Let’s Know A Few Things about Bitcoin
Bitcoin is a digital currency that can be used as a medium to store money as well as exchange it.
The cryptocurrencies invented in 1997 like b-money and Hashcash etc.
have inspired the inventors of Bitcoin as found in the documents related to Bitc.
Though Satoshi Nakamoto was never recognized as the inventor of still his name was
found in the white paper original released in 2008.
In 2009, soon after the release of white paper the software of was released.
Bitcoin as cryptocurrency is neither controlled by any central bank or country nor supported by basic asset like gold.
However, there is a peer-to-peer system that uses several computers to verify the transactions before
recording them and control this digital currency.
This digital public record is called blockchain. One can create new Bit by earning them through
its transactional record.
Working of Bitcoin
The popularity of Bit as a medium of storage and exchange helps in determining its value.
This function is known as cryptography which helps in protecting it from counterfeiting,
devaluation and theft like other currencies. However, cannot be created randomly.
The number of new Bits is limited which tentatively prevents it from frauds,
manipulations and devaluations.
Trading in Bitcoin
Bitcoins are traded on spot and in future markets by investors and speculators with the help of
Some features like short selling and trade margins of these markets resemble to the markets of other
contracts and currencies.
Though the price quoted in foreign exchange markets is the exchange rate of
a currency but the value
a Bitcoin is expressed in terms of other currencies.
For example, nearly USD $6,510 is the price of 1 Bitcoin.
But Bitcoin cannot be used to pay taxes of federal government of any country as it is neither a
legal tender nor a flat currency.
But it is accepted by some of the online and offline traders against the payment of their services and products.
Bitcoins are also accepted by gambling units and private transactions.
You can also find at certain ATMs globally.
You need a Coinbase, an online wallet, to store as well as trading in Bitcoins.
Written By : YOUSSEF J A ALMEER
Image rights @ livemint.com