bitcoin is nothing is just a decentralized cryptocurrency and it can’t be held physically like dollar, euro or yen because it’s a digital currency that is held by a computer. It can be bought and used as a currency and type of investment that uses peer-to-peer technology for instant payments between people or businesses. Bitcoin the first cryptocurrency, but it’s also the best known of the more than 5,000 cryptocurrencies in existence today Bitcoin founded in 2008 and launched in 2009 by “Mr SATOSHI NAKAMOTO”
what are cryptocurrencies?
Cryptocurrency is decentralized digital money, based on blockchain technology and the most popular versions, Bitcoin and Ethereum, but there are more than 5,000 different cryptocurrencies in circulation, according to CoinLore. “Cryptocurrency is split into two-part cryptography other component currency.”.
It is the process of converting ordinary plain text into text which can’t be easily understood. It is the method of storing and transmitting data in a particular form so that only those for whom it is intended can read and process it.
Legal and illegal
Yes, cryptocurrency is legal in India and many other countries. On 6th April 2018 RBI imposed the banking ban on Indian bank to have a relationship with crypto companies. The Supreme Court of India allowed banks in 2018 to manage cryptocurrency transactions by trade and traders, overturning the ban on the central bank, which gave a big blow to the thriving market.
Cryptocurrency is an illegal tender of money in India.
what is blockchain?
Blockchain is nothing just comprised of two words one is Block and another one is Chain. Block is nothing but a database that stores a lot of information about who is the sender, who is the receiver and when was the money send all information stored in the block.
when the block is full with the information then another block comes into the picture. when this block starts it will point out the last transaction of the previous block and this process will continue and blockchain is immutable.
how does bitcoin transaction work?
Bitcoin supply is limited there are 21 million bitcoin all over the world but out of that in circulation 18.6 million approximately bitcoin which are in circulation.
suppose A transfers bitcoin to B that’s where new transaction will be entered this transaction will have be verified by someone. There are thousand of people all over the world who are wanting to verify this transaction. These people are called as miners, whenever A person sends bitcoin to B person that will be written in cryptic language so miners solve the problem by using supercomputer and in return as a reward that is where we say they are mining the bitcoin.
Invest in bitcoin?
first you have to understand how volatile bitcoin has been in the past and also in the present just to give you few stats
Dec 2017: $19000 / Bitcoin
March 2020: $4000/Bitcoin
March 2021: $59460/Bitcoin
It is very volatile cryptocurrency and alone bitcoin has more than 65% of the total market capitalization of all cryptocurrencies put together and investment depend on everyone’s risk appetite and you can also buy it in fractions