What is Bitcoin? [Explained]
Nowadays bitcoins are getting huge attention over internet. Everyone wants to know about Bitcoin. So, today i am writing this post to briefly explain what are bitcoins? and everything one should know about bitcoins before using it.
Lets not waste further time and learn about Bitcoin…
Points Covered: [Q&A]
- What are Bitcoins? Where it came from?
- Why Bitcoins?
- Is Bitcoin really anonymous?
- Who use Bitcoins?
- How to acquire Bitcoins?
- Units of Bitcoins
- Are Bitcoins safe? What is the future of Bitcoins?
What are Bitcoins? Where it came from?
Bitcoin is cryptocurrency or digital currency and a digital payment system. No Bank or government are tied to this currency. Users who “mine” them creates Bitcoins. Transactions of Bitcoins are direct from peers-to-peers i.e. no bank or middle-man involved. Bitcoin is called the first decentralized digital currency as this system works without a central repository. It can be exchanged with USD and other currencies or products and services.
Inventor of Bitcoin is a mystery. It was launched in 2009 by an unknown programmer or group of programmers under the name “Satoshi Nakamoto”.
There are many reasons to use Bitcoins. Using bitcoins one can buy many merchandise anonymously. International payments are easy and cheap as bitcoins are not tied to any country, government, bank or subject to regulation. Some businesses like them because there are no credit card fees. Many people buys bitcoins as an investment, hoping that the value will raise.
Yes, to a point. Transactions and accounts can be traced, name of buyers and sellers are never revealed – only their wallet ID’s. This is the reason why bitcoin became popular currency among the people who buys drugs online or are involved in other illicit activities.
Some businesses have jumped on bitcoin currency. Many merchants are beginning to accept bitcoins as transactions are made without involvement of banks, so no transaction fees and no need to give your real name. For example, overstock.com accepts payments in bitcoins. According to the report from blockchain.info, more than 3,00,000 daily transactions are being carried out in bitcoins. which was around 2,30,000 transactions per day, A year ago. Still this transactions are less than credit cards and cash.
How To Acquire Bitcoins?
There are three ways to acquire Bitcoins.
- Buy on an exchange.
Buy on an exchange: There are several marketplaces which are called as “Bitcoin Exchanges” where people are allowed to buy or sell Bitcoins using different currencies. Mt.Gox is the largest bitcoin exchange. In India, zebpay is quite famous for bitcoin exchange.
Transfers: People can transfer Bitcoins to each other using apps or computers. Eg: Zebpay. It is similar to sending cash digitally.
Mining: Peoples (Miners) use special software to solve complex math problems in exchange of certain number of bitcoins. This is how bitcoins are created.
The unit of this system is bitcoin. Symbols used are BTC, XBT and . Alternative units for small amount of Bitcoin are millibitcoin (mBTC), Microbitcoin (µBTC, also known as bit) and Satoshi (SAT).
To know current rates of bitcoins: Click Here.
Yes, bitcoins are safe. A network of miners keep the system honest by pouring their computing power into blockchain. The blockchain is a public ledger that record every bitcoin transaction. A network of miners running bitcoin software look after the Maintenance of the blockchain.
Due to unregulated system, no one can guess the future of Bitcoins. But, its changing as government are concerned about taxation and there lack of control over currency.
Mobile App to buy bitcoins: Zebpay – during registration use refferal code “REF42424483” to get free bitcoins worth ₹100.
Hope now you know what are bitcoins. Express your views on Bitcoins commenting below, are you going to buy bitcoins? or you found it fake?
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Source : Wikipedia