Bit coin | What is Bitcoin? | All about bitcoin?
What is a bitcoin?
Bitcoin is a virtual currency. It is a form of unregulated digital currency, not issued by any central bank. That means, it has no central authority and it can be exchanged like currency notes. It maintains anonymity. Neither central bank nor government would track it. Digital payments lacks such anonymity.
How to get bitcoins?
- Anyone can purchase bitcoins from other users. They are available in bitcoin exchanges.
- We can even mine bit coins by investing in software & hardware. More we help with the encryption, higher the probability, that we can earn bitcoins.
- It is generated when we solve a puzzle that makes the black chain more secure. Puzzle is complex enough to ensure it takes time, though we use software.
How many bitcoins can we mine?
- There are limited number of bit coins that can be mined, unlike normal currency that can be issued by a central bank for unlimited value.
- Black chain can produce 21 million bit coins at max. That’s how the system designed.
- As of now, 15.2 million bitcoins have been mined and are in circulation. That is approx. 75% of total capacity.
- Last bitcoin will ever be mined, will come into existence in 2040, as per estimates.
What is the value of bitcoin?
- The value of bitcoin will not be a constant. It’s price depends on the basic economic factors Supply and Demand. It’s price is determined by the market in which it trades dependent on the stated two factors.
- The worth of one bitcoin is $11,182.50 as of June 25th 2019.
- Since bit coins are in limited, if demand increases, value of it will increase, to say logically.
- It may cost around $500000 by 2030, early investor quoted.
How does bitcoin work?
- When we transact in bitcoins, it’ll be included in block chain, and the same will be broadcast to network.
- This is to ensure same bitcoin is not spent twice by same user.
Miscellaneous information on bitcoin:
Total value of 67 digital currencies in circulation over internet has reached nearly $13 billion. Bitcoin alone accounts for over $9 billion.
Latest trends in bitcoin transactions:
US declared all prevailing money laundering laws would apply to bitcoins.
China asked its financial institutions, not to deal in bitcoins.
Central Bank of India, Reserve Bank of India (RBI), recently cautioned users, holders and traders of Virtual Currencies (VCs), about potential risks in operational, security and customer protection.