In todays blog we are going to talk about a thing which has value of zero in past but in now days it was trending in internet world.in todays time it is going to touch value of 15 lakhs .the thing i am talking about is Bitcoin.
lets know everything about bitcoin
Bitcoin
Why Bitcoin started ?
Merely 12 years ago, on 31 october,2008, a person named Satoshi Nakamoto published a newspaper on internet .His thoughts of launching the cryptocurrency was clear by the newspaper report he published.
His main motive was clear from the first line of paper.
THE LINE IS - 'version of electronic cash that would allow to send money from one party to another party without going under financial institution.'
Cryptocurrency is a digital asset on which central bank and any financial institution have no control.
Like US Dollar is controlled by central bank of US and Indian rupee is controlled by reserve bank of India. Cryptocurrency is not controlled by any of the main financial institution .
At that time bitcion was just a idea. But in present time it is the route to become millionere or earn digitally .To understand the aspects of Satoshi's newspaper report we have to understand some concepts of our ancient history. Our financial system is based on trust of people. We see that it is written on note that i promise to pay the bearer to pay the sum of x rupees. if this line is not written on note it would be a ordinary paper.
History of Bitcoin
At the time of World War 2 the country which was in power was America . So other countries have to link their currency t US Dollar. the actual value of dollar is depended on gold and silver but it is not possible to take gold in pocket. In1971 US abolished the depends of value of US Dollar on gold. So other countries are free to print their own currency and govern by their central bank. Then one thing comes to your mind that what is relation of cryptocurrency to this ancient history?
The fact is that when you deposit money in any bank you are giving permission to bank to play with that money. We deposit money in bank from which bank gives money to landers the interest the charge from which some part is given to depositer. Very recently we have seen that banks uses our saving in irresponsible manner . Banks give huge amount of loan to buisnessmen and industrialists without proper check. By this type fraud the major victim is depositer like us, But the decisions of government can even put in danger. Due you remember November 2016 government banned 500 and 1000 notes in one strike, 86% of India's currency becomes unusable. Those who are in favour of bitcoin those who not want to that government have control over there currency .Satoshi considerd bitcoin as alternate financial system based on software technology and out of control from third party.
How cryptocurrency works
There is a common account of all bitcoin transections which is called ledger . The copy of ledger is available to every network whose bitcoin is part The person who operates this network is called miners. The work of miners is to verify transactions. Every bitcoin transaction have a unique variable. Function of miners is to calculate it. In exchange of tis work miners get most valuaeble thing the bitcoin. This system is called 'proof of work'
Bitcoin as alternate currency
Advantages of bitcoin
- when you have to transfer funds from one country to another country banks charges high for foreign fund transfer and take much time. At this time bitcoin is better option because it charges no fees and take less time as compared to banks.
- Its vale can rise any time. At the time of pandemic mutual funds and industrial sector is struggling whereas cyptocurrency is growing day by day.
Disadvantages of bitcoin
- In the dark web on internet people started accepting payements from bitcoin for drugs and weapons.
- It become very difficult for law enforcement agencies to track transactions because it is out of financial system.
- Anyone can make their own crypto currency so by this many bogus took money of people promising that ones the rise of currency starts your money will be doubled.
