Bitcoin is one of the most popular digital currency in the world and is also known as digital gold. It is also rapidly becoming a mainstream method of making payments in many countries.
Bitcoin has been around for over a decade now and is becoming more popular as time goes by. Along with this, the value of Bitcoin has also increased very rapidly in the last few years, which means that people are now willing to invest more in Bitcoin than before. So, let’s know what Bitcoin is:
What is Bitcoin ?
Bitcoin is a cryptocurrency also called virtual currency. Being a decentralized digital currency, it is not affiliated with any country or central bank, nor is it issued or regulated by any government. It does not have any physical representation, hence it is called a form of digital currency. It was created in 2009, but the idea of Cryptocurrency dates from the 1990s.
Bitcoin was created to be secure and anonymous. It is created using a mathematical formula and is not regulated by any central authority.
There is no need for any central authority to issue new bitcoins or cryptocurrencies or to monitor transactions. Bitcoin relies on peer-to-peer networks and cryptographic technology, making it an alternative currency for those living in countries with unstable economies.
Its transactions are recorded in a public ledger called the blockchain, which uses cryptography to ensure that transactions are secure and cannot be tampered with.
Who made Bitcoin?
Bitcoin was created in 2009 by an unknown person or group of people named Satoshi Nakamoto. However, the concept of Bitcoin was introduced in 2008 by Satoshi Nakamoto who offered his invention as open source software.
The main purpose behind the creation of Bitcoin was to create a “peer-to-peer electronic cash system”.
World’s first cryptocurrency
Along with being the first decentralized digital currency, Bitcoin is also the largest cryptocurrency in terms of total market capitalization. Decentralized means it is not controlled by any government company or banks.
What is total supply of Bitcoin?
The total supply of Bitcoin in the whole world is 21 million i.e. 2.1 crore but till now 18.6 million BTC has been mined and the remaining 2.3 million is being mined. Which can take approximately 120 years to mine, which will make all Bitcoins available for trading and use around the year 2140. That is, till now about 90 percent is present in the market and 10 percent is to be done.
But the surprising thing is that it took 10 years to mine 90% of the bitcoins and it may take 120 years to mine 10%. The most important reason for which is the increasing difficulty of Bitcoin mining.
How is bitcoin produced?
Bitcoin mining is done to generate Bitcoin. Bitcoin mining is a process through which people solve complex mathematical problems through a special type of computers, as a result of which they get Bitcoin as reward. These problems are solved through computers, hence they are called miners.
How to trade Bitcoin?
Bitcoin was created as an alternative to real currencies whose financial transactions are not controlled by any third party such as person, institution, group, bank, or government and can operate automatically. It is received as a reward to miners for verifying transactions on the blockchain and Bitcoin can be traded through various trading platforms like Wazirx.
Bitcoin has no fixed value, but it can be exchanged for other currencies, goods, services and products, which determines its value. Bitcoin has been in circulation since 2009 and today, one Bitcoin is worth around $23,000 USD.
What is Bitcoin Wallet?
Bitcoin wallets are software programs or devices that act as wallets to hold Bitcoins, just as we use wallets in real life to hold cards or money. Bitcoin wallet has a unique address through which bitcoins are sent and received with the help of the wallet.
For security, these wallets have a private key that matches the wallet address. Bitcoin wallets are available in desktop, web, mobile and hardware types.
What is Bitcoin miner?
Miners are those special computers which are used for mining. Bitcoin mining is the most important part of the blockchain, the cryptocurrency, and the Bitcoin network. Because it helps track all transactions taking place on the network and ensures that there are no secondary expenses. Transactions taking place in the Bitcoin network are processed only through mining, so miners receive Bitcoins as fees.
Is it safe to invest in Bitcoin?
Today, when it comes to investing in crypto, Bitcoin is the safest because it is less volatile than other cryptos. According to crypto experts, a huge increase in Bitcoin can be seen in the coming few years. If you want to start investing in crypto, you can do it with Bitcoin, but before investing, be aware of its risks.