In this crypto article, you are going to learn what is bitcoin? What is real-time usability and why is exponentiality growing? We will try to give most of the answers to important questions.
Bitcoin is the digital currency and 10 years before 1 BTC value was 70 Rs means 1 dollar. But currently, in 2021, The 1 BTC value is approximately 48,00,000 RS means more than $60,000.
Why there is a massive increase in the price of bitcoin? Is it speculation or there is truly a huge value in this currency for future perspective we will learn that also here.
What is bitcoin?
It is a world-first cryptocurrency developed by a person or group of people with a pseudonym called Satoshi Nakamoto based in Japan.
Santoshi Nakamoto has announced the white paper for bitcoin in the year 2008 based on blockchain technology and they have published the white paper and website in the year 2009.
The person or group of people are the first investor of blockchain technology and the concept of cryptocurrency in the world.
What is blockchain technology?
Blockchain is one of the best inventions of technology created for secure transactions based on computer security algorithms cryptography.
It is a ledger that means it is the book for transaction management, where multiple transactions get managed in a block, which means each transaction is stored as a block.
Every block is connected to another block and based on this concept the chain is created that is called the blockchain.
Blockchain technology is very secure which means every transaction data stored in the block is hard to modify or delete in simple words not able to hack.
Where Bitcoin Comes to Circulation?
First, we will understand how money is get circulated in any country based on that we will explore the idea of bitcoin circulation on the internet worldwide.
So in simple words, every country has its own currency which is created and managed by the central bank of the specific country like the Federal Reserve System (FRS) in the USA and the Reserve Bank of India (RBI) in India.
These banks have control to print and circulate money into the normal banks but they don’t have control over printing money and that is the big problem.
This means more amount of money in printing can increase the inflation rate in the country because more money printing and circulation can decrease the value of money in the market.
Flat Currency (USD, INR, EURO) is the Depreciating Asset
– Anonymouse
Now how the bitcoin comes to circulation because it is totally different from fiat currency and the reason is there is no central authority available in the world that creates or manages the BTC.
If we need to have bitcoin that needs to be mined on the internet what that means, similar to Metal (Silver, Gold, etc.) we need to perform mining process from the earth, same as for BTC it needs to be mined from the internet.
What is bitcoin mining?
Bitcoin mining is the process to bring a new BTC into circulation that is done by digital mining by the BTC miners on the internet.
Bitcoin miners are the legitimate person who audits the transaction of bitcoins and then add the legitimate transaction into the block to create a blockchain.
This mining process contains two parts one is fees that most miners get paid in the BTC for the mining and the new second one is block subsidy where new coins get issued.
On the basis of this mining process, new bitcoins come into circulation but that miners need to solve different mathematical problems and puzzles.
Miners need the computational setup called Rigs to perform the mining process for any cryptocurrency which is a high processing computer.
What makes Bitcoin more Demanding?
Bitcoin has a very limited supply and currently, in the world, there are only 21 million bitcoins will be available and the mining will be stopped after 21 million BTC.
Every coin miners get a reward in mining and it is divided every four years for example before the year 2020 miners were getting 12.5 BTC for mining after 2020 now they are getting 6.25 BTC like that.
Till now 92% of bitcoin mining has been done and 8% is remaining and it will be complete in the next 100+ years because the BTC mining process is getting more complex in the future.
It is globally available to the transaction and it gives a high amount of liquidity than other assets, also it is more secure and decentralized this thing makes bitcoin more valuable.
Why bitcoin price is growing Faster?
The price of bitcoin is growing faster because there are certain reasons for that like its future need, mining process, technological aspects, etc.
Bitcoin is still volatile and the reason is a low market cap as compared to the share market and different companies’ market cap like Google, Apple, etc. BTC is in the growing stage.
All the above use, future need, and the investment perspective bitcoin the very demoing digital currency in the world and thas the reason the prices is growing massively in the world as compared to other cryptocurrencies.
Does invest in Bitcoin is legal?
Doing investment in bitcoin is legal now and you can buy or sell bitcoin in the world with the help of your mobile phone.
Countries like the USA, Japan, and others are accepting bitcoin as a currency for transactions and there is no ban on bitcoin in India also for buying and selling.
But in China, cryptocurrencies like bitcoin and others are completely illegal and there is a ban on them, similarly, the Indian government has created or going to create strong regulations on it.
You can buy bitcoin with the help of different crypto exchanges and applications like Coinbase, Binance, in India, WazirX, Vauld, etc.
Conclusion
The concept of cryptocurrencies and blockchain technology can be a revolution in the world and things can change the current view of the market.
Not only bitcoin but also there is a large number of digital currency or cryptocurrencies are coming into the world every single day with different problem-solving strategies similar to bitcoin.
There are other crypto-currencies are available in the computation of bitcoin to solve similar different types of financial and technological issues.
Recommended Articles:
How Blockchain Works? : Introduction To Blockchain Technology
Meet Hardhik, a seasoned professional analyst with a master’s degree in Data Science and Analytics from Dublin Business School, Ireland. With a robust background in the analytics industry, Hardhik is an expert in utilizing data analysis tools and technologies. His passion extends to coding and sharing his expertise through technical blogs. Join us in exploring the intersection of data science, analytics, and technology with Hardhik as your guide.
