What Is a Bitcoin And How Does It Work? Bitcoin Cash Price Prediction 2021 Reddit

What Is a Bitcoin And How Does It Work? Bitcoin Cash Price Prediction 2021 Reddit
What Is a Bitcoin And How Does It Work?


Dear readers! Today we will share with you the knowledge about the technological revolution of Bitcoin i.e. Digital Currency whose discussion and popularity is skyrocketing today.


Yes, Bitcoin and the technology of its work makes it a Secure, Unbreachable and hackproof digital payment system. This is the reason that people today consider it Investment, Alternative currency and many people consider it as the currency of the future.


However RBI has also indicated to bring digital currency and a committee has been formed for this, which may be adopted by adopting blockchain technology so that everything is transparent.


Let's try to understand this technique today. In this post, we will share information on all the main aspects of it by dividing it into different headings.


What is Bitcoin

Bitcoin is a virtual currency. Which is also called Digital currency. It is the world's first Decentralized cryptocurrency. The technique of cryptography has been used in this.


Being digital, it cannot see or touch it like physical things. Bitcoin is a digital payment system. In this, transactions are peer-to-peer, there is no intermediary.

Bitcoin was invented in 2009 by Satoshi Nakamoto. But this name belongs to any one person or no one knows it from any group.


Usually we have to transfer money somewhere, then that money goes through some central agency which controls our money.


Decentralized means there is no center to control it, there is no institution. He who owns it owns it because there is no government supporting it like rupees (INR, $ etc.).


It means to say that instead of the signature of the Governor of RBI, it is the digital signature of the user. That is why the user owns it. Simply put, Bitcoin is basically a computer file.


It is in trend today due to its importance by people, being much safer than traditional currency and widely considered (globally).


It is also quite safe because the network of bitcoins is distributed. To hack it, hackers will have to hack thousands of computers (51%) at the same time, which is quite difficult.

In this article, we will discuss it in detail in the headlines below.


What is Bitcoin Mining?

The process of verifying the transactions of bitcoins (process) is called mining. Miners receive new bitcoins once the transaction is verified.


It is completed in Process 2 Parts. The first task is to verify the previous transaction of bitcoin. This file is about 1 MB in size.


After that a complicated math puzzle has to be solved to add a block of verified transactions to the blockchain. It consumes a lot of computational power.


Miner gets new bitcoins as reward when the puzzle is solved. The verified block connects to the blockchain. The date and time of the origin of each block is on the block which is called time stamped.

Blockchain is also known as Public ledger. For detailed information read below under blockchain heading.


How do bitcoin transactions occur with blockchain technology?

Step-by-step Process of Bitcoin transaction

As the name itself suggests, this is a chain of blocks. verified block connects to the blockchain.


Each of its transactions has thousands of multi copies which are present on the computers running it. Let us know the process of its transaction.


Suppose Ram buys a book and in turn transfers 10 bitcoins to the shopkeeper's wallet. Now that transaction detail will be encrypted in a hash algorithm (SHA256).


After this, Ram will be digitally signed with private key and will close like a padlock.


Till this block is not solved by miners, it will be called 'mempool'. Many similar unsolved transactions form a block.

This box contains the details of Transaction (Sender, Receiver, hash, amount) as well as the detail of its previous transaction.

When the padlock is distributed, the user's public key is also included. This Padlock is actually called blockchain or public ledger. Every 10 minutes a block connects to the blockchain.

It is available publicaly. One can easily find out the transactions by finding one's public key address.


Now the miners solve the complicated mathemtical puzzle to find the key of this virtual padlock.


When this puzzle is solved by any node of the network, this process is called 'Proof of work'.

In this, Padlock (box) opens and data is added to public ledger. Thus the transaction becomes successful.


Miner gets new bitcoins as a reward. Whichever puzzle first resolves gets the same bitcoins.


These bitcoins received as a reward are halved every 4 years. For example, in 2009, 50 bicoins were received in reward for adding one block per chain. Nakamoto also received 50 bitcoins in the reward for mine the first block (block no. 0). This block is called Genesis block.


25 bitcoins started being received in 2012-2013, there were 12.5 in 2016-2017 whereas today we get 6.25. This is why people are vying for Mining.


How to buy / sell bitcoins in India?


There are many options for buying and selling bitcoin in India. You can buy bitcoins online. If you have to hide your IP address then you can use VPN.


Commission or charge is less for a Bitcoin purchase from Exchange. Charge is charged more on any purchase than credit card.


WazirX, Coinsecure, Zebpay, Unocoin, Coinbase are the most popular exchanges to purchase Bitcoin in India.


Like other countries, in order to buy and sell bitcoins in India, you will have to get KYC (Know your customer). In this process, you will have to submit your bank details, address proof and clicked photo of PAN card in online exchange, apps.


In March 2020, the Supreme Court of India rejected the RBI's arguments on cryptocurrency and stamped its purchase horse in India. Since then Indians have started thinking about openly investing in bitcoins.


Although it has always been a risky investment, the investment in which the risk is, the greater the benefit.


Bitcoin rate today


As you may know, bitcoin's rate is not stable. There is a lot of volatility in it. This is the reason why people are nervous because of investing in it.


If you want to know bitcoin rate for any day, there are many websites for this, one of which is Coindesk.

Here you can find the bitcoin rate.


You do not necessarily have to buy bitcoins. You can also buy satoshi. satoshi is the smallest unit of bitcoin. Which is 21 million satoshis in 1 bitcoin.


How to Invest in Bitcoin?


People are taking Bitcoin mostly as an investment, followed by an alternative currency. So you can also invest in bitcoins if you want.


Because its rate keeps going up and down.

Therefore, you invest as much as if you are not able to make any impact on you even if there is a loss.


To invest in it, you can purchase bitcoin through any App or Exchange suggested in this post. Here are some precautions you should take when you are going to invest.


Apps are better than Exchange to invest. Because you do not have full control in your hands after investing through the exchange, because it is under the control of the exchange.


The nature of bitcoin is slightly riskier than the share market. In the stock market, you can do a little prediction of any stock, because the stock has value like physical thing in a way and enough data too. But this is not the case in bitcoin. It is completely dependent on Demand and supply and on the preference of the people.


For investment, you can invest some money from your savings through Apps or online web based exchanges. When the rate is high, sell it.

 

By the way Bitcoin

Or Tax is levied by the Government on the profit earned from any Investments which is also applicable to bitcoin which is why the Government collects tax from Bitcoin Earners.


What are bitcoin wallet and paper wallet?

A bitcoin wallet is a digital account that contains the holder's bitcoins and the private key and public key store.


We need digital "wallets" to store and trade Bitcoin. It is like a bank account in a way.

Wallets are a type of special program that you install on your mobile or computer like ordinary apps.


If you want, you can also keep your details (bitcoins, keys), etc. Offline, for this you need bitcoin. com or bitaddress. With the help of your printer from org, you can keep your details safe by giving them the appearance of a paper wallet or QR code.


You can learn the process of making paper wallet by visiting this site. Paper wallet is the safest way to store bitcoins.


Some bitcoin wallets prevalent in India are given below and they can be used after creating Download >> Install >> account.


Wazirx


It was launched in 2018 by Nischal Shetty. It is an Indian Cryptocurrency Exchange and also provides the facility of Wallet. Its services are also very good.


People believe in this also because Wazirx was the only exchange that was open to investors even after the ban imposed by RBI, while Zebpay and other companies had stopped their services.


It has launched its apps on almost all platforms for web and smartphones which supports trade in around 70+ Cryptocurrency.


Wazirx charges 0.0005 BTC for doing Withdrawl and a fee of 0.2% for trading. Its UI is excellent and KYC also has no issues.


Through this one can buy or sell cryptocurrencies.


Unocoin


Unocoin was launched in 2013 by Sathvik vishwanath and colleagues. Unocoin, which has been discussed by its people in Bangalore by installing Bitcoin ATMs, is also a very good platform to buy / sell or invest bitcoins.

It provides service through both an app-based and web-based platforms. Its interface is good and fast, KYC process is also fast.


Provides 2 factor authentication for better security. Buy / sell is also true, but the price here is higher than other apps.


Here you charge 0.7% for buying / selling bitcoin. If you are its Gold member then there will be a charge of 0.5%.


Here you can recharge your mobiles and also earn its bitcoin referral program like you get commission if someone does bitcoin transaction using your referral code.


Zebpay


Zebpay, founded by Mahin Gupta and colleagues, is also a good platform in the Crypto market. However, it was the first Crypto exchange that closed first during the RBI ban. But then it has definitely won the trust of the people by starting a new beginning.


Its services are also available on all platforms. Its UI (User interface) is also much better and simpler. Here the process of KYC verification is also quick.


Through this app you can buy / sell bitcoin even you can bid. Its maximum transaction is also up to 50 lakhs. Its customer support is also good.


On seeing their fee review, it is found that these fee changes have been made recently, which have gone from very high to very low. So before starting the trade, it would be better to find out by visiting the zebpay site.


Benefits of using bitcoin

Bitcoin being a digital cryptocurrency, no one can steal it like a purse.

If someone knows your public key address then another public key can be generated.

You can do its transactions anywhere in the world at a low transaction fee.

Due to the lack of identity of the sender and receiver in its transactions, its privacy and security is also better.

Due to its transactions being peer-to-peer, it does not require the permission of the 3rd party like the 3rd party is required in the bank's currencies.

It is completely safe from the government not being in control because governments cannot Seize it.

Bitcoins can only be 21 million (1 million = 10 lakhs, according to the Indian number system) ie they are limited.

Disadvantages of using bitcoin

If there is no delivery of any online shopping, you cannot reverse the transaction regarding the payment.

The rate of online fraud and cyber hacking has increased due to being a digital currency.

While on one hand its popularity has increased, on the other hand, there has been a growing concern among the people about its easy funding in the dark web of the dark web.

If you forget your private key, you will also lose your bitcoins.

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Friends, hope you have got some better information by reading this post. We have tried our best to ensure that the reader does not go back from the blog without learning anything. However, if there is any comment / suggestion, then you must write to us in the comment box. We will try to answer every comment as quickly as possible.


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