Written by Shivashish Yadav on   -  7 min read

What is bitcoin?

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Dummy/Noob guide for everyone

Introduction

What is bitcoin? Bitcoin is a digital currency that works completely free. It is not controlled by any bank or government. A currency that is completely virtual. You can also think of it as the online version of cash.

Since Bitcoin is decentralized digital cash, all its transactions are done using a peer-to-peer computer network, all the purchases here are done by the confirmed users. There is no interference of any bank. or government here at all.

Nowadays, it has become possible to earn money with the help of the internet. There. Are many ways by which we can earn money from the internet sitting at home. One of. those ways is Bitcoin, due to which we can earn a lot of money.

Some of you must have heard about Bitcoin and those who know nothing About Bitcoin, today they will know about this article. Yes, today I am going. to tell you about what is bitcoin.

What is Bitcoin and History

Bitcoin is a decentralized currency, so it is not tied to any Specific country or currency. It is a currency built on top of the blockchain. technology, so transactions made with bitcoin are public and Chronologically stored on the blockchain. This means that anyone can see all the transactions done so far.

Bitcoin was introduced in 2009 by an individual or group named Satoshi Nakamoto. Bitcoin was a way to create a digital version of cash where payments could be made from person to person without having to go through a financial institution or another middleman, who might charge a fee for this type of payment and can slow down the processing time.

Anyone can use bitcoin as we all use the internet, and there is no owner of it, in the same way, bitcoin is also there.

Why is bitcoin used?

We can use bitcoin to make online payment or to do any transactions. Bitcoin works on peer-to-peer network-based so people can easily transact with each other directly with no bank, credit card or through any company.

Bitcoin is considered the fastest and most efficient to use in transactions. Nowadays, many people are adopting bitcoin-like online developers, Entrepreneurs, non-profit organizations, etc. And because of this, bitcoin is being used for global payment all over the world.

Like we do online transactions using other currencies, then we have to follow the payment process of banks, only then we can make payment and the account of every transaction by us is present in our bank account so that it can be detected. Where and how much money has been spent, but there is no. owner of bitcoin, so the transactions done with it are recorded in a public ledger (account) which is called bitcoin "blockchain".

There, all the transaction details done with bitcoin are stored, and the same blockchain is the proof of whether the transaction has taken place.

Bitcoin today rate

The value of Bitcoin is about $48740.50 in today's day, so the value of one Bitcoin is 3716609.35. Its value keeps getting more or less because there is no authority to control it, so its value keeps changing according to its demand.

What is a bitcoin wallet?

We can only store bitcoin electronically, and a bitcoin wallet is needed to keep it. There are many types of bitcoin wallets such as desktop wallets, mobile. wallets, online / web-based wallets, hardware wallets, using one of these wallets, we have to create an account in it.

This wallet gives us a unique id as an address as if you have earned bitcoin from somewhere, and you have to store it in your account, then you need that address there and with the help of that, you can transfer Bitcoin to your account. Can keep in a wallet.

Apart from that, if you want to buy or sell bitcoin, then you require a bitcoin wallet and after that, all the money you get for the bitcoin you sell can also get it transferred to your bank account through bitcoin wallet.

How to earn bitcoin

We can earn bitcoin in three ways. Here we have given complete information on how to create a bitcoin account.

  1. The first way is that if you have money, then you can buy a bitcoin directly by paying $999. It is also not that if you want to buy a bitcoin, then you. have to pay the full $999. You can also buy the smallest unit. of bitcoin “Satoshi”.

    Just like there are 100 paise in 1 rupee in our India, in the same way, there are 100 million Satoshi in 1 bitcoin, so you can gradually accumulate 1 or more bitcoin by buying the smallest amount of bitcoin Satoshi. When you have bitcoin and its price will increase, then. you can earn more money by selling it.

  2. Another way is that if you are selling any goods to someone online and if bitcoin is present with that buyer, then you take bitcoin for money, in this case, you will sell those goods to them, and you will also get bitcoin. Which will be stored in your bitcoin wallet. Later. you can also get a profit by selling that bitcoin to another person at a higher price.

  3. The third way is bitcoin mining. For this, we will need a computer with a High-speed processor whose hardware should also be good. We use bitcoin only. for online payment and when someone pays with bitcoin, that transaction is verified.

Those who verify them are called miners and those miners have high-performance Computers and GPU, and verify the transactions through this. They verify whether the transactions are correct, or whether any kind of manipulation Has been done in it. In exchange for this verification, they get some bitcoins as a reward and in this way, new bitcoins come to the market.

Anyone can do this, for this a computer with a high-speed processor is needed, which is not in everyone's budget to buy.

Just like in every country, there is a limit to print currency in a year that you can print just so many notes' year, in the same way, there are some limitations with bitcoin as well that over 21 million bitcoins cannot come into the Market. The limit of bitcoin is just 21 million, more bitcoin will never be found than that.

Talking about now, about 13 million bitcoins have arrived in the market and the new bitcoins will now come through mining.

Advantages of bitcoin

  • Here, your transaction fee is very less than paying by credit card and debit card.

  • You can send Bitcoin anywhere and anytime in the world with no hassle.

  • There is no account block of bitcoin here, like sometimes for some reason the bank blocks our credit or debit card, then that problem does not happen here.

  • If any government or authority in the transaction process of Bitcoin does not monitor you, then many people also use it to do wrong things. then it is beneficial for them.

Disadvantages of bitcoin

  • There is no authority, bank, or government to control bitcoin here, so due to this, there are many fluctuations in the price of bitcoin, then it becomes risky.

  • If your account ever gets hacked, then you will lose all your bitcoins and it cannot be brought back, no one will help you with this.

The End!

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Also, if you got questions ping me anywhere.