The blog is all about Cryptocurrencies, questions evolve around Cryptocurrencies. like Should you buy Bitcoin? What is Blockchain? How does Cryptocurrency work? etc.
What is Cryptocurrency?
A cryptocurrency is a digital, virtual currency, made up of bits & bytes secured by cryptography, controlled by blockchain technology, which makes it nearly impossible to counterfeit or double-spend. The word “cryptocurrency” is derived from the techniques which are used to secure the network, like cryptography. Cryptocurrency is not an organization’s or any government’s property like ₹, $, €, etc. There are 7,800+ cryptocurrencies out there on the Internet as of today’s date. Some popular cryptocurrencies are Bitcoin, Ethereum, Ripple, Litecoin, Tether, Libra, etc. ( Should you buy Bitcoin? )
What is Bitcoin?
Bitcoin is a cryptocurrency that is invented by Satoshi Nakamoto ( an unknown person or maybe an organization) in 2009. This is a peer-to-peer electronic currency without a centralized database. This is totally open source and each transaction will be visible to everyone. No government or organization can control the value of the Bitcoin, like ₹, $, €, these currencies. A Bitcoin transaction can only possible by Bitcoin miners. A Bitcoin miner can solve algorithms in terms to complete a transaction, this needs huge computational power. Bitcoin agency is not controlled by a person it is totally opensource and every transaction is controlled or visible by blockchain technology. So Should you buy Bitcoin?
What is the value of a Bitcoin?
If no one is the owner and if it is totally open-source then who set the value of the Bitcoin. The value of Bitcoin depends upon the demand and supply of Bitcoins. And the supply of Bitcoins is limited to 21 million. That means according to the algorithm created by Satoshi Nakamoto the last Bitcoin one can mine is 21,000,000th no. After that, no new Bitcoin will be created but the trading will be still open to all.
1 month before the price of one Bitcoin goes up to $33,000, which is an all-time high. That means the demand for Bitcoin is directly proportional to the price of Bitcoin.
How are Bitcoins created?
Bitcoins are generated by a competitive and decentralized process called “mining”. Bitcoin miners are processing transactions and securing the network using specialized hardware and are collecting new bitcoins in exchange. You can mine a bitcoin too but that needs huge computational power and problem-solving abilities. You should understand What is Blockchain? in terms to understand the mining process. Okay, then should you buy Bitcoin?
What is Blockchain Technology?
A blockchain is essentially a digital ledger of transactions that is duplicated and distributed across the entire network of computer systems on the blockchain. ( What is Blockchain? )
Suppose RBI issued a ₹100 note after that it goes to a bank’s ATM, from there person ‘A’ withdraw that money and give to the next vendor ‘B’, ‘B’ again use that money to buy some household things from vendor ‘C’, after that, I go the shop and buy some goods and in return, the shopkeeper ‘C’ handed me that ₹100 note. So am I verify that the ₹100 note comes from where? or is there any need to verify? No, because the RBI signed that note, so it is a legit note. But if I verify the whole transactions from where the ₹100 note came from and made a chart then that will be an internet-like diagram and this will also assure the authenticity of that ₹100 note. Same for the Bitcoins. so Should you buy Bitcoin?
Can anyone hack a Bitcoin transaction?
Near to Impossible. Every transaction is a block and a transaction can not be undone according to the algorithm, all the blocks are connected with hash codes & specific Bitcoin wallets along with bitcoin passwords. All the Bitcoin transactions were recorded not only in a specific centralized database but also distributed and recorded by all the miners and every transaction network. You can explore all the transactions here. My id is secure in this network. If anyone tries to hack any ongoing bitcoin transaction then one needs to hack or access each and every block of a transaction from the 1st ever bitcoin transaction. Now imagine how much computational power one should need to hack or access each transaction from the 1st. And if one has that computational power then also it will take many many years to guess every hashing algorithm.
Should you buy Bitcoin?
After reading everything about Bitcoin, I hope you understand, Should you buy Bitcoin? or not? As it has no fixed rate in the world no one can control the price of a Bitcoin it is very tough to say when will the prices go up and when will it goes down. Should you buy Bitcoin?: the answer is you can buy a Bitcoin. How much money? The money you can afford to lose or if you forget that money you will not regret, only that amount of money you can invest in these cryptocurrencies. If the prices go up 😀then that will be good and if goes low 😞 then you lose that.
Where to buy Bitcoin?
You can visit any of the Cryptocurrency exchange websites that provide you the option to buy and sell any cryptocurrency. some of the main cryptocurrency exchange websites are –
There is one Indian application to do so, and I am also investing via this application named
“Coinswitch Kuber“, is secure and you can invest from this application also.
Every trading system has flaws and the same in our current currency system. Cryptocurrency may be the future of transactions, where privacy is a “?” Check out how to be safe online basic things by AnotherWhy. Comment down your thoughts, Thanks for Reading.