BITCOIN EXPLAINED IN DETAILS | What is Bitcoin, how to buy Bitcoin | IS BITCOIN LEGAL?

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You’ve been hearing a lot about bitcoin. But just what the heck is it? Here on PrestsBlog, I will explain the  basics about bitcoin.

Bitcoin in modern day is a digital currency type used to generate units of currencies and verify the transfer of funds by encryption techniques operating independently of a central bank. What this means is that bitcoin can be a fund value that has its currency equivalent of different countries, and it can also be a payment option.

By mere applications, once you have enough bitcoins in your coinbase worth a certain currency equivalent, you can pay for services so long they accept bitcoin payment options. 

Bitcoin is a commodity that can be traded for goods and services. Just like beanie babies, tulips, diamonds, chickens, cows, horses, cars, silver, gold, pork bellies, orange juice, wheat, just about any commodity item you can think of…. No one is questioning that bitcoins can be traded as a store of value as all commodities can. Bottom line for bit coin, no it’s not money.

BITCOIN EXPLAINED IN DETAILS | What is Bitcoin, Blockchain, Altcoin, how to buy Bitcoin | IS BITCOIN LEGAL?

There are two main bitcoin uses.

BITCOINS AS CURRENCY UNITS:

Bitcoins are created and held electronically. 1 BTC(Bitcoin) is equivalent to about $440

You have to know that with the emergence of bitcoins, there is a new currency unit introduced to the world, that’s why its tagged "the future of world money". To show the supremacy of bitcoins, The IRS defined it as a property, and not a currency. Once its owned, it's yours.

"It is a denominated commodity that is electronically tradable. It is not electronic dollars. It is more like electronic gold, electronic wheat or electronic beanie babies. There are 21 million of them but each can be subdivided into literally 100,000,000 parts (8 decimal places). That’s 2,100,000,000,000,000 bit coins, or 2.1 quadrillion pieces".

One good explanation from a  Reddit user about bitcoin:

BITCOINS AS PAYMENT OPTIONS:

Platforms like Sacramento Kings, OkCupid, the Richard Branson's rocket ship accept bitcoin as payment options, according to web sources, a customer bought a Tesla Model S ride with bitcoins stacks. More world top brands are embracing bitcoins as payment options.

The major cons about bitcoin exchanges is that it is vulnerable or what we know as prone to hacking. Well that’s the major problem about online payments.

WHAT IS BITCOIN? 

Bitcoin is a digital currency, which allows transactions to be made without the interference of a central authority. The cryptocurrency system is a peer-to-peer open-source software, meaning computers are part of a mining process for coins. 

WHO CREATED BITCOIN? 

Bitcoin was designed and created by an anonymous programmer, or possibly group of programmers, by the name of Satoshi Nakamoto.

HOW CAN I BUY BITCOINS? 

There are various places to buy bitcoin in exchanges for another currency, with international exchanges available as well as local. Popular international Bitcoin exchanges include Bitsquare, Coinbase, and Kraken.

HOW DO I STORE BITCOINS?

Bitcoins can be transferred from bitcoin exchanges to one of many bitcoin wallets, ranging from online options to cold storage.

WHAT CAN YOU BUY BITCOIN WITH?

Bitcoin can be purchased through a digital marketplace, through which you can fund your account with your currency of choice, and place an order on the open market. Bank transfers are the most popular mode of payment.

IS BITCOIN LEGAL? 

The use and trade of Bitcoin are legal in the majority of countries in the world, however, because it is a deregulated marketplace, governments are concerned about its potential threat as a tool for money laundering. Although mining and exchanging are questionable in terms of legality, it is known to be legal for users who exchange bitcoins for goods and services.

WHAT IS BLOCKCHAIN?

A blockchain is a digital ledger recording cryptocurrency transactions, maintaining records referred to as blocks in a linear, chronological order.

WHY USE A BLOCKCHAIN?

Using a blockchain ensures security and manages digital relationships as part of a system of record.

WHAT HAS DISTRIBUTED LEDGER?

A distributed ledger is a database, digitally recording transaction information using cryptography, making it secure and unforgeable. 

WHAT IS THE DIFFERENCE BETWEEN A BLOCKCHAIN AND A DATABASE?

There are several differences between a blockchain and a database, including the level of control. Blockchains are under decentralized control, whereas a centralized database creates a dependent relationship between users and administrators. Users tend to prefer confidentiality, which is better achieved through a centralized database. The performance also differs, as a centralized database is able to compute information faster than blockchains.

WHAT ARE ALTCOINS? 

The term altcoins are short for alternative coins. Given that Bitcoin was the first cryptocurrency to surface in the market, the other digital currencies that emerged are referred to as altcoins. https://www.artikelschreiber.com/schreibenEN.php

What is Bitcoin

Greetings, friends! Can you imagine a thing- the value of which was zero around ten years back and today, its value has touched almost 15 lakhs! I'm talking about Bitcoin, which has recently touched its all-time high price point due to which it is being talked about in the market and the media again. 

Merely 12 years ago, on 31st October 2008, a person named Satoshi Nakamoto published a paper on the Internet  Satoshi's main motive was clearly evident from the first line of the paper.

A version of electronic cash that would allow payments to be sent directly from one party to another party without going through a financial institution.

Who Controls Bitcoin?

Cryptocurrency is a digital asset over which central banks or financial institutions have no control or regulation, For instance, the US dollar is controlled by the central bank of the US. 

The Indian Rupee is controlled by the RBI But there is no central bank or any main financial institution that controls the bitcoins/cryptocurrencies Back then, cryptocurrency was merely an idea in the mind of that person. But now, there is trading worth lakhs and crores on its crypto exchange just like shares are traded on the normal stock markets In order to understand the paper of Satoshi and the context of cryptocurrency, we will have to understand some concepts of our economic history.

Our financial systems are based on trust. The currency notes and coins have value in our society because they are guaranteed by the government and the central bank. Take a look at any note in your wallet. For example, a 200 hundred rupee note. It reads- "I promise to pay the bearer a sum of 200 hundred rupees." This is a promise made by the Governor of the Central Bank, that is, the Reserve Bank.