Bitcoin is a cryptocurrency that was announced in 2008 and launched in 2009 by the anonymous person Satoshi Nakamoto. This person started the base of bitcoins. He gave clear information about everything and launched it. Initially, it had no value but its value increased with time. Value mainly depends on the demand of the people towards bitcoins.
Bitcoin is just a digital currency that is just used in digital form. This cannot be withdrawn from any a.t.m, or there is no physical form of the bitcoin. Bitcoins have increased their value in recent time. A large number of people are employed in this platform and earning a large proportion of money. Some are getting profits by investing, and some are getting by just working for bitcoins.
Bitcoin working is also profitable. It takes place mainly by two methods, ie. Blockchains and data mining. In blockchains, data is stored in the blocks, and the newly formed blocks get linked to each other, and the blockchain is formed. The working of blockchain is done by the process of mining.
In data mining, there are lots of people who work and provide their database for bitcoins. They start helping the bitcoin platform and begin forming the blocks. When they create one block and move on to the other league, they get rewarded in the form of bitcoins. These bitcoins are the one which is received from the transaction charges.
The system of bitcoins is very safe as it is being encrypted by cryptography. This provides lots of security to the data. No one can easily hack this.
Advantages of CryptoCurrencies
- This takes very few transaction fees. Otherwise, there are lots of transactions fees against the amount which we want to transfer.
- This takes very little time for the transfer. It just takes 4 seconds to 10 minutes. This is because there are thousands of minors present for just one transaction on bitcointalkshow.com. And they solve it in the minimum time possible.
- There is no geographical factor that means currency. There is no right of any bank on cryptocurrencies. So the bitcoins can be transferred digitally to any country at any time without any currency charges.
- This majorly takes care of the privacy of the user. This makes the identity of the user private. Only the wallet id is visible on the website, which is just a number; no one can crack your id with that number.
- This is now being legalized in many countries and can be used openly. Earlier it was not legalized in India, due to which there was the big problem of investment. Now, this is being legalized by the SUPREME COURT OF INDIA.
DEMERITS OF BITCOINS
- There is a significant disadvantage that once the amount is transferred, it can not be reversed. If the person had done the input of wrong information and the payment has been processed, the processed payment cannot be reversed even if this is done by mistake.
- This platform is being used for various illegal activities like smuggling. If anyone wants to do an unlawful transaction, there could be no record of that person. This is considered to be the safest platform on which you can do an illegal activity, and your identity would still be anonymous. No one can track the movement. No one would ever know which action is going to take place.
- If the data of the person gets crashed, then it cannot be recovered by any means. The data will get orphan in the bitcoin database. No one can claim that data. The rich bitcoin user will be suffering from a significant loss just because of this small mistake.
Conclusion
So this was all about the bitcoin. What is bitcoin, how it works, what are its merits and demerits everything? This information might be helpful to you. In the above paragraphs, everything is just tried to be explained in a straightforward way. In today times, everyone wants to invest in bitcoins and make money.
If you are the one that wants to make money, then you have to start with small shares, and after getting the experience, you can start with Bitcoin. So as to make you understand that what is bitcoin. According to most people, this considered to be the best method of investment.