What are we looking at right now?
Bitcoin, a form of digital currency, created and held electronically. A payment system that nobody controls. They’re produced not in any institutions but by people using computers, all around the world. It is described as the first decentralized digital currency. Whose crazy idea was this?
Bitcoin is a cryptocurrency and a payment system invented by an unidentified programmer, or group of programmers, under the name of Satoshi Nakamoto. Bitcoin was introduced on 31 October 2008 to a cryptography mailing list and released as open-source software in 2009. There has been various claims and speculation concerning the identity of Nakamoto, none of which are confirmed. So why the big fuss now?
The web-based currency that has been declared to be a dead system jumped to a three-year high of $1,219.24 with the start of 2017. The Financial experts have on many occasion criticized it as too volatile, risky and in some cases a scam So how does it work?
Bitcoin uses peer-to-peer technology to operate with no central authority or banks; managing transactions and the issuing of bitcoins is carried out collectively by the network. IT is transferred person to person via The INTERNET. It is kept in a digital wallet on the user’s computer or mobile devices. Once a Bitcoin wallet has been installed on the computer or mobile phone, it will generate first Bitcoin address and you can create more whenever you need one. BITCOIN network is secured by individuals called miners. After the transactions are verified they are recorded in a public ledger called blockchain. One more thing.
A Bitcoin address is a single-use token. Like e-mail addresses, you can send bitcoins to a person by sending bitcoins to one of their addresses. However, unlike e-mail addresses, people have many different Bitcoin addresses and a unique address should be used for each transaction. Are the cops gonna catch me if I use this?
Countries around the world have a wide-ranging view of the digital currency bitcoin. Western superpowers like the United States and the United Kingdom have shown a positive attitude towards the new technology. Countries like Canada and Australia are still deliberating on what to do about Bitcoin, legally. Others have already made their decision against digital currency as a whole, and bitcoin, in particular. In India, RBI is against legalizing the use of bitcoin as of now. They are currently examining the risks associated with its usage