You must have heard about Bitcoin, Cryptocurrency and wondering what actually it is, what is bitcoin, what is Cryptocurrency, so let’s learn something about it, here we go.
In very old days people used to do barter trading they used to exchange goods for goods.
After barter different types started as money like commodity/coins with certain values as a payment for goods and services.
What is Cryptocurrency?
Now technology is shifting revolutionary trend of money to Cryptocurrency. It is a form of digital money, neither it is paper money nor any other physical form, no one controls it or regulated by a governing body or any centralized financial authority.
The sell and purchase of Cryptocurrency can be only carried out on internet. It uses blockchain technology it is secure, instant and anonymous.
Why to use Cryptocurrency?
When someone want to transfer money from bank, bank can freeze money or limit the transaction to certain amounts. This is a problem you cannot face while storing your Cryptocurrency in your wallet using your unique key. Only you have access to the funds within your wallet.
Using Cryptocurrency offers an added level of protection, since you won’t be providing anyone with sensitive banking information that could potentially be sold or stolen.
When you have to transfer huge amount, transaction fees are generally low for Cryptocurrency transactions.
Benefits of Cryptocurrency
Everyone can do this; everyone can send or receive money even you do not have access of any bank account.
You can transfer money to anyone, anytime, anywhere in the world instantly, with no bank or middle man with little or no fees.
The possibility to build on top of and around the block chain technology to eventually and fundamentally change the way we use, accept, distribute and interact with money.
You can make Cryptocurrencies transfer or trade 24/7. You can trade Cryptocurrencies at mid night or in the early morning or on the weekends.
Check your wallet, checked? Ahh its printed currency or coins, isn’t it? We use our country’s currency like Dollar, Euro, Pound, Yen or our home currency for daily household purchases or trades. Bitcoin it is an online virtual currency it’s not physically present anywhere. It stores money digitally in online program via computer/phone, you can not touch it or keep in your wallet. You can buy and sell it through internet only using different websites like LocalBitcoins, BitPanda, CoinBase, Cryptonator or other platforms. it is father of all Cryptocurrencies, if you don’t know about Cryptocurrency you can learn more for it here is. Central bank of any country controls paper currencies but nobody or any central authority controls Bitcoin. No matter how huge amount of it, you can only see its numbers (balance) and utilize it through internet only. In old day’s letters were job of a postman to deliver but now in this digital era we use emails. So soon this new currency will take over paper currency in most of large transactions. Bitcoins is father currency of Cryptocurrency, when you transfer paper money a bank involves, charges their fees and system monitors transaction before transferring but in Bitcoin there is no anyone to monitor it. Your transactions will be anonymous and no one can trace it or freeze your account. Bitcoin can break up to eight decimals, each decimal is Satoshi. You can either buy a full Bitcoin or smallest chunk of Bitcoin.
Origin of Bitcoin
It was invented by a person Satoshi Nakamoto using an open-source software in 2008 or 2009 (difference resources quote different years). He created the software and published via internet with initial price of 1 cent per Bitcoin.
How to get Bitcoin?
- Direct Purchase: You can either buy it directly with spending your money through previously mentioned websites.
- Offer your service: Sell your service/commodity for Bitcoin instead of paper money.
- Mining : You can mine it with powerful computers having super fast processor and graphics processors, or you can mine with mining devices specially designed for mining purpose. The maximum existence number of Bicoins can be mined up to 21 million but this could be possible after 150 years minimum.