Big news has come for those who are dealing with cryptocurrency. The Supreme court has removed the ban on cryptocurrency in India. Now cryptocurrency trading in India is legal. RBI imposed a virtual ban on the cryptocurrency trading on 8 April 2014 and prohibited any people from trading in cryptocurrencies. But now this ban is removed, the way has been cleared for them who want to invest in crypto. Also, this is good news for those who have invested in Bitcoin, Ripple, Litecoin or other virtual currencies. That’s why in this blog we will talk about cryptocurrency. Especially bitcoin and learn more about what it is.
There was a phase in the year 2014 when the value of cryptocurrency suddenly increased. Talking about bitcoin, its value was only $ 13 in 2013 which reached around $ 20000 in 2014. At that time, people had invested a lot in bitcoin and had also made big money from them. However, after this, the value of bitcoin again fell and the value of bitcoin today is about $ 7,880. After all, what is this bitcoin after all? And how does it work?
You cannot touch bitcoin because it is a virtual currency, not a physical currency. The golden coins that you see in photos are only for representation purposes. Bitcoin was invented in 2008 by a man named Satoshi Nakamoto. There is no verified information available about him yet. Bitcoin is a decentralized digital currency that operates without any mediator. Being a decentralized currency means that it has no owner and no agency to controls it. The first objective of bringing this virtual currency into existence was to remove the mediator while doing the transaction. Bitcoin’s transactions remain anonymous. A bitcoin address is generated and bitcoins are transferred from that address to another address.
Now let’s talk about how you can buy and sell bitcoins. So for this, there are a lot of simple apps and websites which make you available bitcoin wallet facilities. By linking your bank account with these apps, you can buy and sell bitcoins. If you do not want to buy the whole bitcoin, then you can buy it in parts also.
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Now let us tell you that from where bitcoin comes from and who makes it. But for this, we have to first understand blockchain technology. Blockchain technology is used in Bitcoin. Here every bitcoin transaction is recorded. The blockchain of bitcoin is accessible to all. By going here, you can see every bitcoin transaction till now.
Miners do the job of keeping a record of all the transactions that happen in Bitcoin. Minors are people like us whose job is to maintain the blockchain. Miners record every transaction of bitcoin in the blockchain and in return for this service, they get some bitcoins in the reward. These are bitcoins that are new and are generated for the first time in the system. This is the only way to generate new bitcoins in the market.
Specialize hardware is used for mining bitcoin. Bitcoin transactions are placed in blocks. When one block is filled, the new transaction is placed in another block. Each block has the address of the old blocks and the new blocks that are being built will have their address in the subsequent blocks. Due to this process, the chain of blocks is made, that’s why it is called a blockchain.
The value of bitcoin varies greatly. In 2017, Bitcoin’s value had increased almost 4 times in just 35 days. But in the next 7 weeks, it also fell. With this, if you sell a bitcoin to someone, then they will not be able to come back unless the receiver returns to you.
Earlier, the government and RBI had banned bitcoin and cryptocurrency. But now after the decision of the Supreme Court, such currency will start again. Now maybe the government tries to control cryptocurrency in India through authority. What the government will do and what will not, it will be known in the future.
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