Bitcoin-A new kind of Money
We have been hearing this term “Bitcoin”, since quite a time now. Although everyone would have a
general idea of what it is. Let us know a bit about this “Small wonder.”
Definition:
Bitcoin is a form of electronic money, also known as cryptocurrency. The main advantage of bitcoin is, it
does not need any intermediaries, meaning no banks. There is no need of any middle men to perform
transactions. It is digital currency that is decentralized, used for various exchanges and trading. Bitcoin
was created by a person, using the alias Satoshi Nakamoto in [Link] is a lot of hype and most of it is
because you can buy and sell anonymously. It has come relatively far in a very short time. Many
reputable companies all over the world accept it as a currency.
Where will you find Bitcoins?
Digital wallet (Bitcoin wallet)
They can be stored in a digital wallet, which may exist in a cloud or on a user’s computer. It acts as a
bank (a virtual bank account) that allows the users to receive or send bitcoins, save their money or pay
for things.
Bitcoin Exchange
There are market places called “Bitcoin exchanges”. They allow people to buy or sell Bitcoins using
different currencies. There are various exchanges like Coinbase, Bitstamp, Bitfinex.
Transfer
It is very similar to sending cash digitally. People can send bitcoins to each other using mobile
applications or computers.
Bitcoin ATM
There are Bitcoin ATM where you can change bitcoins or cash for another cryptocurrency.
There are also classified services where you can find a seller who will help you to trade bitcoins for cash.
Bitcoins have generated a lot of interest and curiosity. Why?
They are simple to use for any kind of transactions. You can buy video games, shop for clothes and book
hotels through Bitcoins. But people are most interested in trading them and getting wealthy. You can
anonymously buy merchandise through Bitcoins. The most important advantage is international
payments are easily done and quite cheap as Bitcoins are not regulated by any country’s rules. They are
very helpful for small businesses as there are no credit card fees.
What is Mining?
It is a process of keeping Bitcoin secure by adding new transactions to the chain and keeping them in a
perfect queue. The blocks or transactions are chopped off as each transaction is finalized and bitcoins
exchanged or passed away.
So, these were only the basics regarding Bitcoin so far. It has been 10 years since they were created but
Bitcoins have revolutionized the world’s economy and also disrupted the traditional banking system. Still
it has a lot more years to go, and evolve let us wait for what it has stored in the future for us…
Author: Nidhi Inamdar