What is Bitcoin and how does it work
Friends, you must have heard the name of bitcoin in the world of share market or cryptocurrency. But have you tried to know its benefits, what is this bitcoin and how does bitcoin work, if your answer is no and want to get information related to bitcoin, then you must read this article till the end.
What is Bitcoin ?
Bitcoin is a Cryptocurrency which you can also call Digital Currency or Virtual Currency. No one has any control over it like there is on the currency of a country. It is made on blockchain technology, in which all its transactions are recorded,
It is a kind of decentralized currency, which means that no authority or government can control it. Bitcoin was launched in 2009. Actually, who launched it, it has not come to the fore yet.
But Satoshi Nakamoto is said to have launched bitcoin. The main objective of the launch of Bitcoin was to reduce online transaction fees and improve online transactions, which cannot be controlled by the government of any country.
Cryptography is used to make Bitcoin even more secure. Bitcoin does not have any physical existence. Meaning that you cannot see it physically nor do you have it like the currency of your country but it is safe in your digital wallets.
Every transaction that happens in this is absolutely safe because it is made on blockchain technology. The blockchain works in a way like a ledger book in which all the transaction records of the cryptocurrency are recorded. And anyone can see it easily.
Whether there is a demonetization in a country or anything, it does not affect anything, yes market up and down definitely happens. But even if demonetisation happens in any country, the transaction of bitcoin continues there.
Even if you do not have bitcoin physically, but still you can easily track it and see what is the value of your coin and you can also buy and sell it easily. So by now you must have understood to some extent what is bitcoin.
How does bitcoin works | What is the use of bitcoin ?
Bitcoin is mainly used for doing online transactions. As I have already told you that no one has control over bitcoin, it is a kind of decentralized digital currency, so its transaction is recorded on the blockchain, which can be seen by anyone. In today’s time, bitcoin is used a lot for transactions because it does not have to be confused in any way.
Easily anyone’s Wallet Address through which bitcoin is sent and received. We just have to give the receiving address to the person in front of him from which to receive bitcoin and after that the transaction is done easily.
In this, international transactions are also done in this way. It is not very easy because if you want to do international transaction through bank then how much hassle has to be faced which takes time but you can do bitcoin transaction sitting at home within 5 minutes.
As the craze of cryptocurrency is increasing, the biggest companies are starting to accept bitcoin as a payment method, due to which the value of bitcoin is increasing. Because bitcoin or any cryptocurrency works in the same way, the more a cryptocurrency has a usecase, the more the value increases.
How to use Bitcoin ?
If you have read this article from the beginning, then you must have understood to some extent how to use Bitcoin to do online transactions. At the same time, bitcoin is also used by people to invest because it is going up very fast.
As I told you in the beginning that if you had bought 100 rupees of bitcoin when bitcoin was launched in 2009, then your 100 rupees bitcoin would be worth crores of rupees today.
When bitcoin was launched, its price was around 6 paise, if you had bought 100 rupees, then 1700 bitcoins would have been easily available, whose value is around 600 million in today’s time. That is why people also use bitcoin as an investment.
Is it safe to invest in bitcoin ?
to tell the truth, it is absolutely safe to invest in bitcoin, but the risk here is very high, it does not mean that bitcoin will run away but you have to take the risk if you want to invest in bitcoin because crypto market Too much goes up and down and due to which a lot of damage is also done.
That is why it is said that only as much money should be invested in crypto as it does not make much difference in losing.
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I hope that you have liked this article of mine very much and with the help of this article, you must have got information about What is Bitcoin. In this article, we have tried to tell you about every information related to Bitcoin using the simplest language possible.