BitCoin(Digital Currency)

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As you know that in the recent times Bitcoin had became one of the most intresting topic around the world.

So lets know about Bitcoin today.......

What is a Bitcoin?

Bitcoin is a digital currency created in January 2009.It is a currency which operates without a central bank or single administration,that can be sent from user to user on the peer to peer Bitcoin network without the need of intermediaries.

Image Credits :-  Market Watch

Bitcoin follow the ideas set out in a white paper by the mysterious and ananoymus Satoshi Nakamoto.The indentity of the person or persons who created this technology is still a mystery.Bitcoin offers  the promise of low transaction fee than traditional online payment mechanisams,unlike government issued currency it is operated by decentralized authority.

Why bit coin?

Bitcoin is a type of crypto currency.There is no physical bitcoin,only balance is present that every one has transparent access to.

All the Bitcoin transactions are highly verified by a huge amount of computing power.Bitcoin is commonly abbreviated as 'BTC'.

Understanding Bitcoin.

The bit coin system is just like collection of computers(or also called as nodes or miners) which all run Bitcoin code and store it's blockchain.A block chain is a collection of blocks.In each block there are a collection of transactions.Since all the computers running the block chain having same list of blocks and transactions,It's is very difficult to cheat the system.

Balances of the bit coin tokens are kept using public and private keys which are long strings of numbers and letters linked through the mathematical encryption algorithm that was used to create them.The public key serves as the address published to the world and to which others may sen bit coin.

The private key is meant to be a guarded secret and only used to authorise bit coin transmissions.

Bitcoin is one of the first currencies to use peer to peer technology to facilitate instant payments.

Bitcoin as form of payment.

Bitcoin can be accepted as a means of payment for products sold or services provided.Brick and mortar stores can display a sign saying Bitcoin accepted here the transactions can be handled with the requisite hardware terminal or wallet addresses through QR code and touch screen apps.An online business can easily accept Bitcoin by adding this payment option to its other online payment.

Risks of Bitcoin.

Regulatory risk:

Since bitcoin is a rival to government currency and it is used for black market transactions,money laundering,illegal activities..etc.Hence government bodies may seek to regulate, restrict the use and sale of bit coin.

Fruad risk:

Since bitcoin uses private key encryption to verify owners the fraud people and scammers try to sell false bitcoin.So it may lead to a huge loss.

Market risk:

Like with any investment on stocks,bitcoin value is also similar to stocks.Sometimes it may be high and some times it may be low.

Image Credits:- The Financial Express

Why do bitcoin price fluctuate?

Bitcoin price fluctuate for various reasons, including media coverage and availability.with negative press,some bitcoin owners panic owners sell their shares,driving down the price and vice versa 

Current value of bit coin:

1bitcoin = 29,36,469.30 Indian rupee

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