Bitcoin has been a topic of conversation due to its recent soaring. On one hand, Japan considers bitcoin as a legal tender, while on the other, JP Morgan Chase CEO James Dimon calls it little more than a “fraud’. Its growing popularity made Chinese authorities nervous, thereby announcing its ban. South Korea, one of the biggest markets for bitcoin, was preparing to ban the opening of anonymous cryptocurrency accounts. It was also planning to launch a new legislation that would enable regulators to close coin exchanges if they felt a need to do so. The Indian government too is uncomfortable with “non-fiat” cryptocurrencies.
Considering the fact of muddled reviews, let’s understand the concept of BITCOIN.
What is bitcoin?
Bitcoin is a digital asset designed to merchandise worldwide anonymously. It is the first decentralized digital currency, as the system works without a central bank or single administrator. It works under the rule of cryptography for regulation and generation of units of currency.
Bitcoin was invented by an unknown person or a group of people under the name of Satoshi Nakamoto in 2009.
How Bitcoins works?
Bitcoins are completely virtual coins designed to be ‘self-contained’ for their value, with no need for banks to move and store the money. They possess value and trade just as if they were nuggets of gold in your pocket. You can use your bitcoins to purchase goods and services online, or you can tuck them away and hope that their value increases over the years. Bitcoins are traded from one personal ‘wallet’ to another.
(A wallet is a small personal database that you store on your computer drive, on your smartphone, on your tablet, or somewhere in the cloud.)