There was a huge outbreak of “Bitcoin” posts on social media in early December this year. Even more proficient users of modern technology didn’t know what was this all about. Even after researching it made several people scratch their head. Here are some facts that you need to know about bitcoin:
1. It’s digital currency, only
Bitcoin was introduced to people in 2009, a cryptocurrency generated through cryptography which was created by pseudonym Satoshi Nakamoto in Japan. Bitcoin is a digital currency and has no physical form. You can carry out only electronic transactions through it to bitcoin wallets or any organization which accepts bitcoin.
2. No ownership
Like other money transactions are controlled by bank or government, bitcoin is not owned by anyone. It is a peer to peer transfer of money. You have your own private key and public key through which you can transfer bitcoins to other bitcoin wallets. Transactions on bitcoin are irreversible which means there is no central authority interfering in your transactions like bank or government. This gives you the freedom to make your decision and at the same time not giving you an option to complain if anything goes wrong.
3. How it works?
To get started you need to create a Bitcoin Wallet and put some bitcoin in it. While you do that a private and a public key will be generated which are different and yet they relate to a mathematics formula. You have to secure your private key, once created cannot be changed or renewed. There are different kinds of Bitcoin wallets depending on who controls your private keys to the spending of bitcoins. Most of the users choose to be in charge of their own private keys rather than making machine responsible which means that they are solely responsible for any transaction made.
4. Legal, illegal, both
Use of bitcoin is illegal in many countries and also illegal in some. This does not stop people from making bitcoin exchanges throughout the world. Since there is no government control on this network there is no way to ban the use of it unless caught red-handed physically.
5. What now?
At the end of November 2017 bitcoin value reached to $10,000 per unit. Its total market capitalization has surpassed $100 billion making its worth more than investment bank Goldman Sachs Group Inc. and other huge names like eBay, Disney and McDonald’s. The future of bitcoin is uncertain but with the rise in its investors, there may be some stabilization in its widely fluctuating value.
by Patel Naitri Ashvinkumar