Bitcoin..?? What is Bitcoin.

What is Bitcoin

Bitcoin is the first Decentralized Cryptocurrency which is powered by Blockchain. It was Invented in 2009 buy an anonymous programmer named Satoshi Nakamoto. Bitcoin is a Digital currency. Unlike Rupee, Dollar or Euro it can not be held or stored physically. Bitcoin is used as medium of transaction which is completely digital in nature. 

Understanding Blockchain, Decentralization & Cryptocurrency..  

Blockchain is a distributed ledger system that records the data in a network of servers rather than in one place and allow anyone to excess these data.

Decentralization is a method of hosting data and powering systems through a vast network of stake holders, not letting one entity controls the system. 

Cryptocurrency is digital commodity that facilitates the transaction of product and services. Cryptocurrency doesn't require a mediator to carry out transaction.

How Bitcoin is Created???

Bitcoin is created through a process called Mining. Mining is the process of carrying out high level complex calculations with high power computers through blockchain. In bitcoin mining, miners verify the bitcoin transactions and write it to the bitcoin ledger. And in return miners are rewarded with Bitcoins. 

Why Bitcoin is so valuable.???

Value of a commodity is derived from the demand and acceptance. Like Gold, People are willing to accept gold in exchange of cash. Much like this, Bitcoin is also slowly becoming a mode of transaction. And due to its limited nature of supply, people (traders) are willing to pay higher amount for bitcoin. Thus the Price of Bitcoin is Growing. 

What are the uses of Bitcoin.??

Investment : Investors are investing in bitcoin and cryptocurrency.

Trading : Bitcoin is slowly becoming a commodity of choice for traders. Traders also trade in bitcoin derivatives.

Mode of Payment : Due to its faster speed and lower fees, bitcoin is gaining popularity as mode of payment's for products and services. 

Benefits of Bitcoin..??

Anonymity: Bitcoin transactions can be done without revealing true identity or personal info.

Decentralized: There is no authority that monitor or regulate bitcoins. 

Inflation Proof: Bitcoin is created to be finite in nature. This prevents the chances of inflation. 

Faster transaction: Due to transaction's happen in electronic medium, the transactions are faster and cheaper than bank transfers.

Issue with Bitcoin.??

Volatility: The volatility of bitcoin is much higher than other tradeable assets. 

Scam/Froud: Bitcoin and crypto scams are becoming very common.

Unregulated: Due to unregulated nature, there is no legal remedies available in case of scam and fraud.

All details from Index Daily page