WHAT IS CRYPTOCURRENCY?
● A cryptocurrency is a virtual or digital currency designed to act as a medium of exchange.
● Cryptocurrency is currencies which are created by computer codes,
● It is not redeemable in another commodity like gold and It has no physical form.
● As far as supply is concerned, it is not determined by any authority or central bank and the network is completely decentralized.
● It uses encryption techniques to verify the transfer of funds and to control the creation of monetary units. That’s why it is quite secure
● Litecoin, Bitcoin, Namecoin, and PPcoin are its examples
● Any cryptocurrency is created by ‘miners’ on a cryptocurrency network like bitcoin that answer difficult mathematical problems.
WHO FOUNDED BITCOIN?
This question has made everyone puzzled. There is no vast information accessible so far except that a man known as Satoshi Nakamoto conceptualized, developed and designed Bitcoins. Bitcoin is supposed to be as an exclusive cryptocurrency in the world, but there are a lot of secrets which exist behind its creation like was it designed by more than one person? who came up with Bitcoin? What was the real motive behind its creation? and who is Satoshi Nakamoto?
HOW CAN I BUY BITCOIN?
Bitcoin can be bought directly from other people via marketplaces and obviously on exchanges. You can pay for them in different ways, ranging from wire transfer to debit and credit cards to hard cash, or even with other cryptocurrencies, depending on where you are located and who you are purchasing them from
The starting point is to first set up a wallet where you can store your bitcoin – whatever your preferred method of buying, you will need one. This could be an online wallet (via an independent provider or either part of an exchange platform), a mobile wallet, a desktop wallet, or an offline one (such as a paper wallet or a hardware device ). Before deciding on which version best suits your needs, you should do some online research. You can find tips on how to use them as well as more information on some of the wallets out there. Keeping a string of characters and/or passwords safe is the most important part of any wallet is. In case you lose them, that means you lose control to access the bitcoin stored there.
HOW TO MOVE BITCOIN TO BANK ACCOUNT?
1. You can sell bitcoins on an exchange which is known as cryptocurrency exchange, such as Kraken OR Coinbase. This is the reliable way if you want to sell bitcoin and want to convert into cash in order to get cash directly to a bank account.
2. You can use a bitcoin ATM. There are presently more than 2,000 bitcoin ATMs across the globe. You can check it online is it is near or not. If Bitcoin ATM is near, you can use it to exchange bitcoin for soft or hard cash.
3. It’s better to get a bitcoin debit card. There are many websites which allow us to sell bitcoins and get a prepaid debit card in exchange.
4. If you find a person who is in need to receive bitcoin, you can directly sell it to them in exchange for fiat currency. However, this method needs having a bitcoin-seeking person whom you can trust.
HOW BITCOIN WORKS?
In order to understand how cryptocurrencies works, we need to understand two keywords — mining and blocks. Let’s discuss mining first, miners are people who control and secure the network by authenticating transactions. They ‘mine’ bitcoins just as a reward. As far as a block is concerned, a block is a bulk of online transactions on the network. Every block contains an unmodifiable and permanent record of each online transaction which is part of it, in addition to this, detail about the previous block it is linked to. A block needs to be connected to a chain of blocks because it cannot be formed independently. Miners gather the online transactions on the network and create a bundle known as a block. Let’s say two online transactions (normally, a block has more than thousands of transactions): David pays Alex 3 BTC and Egor receives 7.23 BTC from Erica. These two online transactions would be a piece of a block. The miners would then attempt to authenticate the online transactions, making sure that Alex and Erica have sufficient bitcoins in their wallet for the online transaction to go smoothly without any hurdle. Bitcoins are entirely virtual coins designed to be ‘self-contained’ for their value, with no interference of banks to store and move the money. Once you own bitcoins, they trade just as if they were nuggets of gold in your handbag and obviously possess value. You tuck bitcoin away and hope that their value increases over the months or years, or Bitcoin can be used to shop for furniture on Overstock, book hotels on Expedia, and buy Xbox games. In 2010, a bulk of merchants began accepting bitcoin in lieu of most accepted currencies. The pizza was one of the first tangible items which were purchased with the help of cryptocurrency. Nowadays, the amount of bitcoin used to buy those pizzas is valued more than $100 million. Bitcoins are normally traded from one trader ‘wallet’ to another. A wallet is a personal database that you store on your smartphone, laptop drive, somewhere in the cloud, or on your tablet.
BITCOIN FUTURE IN QUESTION
No one knows about bitcoin’s future as it is very complicated to predict anything on it. Bitcoin is mostly unregulated, but some countries like China, Japan, and Australia have begun weighing regulations. As far as taxation is concerned, governments are very much concerned about bitcoin as bank play no role in it. Moreover, governments are also worried about their lack of control over the bitcoin.