What is Bitcoin | Bitcoin History | What is Bitcoin Mining | Bitcoin Price


Today we will know What is Bitcoin and How Bitcoin works and I will also tell you whether Bitcoin is safe or not and what things to keep in mind before Investing Money on Bitcoin. Along with this, you will also know what is Bitcoin Mining and the Advantages and Disadvantages of Bitcoin.

-What Is BitCoin?

What Is Bitcoin? A Quick Starter Guide

Bitcoin () is a cryptocurrency invented in 2008 by an unknown person or group of people using the name Satoshi Nakamoto and started in 2009[ when its implementation was released as open-source software.

It is a decentralized digital currency without a central bank or single administrator that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries. Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a block-chain. Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies, products, and services. Research produced by the University of Cambridge estimates that in 2017, there were 2.9 to 5.8 million unique users using a cryptocurrency wallet, most of them using bitcoin.

Bitcoin has been praised and criticized. Critics noted its use in illegal transactions, the large amount of electricity used by miners, price volatility, and thefts from exchanges. Some economists, including several Nobel laureates, have characterized it as a speculative bubble. Bitcoin has also been used as an investment, although several regulatory agencies have issued investor alerts about bitcoin.

Want to know about Cryptocurrency Click Here

-How Bitcoin 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. Once bitcoins are owned by a person, they behave like physical gold coins. They possess value and trade just as if they were nuggets of gold. Bitcoins can be used to purchase goods and services online with businesses that accept them or can be tucked away in the hope that their value increases over time.

Bitcoins are traded from one personal wallet to another. A wallet is a small personal database that is stored on a computer drive, smartphone, tablet, or in the cloud.

Bitcoins are forgery-resistant because multiple computers, called nodes, on the network must confirm the validity of every transaction. It is so computationally intensive to create a bitcoin that it isn't financially worth it for counterfeiters to manipulate the system

-The country in which BitCoin is legal

  • Morocco
  • Nigeria
  • Namibia
  • South Africa
  • Zimbabwe
  • Canada (banned by banks)
  • Mexico
  • United States
  • Costa Rica
  • Nicaragua
  • Trinidad and Tobago
  • Jamaica
  • Brazil
  • Argentina
  • Colombia
  • Chile
  • Kyrgyzstan
  • Cyprus
  • Israel
  • UAE
  • Jordan
  • Saudi Arabia
  • Iran
  • Lebanon
  • Turkey
  • India (banned by banks)
  • Pakistan
  • China
  • Japan
  • Hong Kong
  • Taiwan
  • South Korea
  • Indonesia
  • Philippines
  • Cambodia
  • Malaysia
  • Thailand (banned by banks)
  • Singapore
  • Vietnam (not allowed as a payment tool)
  • Croatia
  • Germany
  • Poland
  • Austria
  • Czech Republic
  • Romania
  • Slovenia
  • Slovakia
  • Switzerland
  • United Kingdom
  • Australia
  • New Zealand
  • Ireland
  • Netherlands
  • Belgium
  • France
  • Luxembourg
  • Greece
  • Italy
  • Bulgaria
  • Bosnia and Herzegovina
  • Malta
  • Spain
  • Portugal
  • Sweden
  • Iceland
  • Norway
  • Denmark
  • Ukraine

-Countries In Which Bitcoin Is Illegal

  • Algeria
  • Bolivia
  • Ecuador
  • Bangladesh
  • Nepal
  • Macedonia
-Why Bitcoin is Illegal in some countries? 

While Bitcoin is welcomed in many parts of the world, a few countries are wary because of its volatility, decentralized nature, perceived threat to current monetary systems, and links to illicit activities like drug trafficking and money laundering.

-What is Bitcoin Mining?

There are three primary methods of getting Bitcoins: getting them on an exchange, tolerating them for goods and services, and mining new ones. Mining is a procedure of adding transaction records to Bitcoin's open record called the Blockchain. It exists with the goal that each transaction can be affirmed, and each and every client of the network can get to this record. It is additionally used to recognize genuine Bitcoin transactions from endeavors of re-going through cash that has just been spent elsewhere. 
The Blockchain is alleged because it is artistically a chain of blocks, which are arrangements of transactions made during a set timeframe. At the point when a block of transactions is created, diggers put it through a procedure. They apply a complex scientific equation to the data in the block, accordingly transforming it into a far shorter, apparently arbitrary succession of letters and numbers called a 'hash'. 
A hash doesn't just comprise of data from the block of transactions, some different bits of information are utilized as well. Above all, the hash of the past block put away in the Blockchain is incorporated. 
While it's generally simple to deliver a hash from an assortment of information like a block of transactions, it's basically difficult to comprehend what information was utilized just by taking a gander at the hash succession. In addition, every single hash is novel, and changing only one character in a Bitcoin block totally changes the hash grouping.

-Is it safe to use BitCoin ?  

In its ten years of history, Bitcoin, when used and stored correctly, has proven itself to be a reliable financial instrument when it comes to storing value, secure borderless peer-to-peer money transfers, and accessibility.
The protocol itself is sturdy enough to withhold even the most sophisticated attacks, and most of the bad news surrounding Bitcoin hacks are due to the third-party service providers like centralized exchanges, wallet developers, or private key mismanagement.
Of course, as with every other type of money, there are certain issues Bitcoin users need to know if they want to protect their wealth. These include Bitcoin price volatilitysecure storage of cryptocurrencyuse of insecure third-party services, and cybersecurity threats like hacking.
At the same time, we could also raise a question of whether it is safe to use dollars and other traditional finance tools, as most of the money laundering and other nefarious activities are still conducted using traditional money. The conventional financial systems have proven to be prone to economic bubbles and crises, and the government-backed money tends to significantly devalue over time.
Therefore, it is safe to use Bitcoin, especially if you're willing to take responsibility for protecting your funds on your shoulders. And since the technology is still in development, it requires time and effort to learn how to handle it.

-Things to know before investing in Bitcoin
How To Invest In Bitcoin In 2020?

  • Bitcoin’s Origins Are Unclear 

Bitcoin was created in 2008 by a person or persons using the pseudonym Satoshi Nakamoto. Nakamoto reportedly published the proof of concept for bitcoin in a cryptocurrency mailing list before leaving the project to other developers. 

The cryptocurrency community has several theories about Nakamoto’s identity, but they remain unconfirmed to this day. 

  • Bitcoin Is Pseudo Anonymous

One reason bitcoin has become so popular: users can send and receive cash without ever using any personally identifiable information. 

Yet each bitcoin transaction is logged along with an address that is forever linked to that transaction. If users use the same address for multiple transactions, all the transactions are linked together. 

If a person’s connection to that address is ever leaked or discovered, all of his or her transactions will be revealed. 

  • Bitcoin Is Decentralized 

In contrast to fiat currencies like the U.S. dollar and the Chinese yuan, bitcoin is decentralized, meaning it's not controlled by a central government or other entity. 

The pros of a decentralized system include the idea that cryptocurrencies can’t be seized or devalued by a central authority. 

The cons of decentralization include the fact that government or other entity backing the value of the currency — and there is nothing limiting access or use of the cryptocurrency. 

This lack of access, coupled with the pseudo-anonymous nature of bitcoin, has led to a surge in criminal activity. 

  • Bitcoin Is A Real Currency 

Despite its decentralized nature, bitcoin is the real currency in the sense that users can use it to easily buy goods and services. Companies like Microsoft Corporation (NASDAQ: MSFT), Expedia Group, Inc. (NASDAQ: EXPE), and Newegg are among the companies that accept direct bitcoin payment. 

  • Bitcoin Investors Have Limited Options 

Unfortunately, the Securities and Exchange Commission and other financial regulators globally have been extremely cautious when it comes to cryptocurrency investments. 

The SEC has repeatedly denied and delayed applications for a bitcoin exchange-traded fund, citing concerns over investor safety and lack of market liquidity. 

  • Bitcoin Is Extremely Volatile 
Bitcoin investors often compare the cryptocurrency to gold as a safe haven and hedge against fiat currency inflation. 
In reality, bitcoin and other cryptocurrencies are extremely volatile and unpredictable in the near term. 

  • Bitcoin Has Some Powerful Critics

Investors buying bitcoin are going against the advice of some extremely powerful voices on Wall Street. Warren Buffett has called Bitcoin a “mirage” and “rat poison squared.” 
Former Federal Reserve Chair Janet Yellen said Bitcoin is a “highly speculative asset” and “not a stable store of value.” 

-Advantages  & Disadvantages of Bitcoin 

*Advantages of Bitcoin

Payment Ease: 

  • Using Bitcoin it is possible to send or receive money anywhere on the planet any time, night or day. That is a huge advantage. 

  • The usual limitations don’t exist when transferring money across the world. Having to take into account festivals and holidays, for instance, is not part of the equation. 

  • You are the only one in charge of your money. There is no controlling authority in the Bitcoin system. 

Security/Control Issues: 

  • Bitcoin is a safe network as users are in control of their transactions. 

  • Traders can't charge the consumer extra fees and have it go unnoticed. Any extra fees need to be discussed with the consumer first. 
  • It is not necessary to supply personal information when making payments in Bitcoin. The transaction can be finalized without this information. 

  • People can't see your personal information which makes Bitcoin safe from identity theft. 
  • Your money is safe with Bitcoin owing to Bitcoin’s back up procedure. 


  • All completed transactions are accessible to everyone but personal information is not available. 

  • Your public address is what is viewable. Your personal information is not. 

  • Because of the Bitcoin blockchain, anyone can verify transactions at any time. 

  • The system cannot be tampered with by anyone or any organization because Bitcoin is cryptographically secured. 

Fees and Charges: 

  • At the present time there are no, or very limited, fees connected with Bitcoin payments. 

  • In order to get the transaction processed quicker, users might introduce fees. The higher the fee, the quicker it will move within the network. It will get prioritized. 

  • The use of digital currency exchanges that convert Bitcoins into fiat currency (legal tender, backed by the government that issued it) is helpful to traders. Bitcoin service charges and fees are usually much less than those of PayPal and credit cards. 

Fewe Risks for Traders: 

  • It is not possible to reverse a Bitcoin transaction. These transactions are secure and do not contain personal information. It is, therefore, safer in instances where fraud may occur. 

  • It is possible to trade even where levels of fraud and crime may be high. This is due to the Bitcoin blockchain, or public ledger which makes cheating very difficult. 

*Disadvantages of Bitcoin 

Awareness and Understanding: 

  • In order for people to benefit from Bitcoin and apply it in their lives, they need to become more educated and learn more about it. 

  • More networking is vital to get Bitcoin out there and have people talking about it. 

  • More businesses are getting involved with bitcoins as there are many advantages for them but the list remains pretty small in comparison to physical currencies. 

  • It is good that we see companies such as Tiger direct and Overstock accepting Bitcoin as payment. But it is just as important that their employees understand and are educated in the use of digital currencies. If not, they will not be able to help and direct customers on the use of Bitcoin for their transactions. 

  • Educating workers about Bitcoin needs to be made a priority. Only this way will they be able to help their customers. This may take time and hard work but workers do need to understand what digital currencies are. Without this knowledge, it makes no difference whether large companies accept Bitcoin as their staff don’t understand what it is. 

Risks and Instability: 

  • There is a volatility to Bitcoin because of the limited amount of Bitcoin available and the daily increasing demand for them. 

  • However, we will see with time this volatility will diminish. 

  • Also, Bitcoin prices will become more stable as more businesses and traders begin to accept it as a means of payment. 

  • At the moment Bitcoin’s daily price fluctuations are caused by events occurring within digital currencies. 

Development Stage: 

  • Bitcoin is still in its early stages of development with many of its features still in progress. 
  • In order to ensure that the use of digital currencies becomes safer and accessible, new services including new tools and features are being developed and tested. 
  • Bitcoin still has some way to go in its development until it reaches its maximum potential. 
  • Bitcoin is still in its early stage and like any other new currency, there may be teething problems and issues that need to be worked out. 

-Bitcoin Price History  

Bitcoin has had a very volatile trading history since it was first created in 2009. The digital cryptocurrency has seen a lot of action in its fairly short life. Bitcoins initially traded for next to nothing. The first real price increase occurred in July 2010 when the valuation of a bitcoin went from around $0.0008 to $0.08 for a single coin. The currency has seen some major rallies and crashes since then.

Post a Comment


Don't Spam
Don't Use Harmful or Abusive Word