Money has a long history. It has changed from time to time. First, it was wheat, then it was gold, and then paper money. And now this century is going towards a digital currency that is Cryptocurrency, especially Bitcoin. In the year 2021, 106 million people will be using Cryptocurrency worldwide.
What is Bitcoin?
Bitcoin is a digital currency. Satoshi Nakamoto is a pseudonym person who discovered bitcoin. It is a particular type of Cryptocurrency, crypto means secret, and currency means the means of trading. It’s called a cryptocurrency because, for its safety, cryptography is used.
The transactions that are recorded and validated on a blockchain are cryptographic proofs.
It’s a decentralized system where no bank or a third party is involved. It’s you and your partner you are trading with. No one can understand the coding of your bitcoins and know your balance.
The public ledger keeps the coding and secures the bitcoin transactions. Anyone can do the transactions without the involvement of a third person.
Bitcoin is the best way to reserve value. It is the best way of trading in this era. Not just suitable for trading but also for buying, selling, and exchanging. So, if you want to make money you can trade now in bitcoin whether you are a beginner or a professional trader.
Cryptocurrency is a digital currency and a medium of exchange. It doesn’t rely on anything. It’s an independent trading system. DigitalWallets are used for keeping Cryptocurrency safe.
The transactions are protected on a public ledger. The general ledger is not shared. It’s in codes which other than you nobody understands.
Bitcoin is the first Cryptocurrency. It is the most famous Cryptocurrency among 5,000 others existing in today’s world.
Cryptocurrency is also risky and also doesn’t exist in physical form. It isn’t easy because the value of bitcoin keeps altering.
Bitcoin price in different countries is:
In Pakistan, the cost of Bitcoin today is 8,684,810.60 per.
In India, it is 3,714,093.75 INR.
In Germany, it is 43,367.88eur.
In the USA, it is 0.000020 BTC.
The future looks pretty bright with such means of trading. A lot of people are earning money on bitcoin. It’s an effortless business.
Holding money in a digital wallet can be advantageous as if the value increases, you can sell it and earn a lot.
The smaller unit of a bitcoin is called Satoshi. The value of a Satoshi is 0.00000001. It was introduced in 2009.
The open coding of transactions on a ledger is called the blockchain. It’s simply a digital checkbook. It’s called blockchain because blocks are linked together like a continuous chain of previous and present cryptocurrency transactions.
Everyone has their copy for the records, and it keeps updating.
CEO of African cryptocurrency exchange, Buchi Okoro explains blockchain as, “Visualize a book where you write down the whole thing you spend money on each day, each page is similar to a block, and the entire book, a cluster of pages, is a blockchain.”
Peer to peer network
Peer-to-peer, aka P2P, is a network in which two devices share files, and it also gives access to the other devices. It is the connection of two Pcs.
In Bitcoin, it is an exchange of Cryptocurrency, of course, Bitcoin. It’s an extraordinary means of trading because it is without the involvement of a third party.
It is the direct exchange of money. This decentralization makes Bitcoin unique. Blockchain is used for safe and private trades.
P2P has more privacy than any other online transaction. Peer-to-peer trading is far more advantageous than all other centralized exchanges.
Many people nowadays are turning to decentralized peer-to-peer trade. More and more are recognizing this system.
Miner and mining:
There are two strategies to create bitcoins, directly investing or by mining, and mining is the process of producing Cryptocurrency.
Bitcoins are created through the system of mining. Very solving perplexed math questions makes them.
When the transactions are made, right after ten minutes, these are received by a collector called the mines. These are, of course, not done by humans.
The miners secure the whole process, and verification is only done after the mining operation.