What is Bitcoin?
If Times has to come up with one defining phenomenon for 2017. It should be without a doubt Bitcoin. Bitcoin which started as a side project of few reclusive developers to build a new digital currency of the world is today the largest Cryptocurrency with a value which rivals value of many sovereign currencies. Bitcoin as a virtual currency has no physical existence but is solely created, operated and managed in the digital mode. Bitcoin by far is the most popular cryptocurrency as on today.
As per original architecture and white paper total, bitcoin supply is capped at 21 million coins. The algorithm for the Bitcoin is SHA256. It uses Proof of Work as the consensus system.
How is Bitcoin created?
The process that brings the Bitcoin into existence is called mining, whereby solving a complex mathematical algorithm in computers, a Bitcoin can be mined. The other way to own a Bitcoin is to buy it for the fiat currency.
Miners help verify transaction on bitcoin blockchain and as a result, are rewarded with bitcoins.
History and founder of Bitcoin
Bitcoin was invented in the year 2009 by an anonymous group called Satoshi Nakamoto. The identity of Satoshi Nakamoto remains unidentified but is presumed to be the top computer scientists and mathematicians.
A reward of 50 Bitcoins was generated for mining the first ever blockchain (genesis block) by Satoshi Nakamoto.
Advantages of Bitcoin:
• Decentralised Currency System
• Nominal transaction fee
• No taxation:
• Quick transactions:
Disadvantages of Bitcoin:
• Consequentially, the privacy and decentralized code have found an undesired implication of money laundering.
• Having no physical existence and entirely in digital mode, it is more prone to cyber frauds.
Best Bitcoin Wallets:
A wallet is a medium to store the crypto-currency. Extending the various modes of wallets, popular and renounced wallet options have been listed below:
• Ledger Nano S
• Mycellium Bitcoin Wallet
• Coinbase (Exchange Wallet)
Best Bitcoin Exchanges:
The Bitcoins after being mined are traded in the exchanges against the USD’s, Euros. INR’s etc. The popular exchanges that facilitate its merchandise are:
· Public Key: A public key is an address, that is given to the counterparty to receive the payment in Bitcoins.
· Private Key: A private key is a personal address that needs to be kept confidential and is put into the play while sending the Bitcoins in the account of others.
· Blockchain: A blockchain is a record of transactions being kept in the distributed ledger.