Techy tech---- Bitcoin??? ---- Part 1

Techy tech----- Part 1

Notice

Today ,we cannot live without technology, is the truth. We just can't leave our mobiles, laptops, pc's, ipods, ipads etc. Also nowadays we have started online banking. Everyday something new enters this tech world. These things accumulate and then we are confused . Also we don't know all of them. So we are here to explain it to you coming with this brand new series Techy tech. Here we will explain each and every minute things of all corners of this tech world in a very easy way. We will explain all the trending tech topics here. So today we are taking a popular subject---- BITCOIN.

Bitcoin?

 

FIG 2

 

FIG.3

 

What's it? Who is the central authority?

1) Basically Bitcoin is a currency which can be used world wide. We can trade Bitcoins in any country.

2) Fig.2 shows the founder of Bitcoin Satoshi Nakamoto who found Bitcoin in 2009.

3)In fig.3 you saw Indian Rupees which has a central authority of Reserve Bank Of India which looks after the generating of the currency notes and coins. But its not the case with Bitcoins. Bitcoins do not have any organization like a centralized bank to look after generating bitcoins.
4) Bitcoins are generated by 3rd party users by bitcoin mining.
5) Nowadays bitcoin mining has become very famous and every person wants to .

6) But why do we call it cryptocurrency? Scroll down to know about it.

Cryptocurrency?

1) So basically this is the term used for decentralized digital asset.

2) Decentralized digital asset tells us that it is a form of  digital money which does not have any central authority to control over it as mentioned above.

3) Cryptocurrencies are digital currencies, virtual currencies and alternative currencies.

4) Also Bitcoin is said to be the first cryptocurrency invented.

5) Now people have started trusting cryptocurrencies due to their blockchain technology and also due to its popularity. 

6) You will come across Blockchain technology further in this article.

7) We can use this currency for trading. 

8) Also we can exchange it with some merchants who accept cryptocurrency in exchange with goods without any online taxes.
9) Basically you can do all the things which you cannot do under bank transactions as they have a control over your transactions.

10) Without a central authority how does it work? Read further to find out.

Price or cost of Bitcoin??

1) India has various banks and government which has various people who come together to set the price of the piece of paper (fig 3) Rs. 2000.

2) Bitcoin being a cryptocurrency does not have banks or government to control over it and set the price of bitcoins.

3) So the price of Bitcoin is always fluctuating.

4) Last month price of one Bitcoin was around Rs.10,00,000 and this month 1 Bitcoin counts up to Rs.5,42,000.

5) So we should enter in this fluctuating world of bitcoins on our risk.

 

A note or a coin??

1) A bitcoin is a virtual currency and is stored in our mobiles.

2) The word bitcoin does not particularly mean that it should be a coin.

Working of Bitcoin/cryptocurrency---- Blockchain Tech.

1) This is a technology where 3rd party involvement is seen.

2) In this method there is a seller, a buyer, and a 3rd party.

3) The buyer has to buy an article named 'A' from the seller.

4) He decides to pay the seller by bitcoins.

5) From his account he sends a request to transfer 1 bitcoin from his account to sellers account.

6) The 3rd party involvement or the blockchain technology starts from here.

7) As there is no authority to look after the transaction so the 3rd party looks after it.

8) Here the party has a powerful computer and an app.

9) Here the powerful computer connects to the buyer and the app inputs the raw data which has some calculations.

10) Then the app works over it, and within 15 minutes it solves all the calculations and sends the money to the seller and makes a record of it.

11) Here the transaction is over.

12) The seller, buyer and the unknown party formed a block and similarly thousands of blocks are formed making it into a chain which is why it is known as blockchain.

13) The record made, is visible and so there will not be any fraud.

14) So this is how bitcoin works.

How to buy bitcoins??

Method 1.

1) We can directly buy a bitcoin by exchanging it with any currency.

2) Example-- If I want 1 bitcoin so I will give the cost of 1 bitcoin, which is  Rs.5,42,000, to the person having a bitcoin. So the person will take the money and give 1 bitcoin in return.

3) This is one method of buying bitcoins.

Method 2(BITCOIN MINING).

1) This method is known as bitcoin mining which is the most popular method.

2) Bitcoin has become famous only and only due to bitcoin mining.

3) During the transaction the 3rd party involved is due to this method.

4) When any 3rd party helps to carry out a transaction, the party gets a few number of bitcoins in return. That is why it helps the transaction to be completed.

5) The bitcoin that 3rd party gets is the reward for helping the transaction to be completed.

6) This getting of reward is none other than Bitcoin mining.

7) So the miners only need a powerful computer and a software for calculations to earn a lot of bitcoins.

 Notice 2.

We know that the session is getting a bit longer but keep the flow of reading. This is a very vast topic so it needs a lot of explanation. Don't stop and continue reading.

Why so famous??

Bitcoin became famous as people liked the concept of 3rd paty involvement. Also people got free bitcoins in return which had a great value in market. That is why it became so famous.

Where to use it and why to use??

1) Bitcoin is a very private thing. So no one can interfere in the trading matters.

2) Also there are no restrictions of any authority.

3) Its quite fast and safe process.

4) As it is saved online, there is no threat of stealing or the money being lost.

5) Also we get bitcoins free by bitcoin mining so why not to take advantage of it.

6) Now we will list the places where we can use it.

7) It can be used to trade in exchange of goods.

8) Also it can be used in our day to day lives for purchasing things.

9)We can also purchase things online by using bitcoins.

10) Nowadays many websites offer payments by Bitcoins

Spread it!

This is a very trending topic and many people don't know about it. Some people try using it and sometimes face huge loss. Please spread this article to make people aware about bitcoins. Copy the link ------ Copy me ------ and share it on all your social platforms. Hope you will do this favour. 

Conclusion.

Now we have come to know everything about the bitcoins. This is a good system but is not legal.

Some countries have not still made it legal . India recently banned bitcoin trading with banks in the 2018 annual budget deciding meeting. It has been done due to the fluctuation of its price. If today a person puts his or her bitcoin in bank and if the price increases one month after it, then the bank will have a loan. So to avoid such types of circumstances India has rejected it. We can trade among ourselves but not with banks. Also in our opinion we should not trade bitcoin as its price is not fixed.

It keeps increasing and decreasing resulting in huge loss. For some time it may give you profits but after a while you will have to face great loss if the price of bitcoin decreases.  But lastly its up to you to use it or not.

So here we end the session. Hope you understood the whole topic. We will continue bringing such unique articles in our academy. Also don't forget to subscribe to our website for such unique posts and unique series. Do leave a comment if possible.

Thanks.