Hello guys, So today we are talking about BitCoins. Our main topic on BitCoin – What is BitCoin? and How to Invest in BitCoin. So if you have been over the internet or for that matter news channels newspapers or even social media. There’s a lot of thing going about Cryptocurrencies or for that matter BitCoins.
So there is the lot there’s a hint of doubt about what it is actually and what people are trying to project it into. So I thought let’s make an article today on it. And give my two pieces of thinking on should you invest in BitCoins and what actually is BitCoins.
What is BitCoin?
So without further delay let’s see…
So I promise to keep this short simple less amount of technical terms and we’ll go part by part and I’ll try to answer as many questions I have seen around.
What is BlockChain in BitCoin?
So in order to understand BitCoin. You need to understand what is Blockchain! So a block can be considered as a piece of paper when you write data.
So here it holding the transactions and each paper has the address of the previous paper. So this way the entire paper makes a book.
Here we can call it as a Blockchain.
So now BitCoin is a separate concept where is Blockchain is a separate concept.
Now BitCoins stores the data that is the owner of the BitCoins or what transactions we are making on Blockchains.
So a BitCoin is a virtual currency that data is virtual. It doesn’t have any real market value.
If you consider gold you can say that a hundred grams of gold have a price of 30,000 market value. Whereas in BitCoins you cannot say that there is a base value of a BitCoin.
So as of now till date, there are 21 million BitCoins. Where you can buy these BitCoins you can send someone BitCoins or you can make purchases based on BitCoins form.
What is BitCoin Mining?
So what is BitCoins mining? Firstly suppose you to understand that the BitCoins data is not stored on a single PC.
It’s stored over a network of many systems or many PCs.
So What BitCoin Miners Do?
Suppose sender A sends some amount of BitCoin to the receiver B.
So these transactions need to be verified. Whether sender A actually has that number of BitCoins to send it to anyone. So this is the role of BitCoins miners.
Here the BitCoins miners come in they decode this entire transaction and verify the legitimacy of the transaction.
Again its encoded back and uploaded to the blockchain. After Done.
So this is how the entire BitCoin functions and this is what role BitCoins Miners actually plays.
So Can You be a BitCoin Miner?
It’s a little bit difficult right now! Because there is a huge competition and you would need a huge amount of electricity and huge computing power in order to be a BitCoins miner.
The huge computing power I mean high-end processors GPU and the entire costing of BitCoin mining up to 90% of the BitCoins mining cost is electricity.
So you’ll have to pay for that electricity and what do you receive in return?
So in return, you receive BitCoins for verifying the legitimacy of all these transactions.
Is BitCoin Safe?
So now is BitCoin safe? I wouldn’t have included this in the article itself but lately and been through a couple of posts and news channels. Wherein people are talking about BitCoins not being safe.
See if a person loses money in BitCoins it is because of the mistake of the vendor’s wallet.
Let me give you an example, if you lose some amount of money or if some fraud is done on your Paytm wallet will you blame Paytm for it! or will you blame the International rupee for it!
Why I am Telling You BitCoin is safe because it is based on a very complicated algorithm that is SHA-256 and trusts me it is literally impossible to break SHA-256.
There are exceptions!
Is BitCoin a Bubble?
Yes, BitCoin is a bubble. So how a bubble works?
BitCoins totally works like. If more amount of people invest their money in BitCoins the BitCoin price rises and if some particular day lot of people remove their money from BitCoins they sell their BitCoins the price is gonna fluctuate. It’s gonna fall down back.
A year back BitCoin stands at 29,000 rupees and currently, BitCoins is costing around 12 lakh or 13 lakh rupees.
How to Invest in BitCoin?
So there are a couple of sites I’ll tell you.
So first the most widely and popularly used option is Zebpay. I have been personally using Zebpay to trade on BitCoins.
The good thing is it has the least number of KYC documents and yes this totally safe and the sad part is there is a huge difference between the buying and selling rate of BitCoins.
The next best option is Coinsecure I have not personally tried it. But I could see the rates are pretty good.
So the previous two option was if you want to trade on BitCoins in India.
So the next one which I’ve found recently is BuyUCoin. Wherein you can trade on all types of cryptocurrency.
I’m still trying I have deposited money but I have not transacted anything. I am yet to make any purchasing one BuyUCoin. So I won’t give my review or opinion on that.
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