Nowadays everywhere the buzz word ‘Bitcoin’ is humming around the ears. So I just wanted to give a brief introduction on What is Bitcoin ? How we can invest in Bitcoins ? and How we can earn it ?
When I first heard about this term Bitcoin, the first thought that came to my mind was the picture of a physical coin though I was incapable of imagining bits in it, I dared to imagine. As it is obvious when we were in a habit of hearing such word which we were used to relate it to our coins that we spend on buying stuff. Talking about physicality in currencies we have notes and coin. Yes this is a physical currency. You can touch it, feel it. And there is another money which we can see it in our accounts specifically bank accounts digitally which can be converted into hard cash.
Now this Bitcoin is a cryptocurrency also called as digital currency, virtual currency and it will remain digital only. Yes you heard it right the Bitcoin will remain digital only and cannot be converted or obtained in coins or hard cash physically. Informally you can say “money not in pockets but on software’s”.
Bitcoin The Gold 2.0
The increasing value of bitcoin makes it the Gold 2.0. Bitcoin was created in 2009 by pseudonymous developer Satoshi Nakamoto. Similar as we need to mine gold, bitcoins are created by mining popularly known as bitcoin mining. We will later discuss on Bitcoin Mining as it is a vast concept. People like to own the precious metal gold, because its value is not controlled by our government. Similar is the case with bitcoin. Its value is not controlled by government or any authority.
The availability of bitcoin is limited. Only 21 million bitcoins can only be generated and most of them are already here. It has been heard from the sources that already more than 75 percent of bitcoins are already mined. Due to this after all 21 million bitcoins are mined the scarcity will result in increased value of bitcoin. It has also been rumored from the sources that for foreign currency reserves, central banks are in a hustle to buy them.
Reasons not to buy Bitcoin
One reason is that the transaction is slow using bitcoin. Stores like Subway have accepted bitcoin as a payment method alongside hard cash and credit cards. The reality is right now if you pay through bitcoin you have to wait for 10 minutes for transaction to get clear where on the other side you can swipe your credit card and instantly clear your transaction.
Another reason is that all illegal transactions can be made in bitcoins, like for drugs or extortion fees on internet for which no one has control and keep an eye upon. One attribute of bitcoin of peer to peer transaction where no third party or government has control over it makes it a demanding currency. Bad guys harness it to do illegal transactions on internet. Recently cyber criminals who have launched “Wanna Cry” ransomware asked for payment in bitcoins.
Bitcoin prices are volatile. The yearly highest price chart is shown below.
2009 – $0
2010 – $0.31
2011 – $29
2012 – $13.51
2013 – $1147.25
2014 – $951
2015 – $462.23
2016 – $768
2017 – $15495
How to earn Bitcoins ?
Now this is the most interesting and the only point for many of the guys to read this article. So let us look upon How to earn or have Bitcoins.
To earn bitcoin there are two Methods.
1. One method is to buy bitcoins directly, which can be done directly by going to bitcoin website and buy directly from there or there are also other third party exchange companies which will help you buy and will charge some fees.
2. Second method is by Bitcoin Mining. Bitcoin mining is the process where miners are get paid by newly generated bitcoins. This miners verify
a bitcoin transaction that takes place. In return as a reward they are paid with newly generated bitcoins.
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