What is Bitcoin? Complete Information

What is Bitcoin?

Bitcoin is the Digital Currency like Dollar, Euros, or other currency used as a payment source in many countries and distributed electronically. Bitcoin is a decentralized peer-to-peer network that enables to be sent between users without transferring through a central system such as a bank or any payment gateway.

The advantage of Bitcoin is that it can’t be printed, and its amount is limited, i.e., only 21 million Bitcoins can be created in the world. Anyone with a powerful enough computer can mine Bitcoin. But you require a powerful computer with a high capacity server for mining. When Bitcoin was introduced, it was ultimately a new and unique idea. The world’s first digital, decentralized currency that isn’t controlled by anyone at all.

As money like dollar, euros, with a controlled supply by a government, a bank, but in the bitcoin already decides its limitation that is not changeable.

Who Created Bitcoin?

Bitcoin was introduced as open-source software by an anonymous programmer or a group of programmer, the domain bitcoin.org was registered on 18 August 2008 and a paper authored by Satoshi Nakamoto. Satoshi Nakamoto implemented the bitcoin software as an open-source code, which was released in January 2009. A lot of rumor about the real identity of the Bitcoin creator, No-one knows who is Satoshi Nakamoto. It has been estimated that Nakamoto owns around one million Bitcoins.

Satoshi Nakamoto is the person who developed Bitcoin as a legal Bitcoin creator and starts implementation. He also organized the first blockchain database. He was the first to solve the Blockchain problem for bitcoin and rewarded Bitcoin. Nakamoto was active until December 2010. Many people have claimed bitcoin. Blockchain Expert says the Nakamoto had mined about one million Bitcoins. Before leaving 2010 when he handed the control of the code repository over to the open-source 

The question is in your mind is Who controls Bitcoin?

The Answer is Bitcoin is a decentralized way of transaction, an essential characteristic. When Satoshi Nakamoto handed the Bitcoin code control as an opensource, Gavin Andresen became the lead developer at the Bitcoin Foundation. Now it was maintained by a group of coders and run by an open-source of dedicated computers or servers around the world. The bitcoin movement is exceptionally transparent in that every single transaction is store in a public ledger known as Blockchain.

Characteristics of Bitcoin:

A bitcoin user sees the only amount of Bitcoins on his/her wallet and its transaction results. 

1. Blockchain: 

Bitcoin is based on Blockchain technology. The Bitcoin blockchain is a public ledger that keeps all the records of Bitcoin transactions. It is implemented as a chain of blocks, each block containing a hash of the previous block up to the chain’s genesis block. A network of communicating nodes running bitcoin software maintains the Blockchain.

2. Secure:

Bitcoin funds are locked in a public key cryptography system. Only the owner of the private key can send bitcoin. Strong cryptography and the big numbers make it impossible to break this coding. A Bitcoin address is more secure than bank security.

3. Anonymous:

The bank knows everything about their clients essentially is the Account name, address, mobile number, credit history, and so on.

But in bitcoin, all are different. Neither transactions nor accounts are connected to the real identities of the person. You receive Bitcoins on bitcoin addresses, which are randomly coded in the hash of around 30 characters. Some people don’t want their finances to be governed or tracked by any kind of authority, activities like terrorism, hacking, drug supply, or other illegal activities.

4. Transparent:

 A single Bitcoin transaction that ever happened is stored in the Blockchain. Any transaction did your wallet address, and anyone can tell how much bitcoin is in it by examining the blockchain ledger. However, we can easily check all the transaction details of the particular Bitcoin address openly. Those people who want to stay anonymous with their transactions have advantages. 

5.Fast and Globally: 

The bitcoin payment completes instantly in the network and is confirmed in a few minutes or sometimes in a few seconds. You can send Bitcoin to anyone across the world. In comparison, a standard bank transfer can take up to several days. 

6.Charges:

The bitcoin transfer charges are negligible. While transacting through a bank takes a long time and fees comparable to bitcoin to reach the recipient.

Cryptocurrencies can’t be recalled

The main difficulty is once you send your Bitcoins to the wrong wallet address, after confirmation, there is no way of getting them back unless the recipient would want to send them back to you. So check the recipient’s address of payment carefully. When it comes to traditional currencies, most transactions can be recalled, as all it takes is one visit to the bank.

Is bitcoin legal.

In many government authorities, Bitcoin and other cryptocurrencies are still in the legal or in a grey area as it’s becoming more and more popular, law agencies, tax authorities, and legal regulators all over the world are trying to understand the concept of cryptocurrency and where exactly does it fit in existing regulations and legal frameworks.

The legal status of Bitcoin depends on, where you are in the world, and what you’re doing with it. Here’s our guide on legal issues concerning Bitcoin. Bitcoin is not getting a legal tender status in most countries, but some countries’ tax authorities have acknowledged its significance and proposed specific regulations. So many countries observing bitcoin as Bitcoin is a relatively new currency, the regulations frameworks governing its taxation significantly differ depending on the country.

For example, the United States tax service treats Bitcoin and all other prominent digital currencies as a property rather than a currency. Every taxpayer selling goods and services for Bitcoins has to include the value of the received Bitcoins in their annual tax returns. Miners are also subject to U.S. taxation, but only if the mining proves to be successful.

Is Bitcoin is safe Investment

After getting so much research on Bitcoin, we find that Bitcoin is a highly risky and high returning investment. Understand one thing, any investment that has more than 50% or more fluctuation in a day is not a safe investment. Investing in something that we cannot influence then it is the blind trick of not seeing anything that is going to happen. so invest that amount in bitcoin that you can afford to lose. 

Is Bitcoin a bubble?

Robert Shiller, a Nobel Prize-winning economist, proposed a strategy that helps determine if something is a bubble. Said definite increases in an asset’s price, surpassing public excitement, media craze, stories of people getting rich, and growing interest in the global public’s asset. Bitcoin checks all of the cases. So, in a way, Bitcoin is a bubble or not, and it has burst before.

In the year 2018, there was a massive sell-off pressure from January 2018 to February 2018 the bitcoin price remains half, while in some countries, it goes down about 70-80% because of its regulation. Many countries started to take strict action against money laundering in bitcoin. Not the bitcoin goes down, but also, other cryptocurrency goes about 80-90% down. So we can say 2018 is a bad year for all cryptocurrency users. Now bitcoin again going up and breaking all the records.