What is Bitcoin?
Bitcoin is a cryptocurrency which we cannot touch and see if you want to purchase or sell the bitcoin you’ve to open bitcoin wallet account first and then you can transact. It’s also known as Peer to Peer electronic cash system and Digital Payment System also.
There is no proof that who invested this bitcoin but sources say a Japanese called Satoshi Nakamoto is invented this currency for the first time on paper in 2008 and given to his client. Afterwards, it becomes digital currency and till no one knows about Satoshi Nakamoto.
Bitcoin runs on SHA-256 algorithm, bitcoins mining by miners through an SHA-256 algorithm, if you transfer some bitcoins from your wallet to seller bitcoin wallet account, those coins immediately not transferred, first those will be formed as a block or equation, miners should solve this block or equation then only bitcoins formed and transfer to opposite person’s wallet. Depends upon this algorithm miners can mine 21 Million bitcoins only, as of now 1.6 Million bitcoins only in the currency market. Block or Equation – we can call it as cryptography Ash also.
You should have bitcoin wallet before buying bitcoins, from this wallet only you can buy or sell bitcoins, in India, you can buy or sell through websites like Zebpay, Unocoin, Bitsachs and Coin Secure etc. Omg! You don’t have bitcoins! But don’t worry you can still sell the bit-coins like short-sell in share market.
As per the government sources, it’s not a standard currency like Rupee (₹), Dollar ($), Euro (€), and Pound (£), etc…Mostly its air bubble since a lot of digital coins like Litecoin (LTC), Ethereum (ETH), Zcash (ZEC), Dash, Ripple (XRP), and Monero (XMR) etc. entered into the money market but no one is stable.
Our money will be safe if we invest in Bitcoin?
It fully depends on Investor who wants to invest in bitcoins and it may give you profits in short-term but not in the long-term because it’s highly volatile currency.
As we said already it fully depends on Investor interest and keen who want to invest should take a decision whether he/she should invest or not. If yes, he/she should know the basics about bitcoin through business newspapers, online, TVs and etc. next you have to take bitcoin wallet account and then you can start investing or trading.
We can purchase any product online and offline, but the seller also should have bitcoin wallet account otherwise you cannot purchase and we can change the cryptocurrency into normal currency from exchanges.
Bitcoin is legal or illegal?
Some countries accepted as legal and some are not. In India, government and RBI not accepted as a legal currency.
What are the most important things we should take care of before investing in Bitcoins?
- It’s unauthorized currency.
- Its decentralized means neither Government nor Central Banks controlling this currency.
- There is no physical form.
- There are chances to form black money because of no controlling this currency
- People become greedy to earn.
- If you lose the money no one will be responsible for your loss and even you cannot complain to anyone since its unauthorized currency.
- You may get very low ROI from Bank FDs but your money will be safe, in cryptocurrency, there is no guarantee.
- You cannot invest in bitcoin for long-term due to high fluctuations in the market
- Comparing with other investment products cryptocurrency is a high-risk product.
- Black Hackers may crack your cryptocurrency also.
- Very suspicious moment of rates.
- No standard rate in exchanges for the cryptocurrency.
- And it’s limited currency.
Key Points
- As on 8th December 2017 Bit-coin loses 15% and settled at $16,000 = 1 Bit-coin
- Reached max $17,000
- In India RBI & SEBI also analyzing on Bit-coin up and downs to favor investors to not lose their money with false investment plans since bitcoin is cryptocurrency.
- Bitcoin trading started in Chicago Board Options Exchange (CBOE) on 11th December 2017, entered at $15,000, max high $18,000 (INR 11, 70, 000 Approx.)
- Chicago Mercantile Exchange (CME) Group started Bitcoin futures trading on 17th December 2017.
