Everything you need to know about bitcoin

In this article we cover the following topics :

What is Bitcoin? Where does bitcoin come from or How was bitcoin born?

What is Bitcoin?

Bitcoin is one of the oldest forms of digital currencies, forming part of the main payment system in most parts of the world.

Cryptocurrency is digital money. It is considered to be safer than real money. Cryptocurrency uses something called crypto to secure its transactions. Encryption, to put it in simple words is a way to convert understandable data into complex codes which are difficult for thieves. Cryptocurrencies are classified as a subset of digital currencies, altcoins and virtual currencies.

Bitcoin was the first cryptocurrency created in 2009. Later, there was a rapid increase in the number of cryptocurrencies created and some of them are Litecoin, Ethereum, Zcash, Dash, Ripple etc.

Where does bitcoin come from or how is Bitcoin made ?

One can get bitcoin by several ways :

Bitcoin mining :

Mining is an activity in which an individual (called a "miner") uses their computer prowess to break mathematically difficult puzzles. The process of cracking these puzzles, which are an integral part of blockchain technology, helps to preserve them. As a reward for this, the miner gets new bitcoins that are nothing but bitcoin creation.

Buying bitcoin :

Exchange bitcoin for real currency

Not everyone can be a bitcoin miner. Thus, you can consider buying bitcoin from bitcoin exchanges and storing it in an online bitcoin wallet in digital form. Unicorn, Bitxoxo, Zipay, Coinbase etc.

It will be interesting to note that at the moment, 1 bitcoin is worth about 4,42,777.10 US dollars .

Receive-consider the sale of goods and services:

Although this may not be a common phenomenon in some countries currently, there are a few entrepreneurs who accept bitcoins (instead of real currency) on the sale of goods or services.

Is Bitcoin legal?

Bitcoin is considered as a primary means of payment in countries around the world, but in other countries it is illegal and leads to 15+ years in prison!!!

Countries where bitcoin is illegal

The legal status of bitcoin varies greatly from country to country and remains undefined or variable in many of them. While the majority of countries do not consider the use of bitcoin itself illegal (except: Bangladesh, Bolivia, Ecuador, Kyrgyzstan, Iraq, Algeria, Nepal)

However, given this background, one can not conclude that bitcoins are illegal, until now, there has been no ban on bitcoins in the rest of the world.