What is Bitcoin?
Bitcoin Blockchain is a system that allows payments to be made without going through a central party such as a bank or payment gateway. The currency that this system uses to make payments is called Bitcoin. It is created and held electronically. Bitcoins aren’t printed, like dollars or rupee – they’re produced by computers all around the world, using free software. This process is called mining.
Bitcoin is the first cryptocurrency. All the bitcoin transactions are verified cryptographically.
What is BTC?
BTC is a symbol to represent Bitcoin on exchanges. Just like AAPL is a symbol for Apple Inc. in the stock market.
Who created Bitcoin?
A pseudonymous software developer called himself Satoshi Nakamoto, released the bitcoin whitepaper in 2008. He proposed Bitcoin as an electronic payment system based on the mathematical proofs.
He explained Bitcoin as a peer-to-peer means of exchange, independent of any central authority.
To this day, no one knows the true identity of Satoshi Nakamoto.
If there is no company then who governs the Bitcoin?
Bitcoin is governed by its users, the bitcoin holders, developers and miners. Such type of governance is knowns as decentralized governance.
Is Bitcoin currency or commodity?
Based on the primary use of Bitcoin of transferring money and value from one place to another using the peer to peer network, Bitcoin can be said to be a currency.
Is Bitcoin a security or non-security asset?
In India, there is no clarity on whether Bitcoin is a security or not. In USA, the SEC chairman has clarified that Bitcoin is not a security because it acts as a replacement for sovereign currencies.
Just like INR, USD, JPY are not securities, Bitcoin may act as a replacement of these currencies. As per the definition of securities in most of the countries, Bitcoin does not fall under the security laws.
Is Bitcoin legal in India?
The state of Bitcoin in India is unregulated. It is to be noted that even though Bitcoin does not have a legal status in India, it is also not illegal to trade or store Bitcoin. There is an ongoing writ petition (civil) against the crypto banking ban by the Reserve Bank of India (RBI) in the Supreme Court for which Coindelta is one of the petitioners.
What is Bitcoin address?
A Bitcoin address is an identifier of 26-35 alphanumeric characters, that represents a possible destination for a bitcoin payment. Addresses can be generated at no cost by any user of Bitcoin.
Just like you require a mobile number to transfer money in PayTM, you need a bitcoin address to transfer Bitcoin from your wallet. Example of bitcoin address is 1KnvMd8pZ42uD8oqa7x7dEcA8JyGxi6sHs.
What is Bitcoin mining?
Bitcoin mining is the process of verifying, storing and securing Bitcoin transactions. Through bitcoin mining, you can verify transactions, put them into blocks and in the process, generate new bitcoins.
How to start bitcoin mining?
Follow the steps below and you can become a bitcoin miner yourself
Get the Bitcoin Mining Hardware: The first step to start Bitcoin mining is to purchase the mining hardware. You can mine using CPUs and GPUs. But miners get even faster. Instead of using CPUs and GPUs, they use specialized Bitcoin mining hardware called ASICs (Application Specific Integrated Circuits). So, if you want to win the race and mine Bitcoin now, you’ll need an ASIC.
Join a Bitcoin Mining Pool: There are two ways that you can start Bitcoin mining. One is to start by yourself, which is called solo mining. Another way is to join a group of other Bitcoin miners – these are called mining pools. There are several bitcoin mining pools available that you can join. Once you join a pool, you can become a bitcoin miner ans start earning bitcoin.
Is bitcoin a good investment?
Bitcoin price has been increasing steadily since its launch. Let us understand whether Bitcoin is a good investment or not by looking at how bitcoin is different than traditional currencies such as rupee, dollar or euro.
Decentralization: The most important characteristic of Bitcoin is decentralization. Traditional currencies such as Rupee or Dollars are controlled by Central banks which are controlled by the government. The decision made by the banks and government largely affects the value of traditional currencies. Wrong decisions from these institutions can have adverse effects on currencies which in turn cause inflations. A recent example of such incident is Venezuela where the currency had been devalued by 1000%. The price of Bitcoin is driven by demand and supply and no institution or central bank can affect the price of bitcoin directly.
Limited Supply: Ever wondered, why has Gold so much value compared to Silver? Gold has a very limited supply as compared to Silver. Similarly, Satoshi Nakamoto designed Bitcoin in such a way that Bitcoin supply can never exceed 21 million ever. There can only be 21 million coins ever created. Central banks can print as many currencies as they want based on demand. While the limited supply of Bitcoin and its increasing demand make Bitcoin a very valuable asset.
How much is the Bitcoin price?
At the time of writing (Feb 9, 2019), the price of bitcoin in INR was Rs. 270,000.
Can you buy less than 1 Bitcoin?
Bitcoin is divisible in nature. The smallest unit of Bitcoin is called Satoshi.
1 Bitcoin = 100 million satoshi. So you can buy as low as
0.00000001 BTC. On coindelta, you can buy Bitcoin with even Rs. 100.
|Maximum Supply||21 million|
|Current Supply||17.52 million|
|All time high||$20,089.00|
|Bitcoin wiki page||Bitcoin Wikipedia Page|
Bitcoin ROIs by Year
Where can I learn more about Bitcoin?
If you want to learn about Bitcoin technologies, you can find good courses online for free. Coursera has some very good courses for beginners to learn about bitcoin and its technology. You can start with “Bitcoin and Cryptocurrency Technologies” offered by Princeton University.