Bitcoin: An Introduction

What is Bitcoin?

Bitcoin is a new currency that was created in 2009 by an unknown person using the alias Satoshi Nakamoto. Transactions are made with no middlemen – meaning, no banks! There are no transaction fees and no need to give your real name. More merchants are beginning to accept them: You can buy web-hosting services, pizza or even manicures.aaeaaqaaaaaaaajoaaaajdfmogqyotliltvizdetndk4my04m2exlwjizjdmzmuzmzhlzq

Why Bitcoins?

Bitcoins can be used to buy merchandise anonymously. In addition, international payments are easy and cheap because bitcoins are not tied to any country or subject to regulation. Small businesses may like them because there are no credit card fees. Some people just buy bitcoins as an investment, hoping that they’ll go up in value.

bitcoin-why-new2

Acquiring Bitcoins

Buy on an Exchange

Several marketplaces called “bitcoin exchanges” allow people to buy or sell bitcoins using different currencies. Zebpay and Unocoin is the largest bitcoin exchange in India.

Transfers

People can send bitcoins to each other using mobile apps or their computers. It’s similar to sending cash digitally.

Mining

People compete to “mine” bitcoins using computers to solve complex math puzzles. This is how bitcoins are created. Currently, a winner is rewarded with 25 bitcoins roughly every 10 minutes. I will personally not recommend you to Mine bitcoin in India, as it’s not efficient, you need minimum around 1.2 lacs, and chances are your Miner will get burnt or your electricity and Internet expenses will cross the earned Bitcoin Amounts.

Owning Bitcoins

Bitcoins are stored in a “digital wallet,” which exists either in the cloud or on a user’s computer. The wallet is a kind of virtual bank account that allows users to send or receive bitcoins, pay for goods or save their money. Unlike bank accounts, bitcoin wallets are not insured by the Central Banks like RBI, FDI.

Anonymity

Though each bitcoin transaction is recorded in a public log, names of buyers and sellers are never revealed – only their wallet IDs. While that keeps bitcoin users’ transactions private, it also lets them buy or sell anything without easily tracing it back to them. That’s why it has become the currency of choice for people online buying drugs or other illicit activities.

Future is Bright: Soon going to be legal

Governments are concerned about taxation and their lack of control over the currency. Country like Japan has already made Bitcoin Legal, and country like India, Russia is looking forward to making it legal.

Also read: Where I can Buy Bitcoins in India?

 


Note: If you haven’t created an account on Zebpay or Unocoin or CoinSecure, you can grab the following referral code

Referral Code of Zebpay: REF06568678

Referral Code of Unocoin: U213061

Coupon Code of Unocoin: TTA200

Referral Code of CoinSecure: A67aTLwo7PNiLBysAU9h


8 thoughts on “Bitcoin: An Introduction

  1. Pingback: You can make Money from Bitcoins – We Learn to Earn

  2. Bitcoin has shown amazing growth during the last few years and there are now some that will claim that the success is about to end and Bitcoin plummet. Some of us continue support the concept of a user owned system away from the control of the financial establishment. We do not accept that Bitcoin is finished. We shall be sticking with Bitcoin and are quite confident that BTC will continue to rise faster than in the past.

    Like

  3. Bitcoin has experienced amazing growth over the last year and there are now some that are claiming that the success is about to burst and Bitcoin plummet. Those of us still support the concept of a user owned away from the reach of the banks. We do not believe that Bitcoin is past it’s best. We will be sticking with Bitcoin and are quite certain that Bitcoin will keep rising more steeply than in the past.

    Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s