Cryptocurrency is a trend worldwide. Tweets, hashtags and feelings on social networks increase the price of bitcoin and alternative currencies. Surprisingly, bitcoin returned by almost 1600% last year. The market value of bitcoins reached $ 1 trillion for the first time. Currently, the price of bitcoin is $ 58,000. In India, almost 34.93.613.09
In addition to bitcoin, several new cryptocurrencies have recently been launched. That is, Dogecoin, Libra, Ethereum, Binance coiny, Cardano, Tether and others. Some people have also noticed that bitcoin is exaggerated and you should not invest in it.
$ 21 billion bitcoins are available. No one can reprint or make as they please.
What is a cryptocurrency?
Cryptocurrency is something that can be exchanged online for the purchase or purchase of goods and services. They are also called digital currency. There are many companies that issue and create their own digital currency, for example: Facebook Inc. issued in Libra. They are also called Tokens.
To date, there are at least 6,400 cryptocurrencies. Details can be found at CoinMarketCap.com, a market research and finance website. Cryptocurrencies are issued through the ICO as an initial coin supply. Speaking specifically of bitcoin, it is the best known and most valuable asset to deliver good returns. There are many opportunities for a sudden increase and a sudden drop in their price. Public sentiment and market conditions are also important.
One of the reasons for the sudden bitterness with bitcoin prices is that Elon Musk has invested $ 1.6 billion in it. Last year, bitcoin flew from $ 7,000 to $ 40,000. Last year, Warren Buffet invested in bitcoin. It then becomes an asset class.
Cryptocurrency versus paper currency
Paper money has a central authority that controls supply and circulation, which is probably the government itself, and we rely on it. That, we need some limited and decentralized money. Now, to solve these two problems, we have a cryptocurrency. Cryptocurrency is like a digital currency that can be stored on our computer and the Internet. You can also exchange it via the Internet itself. No bank or broker is needed. Bitcoin runs on blockchain technology, so it has a central ledger where it keeps accounts and transactions.
Where does bitcoin come from?
New bitcoins are created through a comparative and decentralized process called Mining. Bitcoin mining is like a digital version of gold mining. Minors often process transactions and are rewarded with a specific bitcoin network. These minors use powerful computers to compete for bitcoins by solving mathematical puzzles, and if you overcome or solve them, it will be even more difficult.
The number of bitcoins won by minors may decrease over time. That's why so many people hide bitcoins. The more people hide bitcoin, the more its value increases at a certain rate. So many people like to invest in it. This is how the bitcoin cycle works.
How can you buy bitcoins?
You can get bitcoins if you know the mining process and have the necessary knowledge. People often do not know the mining process to make money or collect bitcoins. That means we can buy bitcoins from the people who are hiding it.
If you love bitcoins, there is a private key and a public key. The public key is like an email address. You can share it with others so they can provide you with bitcoins and make transactions easy. The private key is your email and password. You do not have to give your private key to anyone. Here, too, you can't forget your password because it is related to the financial sector.
So if you lose your private key, it means you can lose all your bitcoins.
Advantages of cryptocurrency:
- It is decentralized so that no one can control it.
- The transaction is not restricted in any way. Which means it will apply to everyone regardless of nationality.
- Insure. This means that it provides an unchanging record of each transaction made on the network.
- Privacy. Transactions are anonymous.
- It is limited. So that no one can overprint the money according to the rush. There are only 21 billion bitcoins.
These factors tell us why people call it digital gold because it is a limited amount.
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