What is Bitcoin?
Bitcoin is defined as virtual coin which stores its money on its own without any central authority. It is basically a form of decentralized cryptocurrency or so-called digital currency who has no single administrator. Bitcoin was invented by Satoshi Nakamoto in 2009.
Bitcoin is derived from the term Bit and coin meaning shorter coin. The Transactions take place after getting verified by network nodes. The transactions are recorded in the form of the blockchain. As there is no intermediary, so the transactions take place directly between clients.
Starting in 2009 with $1 price Bitcoin has risen to 16461.17 US Dollar today in 2017. After Bitcoin, many cryptocurrencies came into existence but are named as Altcoin. Some of the Altcoins are unicoin, etherenum, Litecoin, Monero, Zcash etc.
How can I store Bitcoin?
Storing bitcoin is also one of the Major Issues. It is stored in Bitcoin wallets. We all know Bitcoin is not an object, It is just a form of paper which own its unique key. The key is specific to its location as well helps in protecting the wallet.
There are two ways to store Bitcoin. One is on the local computer or local storage and secondly is Cloud storage. If a person is willing to store the currency offline, he can store it on local storage whereas if the person is willing to access his money from anywhere, he can go for cloud storage.
Storing on Local storage is just storing on a piece of paper which has public and private keys printed on it. These keys are used to access the bitcoin. It is important not to forget where you placed your keys.
How Bitcoin work?
After Installing the Bitcoin wallet, Bitcoin address will be generated for you. This address is later used to pay and accept transactions. They act similar to physical money. Anyone can purchase goods and services online by trading from one wallet to other. The blockchain stores all the transactions and blockchain wallets calculate the balance after new transactions take place. Within 10 minutes of each transaction, mining is done and the transactions are broadcasted.
What is ‘Bitcoin Mining’?
Bitcoin Mining is the process through which bitcoins are released and the transactions are verified. After verification, the transactions are added to the blockchain. Anyone from the remote location can access the Internet and can participate in the Mining process.The process involves compiling recent transactions into the block and then solving difficult puzzles. The person who first solves the puzzle will be rewarded and allowed to place next block on the chain.
As there is no central authority to issue currency, so mining is considered a smart way to issue currency.
The Anonymity of user:
Bitcoins don’t allow user anonymity. Details of individuals are asked while they buy bitcoin. Details include PAN number, email address, government-issued ID cards etc. All the transactions that take place are recorded in blockchains even if the identity of buyer and seller is not revealed.
There are some ways to buy bitcoins by going anonymous too:
1. Local Bitcoins dealing
You can find a local person who lives near you and is willing to sell bitcoins. Use local bitcoins option to find someone relevant and then use an anonymous email address for the verification. The verification Id process is considered optional in this case.
2. The Bitcoin ATM option :
You can use Bitcoin ATM available near you and buy Bitcoins by just depositing cash. They shall ask to enter bitcoin address but you can specify that it is not available. Hence, they will generate a new address and you are good to go. Later, whenever you need to send the Bitcoins to anyone, you can generate a private key from your paper wallet.
3. Prepaid card option:
The prepaid cards one get from supermarkets and other stores can also be used to buy Bitcoins anonymously.
Bitcoins are not considered safe due to anonymous transactions. The anonymity of users is promoting drug deals and other illicit activities.
How can I buy and sell Bitcoin?
There are many different platforms which allow individuals to buy Bitcoins. Some of the widely used platforms are Coinbase.com, Bittrex.com, Localbitcoins.com, Cex.io, Kraken.com, Bisq.io, GDAX.com, Coinmama.com etc. To buy it you have to Click on Navigate settings after opening any of these platforms and then click on Credit/Debit Card”. Enter your Information there and confirm it. Now you can go to “buy/sell” option and select the number of coins you want to buy and sell.
You can also buy your Bitcoin with cash from exchanges that deal with cash acceptance for bitcoin or also using debit/credit card transfers.
Will Bitcoin succeed for years?
We can’t predict future but can make a rough Idea by looking into countries who have accepted bitcoin transactions.
It is now accepted in United States, Canada, Japan, Israel, Singapore, France, Netherlands, Italy, Switzerland, UK, Cyprus, and Belguim.
India has not started accepting any digital currency, But looking at the frequent rise and acceptance by most developed countries, we can say Bitcoin will go long.