It is been eight years since the world has been introduced with Cryptocurrencies. But still, we can say that major part of the world population is yet to get awareness towards Bitcoins.
To be precise, cryptocurrencies are nothing but a digital asset in binary format used to exchange digital currencies. Though we have got a lot of cryptocurrency types today, bitcoins are considered as the father of all.
How is it useful?
They are just digital coins or currencies which can be transferred between two parties with the help of an Internet.
- This is useful because,
– None of the parties are required to provide any details about their identity. Means, there is no intermediate entity like a bank.
– A Bitcoin transaction is a direct peer to peer. The same can also be considered as a disadvantage also.
- It is safe because the whole transaction is being carried out by a sequence of randomly generated numbers between the two parties based on the block.
- Anyone in this world from anywhere can use this currency.
- It is the fastest and a secure way to perform a financial transaction digitally in the world.
What do we require to perform a bitcoin transaction?
- Internet connectivity.
- A valid and verified account status in any of the bitcoin buy and sell exchanges. For example, Koinex, Cex.io, Zebpay, Coinomi, Coinbase etc.
- Bitcoin mining software which can be downloaded from the internet for free.
- A Bitcoin wallet to store your coins.
Where can one use Bitcoins?
It can be used to do trading, purchase books, video games, servers, gifts and more. When it comes to trading it can be traded for currencies like Dollars, Yen, Euros etc.
With no role of a bank, where does bitcoins stay?
They are stored in digital wallets. Anyone can use it to procure something or to encash it to a required currency anywhere in the world.
Investing in Bitcoins?
Most of the bitcoin users feel that the purchase of bitcoins is the greatest investment they had made in their life. Just like the saying “The early bird gets the worm” those who had invested on bitcoins in the earlier stages are millionaires now in the world due to the steady increase in bitcoin value.
The process of pulling out the Bitcoin currency is called as Mining.
If your question is What Proof-of-work means?
Also known as a protocol, it is a measure to prevent the transactions from scams, hackers, and other abuses which are possible over a network.
Are bitcoins accepted or approved in all the countries in the world?
Not really, they are denied in China & Thailand. In the case of India, the investors are still growing but it is really treading in a positive way. Nearly 2500 + Indians invest in this digital coin on daily basis. But, it is to be noted that RBI had raised concerns about the legality and also warned the investors of India regarding the risks involved in investing in digital currencies.
Are digital currencies really 100% safe or uncrackable?
Hmmm… It is safe as long as the investor ensures that he keeps the confidential information safely and also consider changing the authentication passwords and keep the digital wallets updated. Kindly note that there was a security breach reported in the year 2012 for a loss of 50K from a digital wallet.
Other digital coins to invest on:
1. Ethereum coin
2. Ripple coin
3. Lite coin
This article is to provide the basic information and awareness about Bitcoins. The concept and the process involved in Bitcoins are a bit complex at least according to me. If you are interested in investing in Bitcoins for financial growth or profits, I strongly recommend everyone to analyze and research more about it before investing.