Have you been wondering what BITCOIN is? Have you come across complicated words like crypto-currency or worldwide payment system? Have the newspapers been adding on to your confusion?
So, let’s clear out this major confusion today. BITCOINS are nothing but, currency sold on the internet, which can be used to either make international purchases without any actual exchange of cash, thus preventing currency exchange for international travel or they can be sold to other people, just like shares which are sold back when the price goes up.
BITCOINS,BITHUMBS, RIPPLE, ETHEREUM are all different forms of cryptocurrency which use cryptography to secure its transactions, to control the creation of additional units and to verify the transfer of assets. Cryptography in common terms is the use of secret coded language often illegible to experts of high level of intelligence, which is used to send or receive information.
Developed in 2009 by Satoshi Nakamoto, the pseudonym of an unknown 42-year-old Japanese, BITCOINS are produced by the cryptocurrency system at a rate which is defined by the system itself and is known publicly. There is no printing involved, neither are there any banks. It has been developed with the sole reason to exclude the middlemen from any sort of transactions that are made over the internet such as banks, wallets or anyone else, thus ensuring anonymity to the financial transactions made. Initially used in the darknet to make purchases and transactions ensuring complete anonymity, these BITCOINS rose into prominence in the past three years and have touched sky rocketing prices.
India has however been hostile to cryptocurrency and has deemed it not a legal tender and that there will be no protection to those indulging in BITCOIN transactions. Anonymity being attached to these transactions; our government takes a back step when it comes to the legalization of these cryptocurrencies.
There are nearly 11 known cryptocurrency agencies that are functioning all over India and there is a likelihood of Reliance entering crypto currency as well.
Peter Thiel, founder of PayPal “I do think Bitcoin is the first [encrypted money] that has the potential to do something like change the world”