CRYPTO CURRENCY DEFINED | WHAT IS BITCOIN | DIGITAL CURRENCY |

 concept of cryptocurrency 

On 31st October 2008 a Japanese called Satoshi Nakamoto had published a public article where he has proposed -

A version of electronic cash that would allow payments to be send directly from one  party to another party without going through any financial institutions. 

 So , it is a digital currency on which any government or private agency have no control. Unlike the US dollar which are controlled by US government , cryptocurrency has no controller.  

Our economic system is running by trust. The coins and currencies ( physical) have value in the countries because the high authorities have garanted them as a value. In every currency there is signature of the governer which clarify that the currency have some value in specific country.  Without that garanty the currency us only a piece of paper. 

Now we discussed that how powerful the government is. It has power to control the value and production of currency ( demonetization in India ) . We a normal person have saved or deposited their money in banks , the has been invested by the bank in other market shares of companies. Also bank passed loans to companies and individuals from those money. But many of the times some big bank money loan scam has been seen. 

The people who are in favour of digital currency don't want to give the currency control on government. 

Algorithm of cryptocurrency

All digital currency have a common data book called LEDGER. Copies of ledger is available on every computer system that has include in transactions. 

The people and heavy computer systems that combine to found new Bitcoin are called MINERS. To confirm the transactions miners have to solve various complecated mathematical equations.  These processes have done by very powerful computers ( mining process). After solving the problem the bitcoin has been has been verified by other co-systems and transactions has been done. 

In these processes a huge chain of computers has been included thats why it is called the Blockchain method. 

Crypto as an investment

The main use of this currency is in the form of investment , like gold - you are not carring the gold with you every where but still investigating on this , because we know that gold value and price is increasing. But some critisizers say that it has no real life existence like gold or real-estate.  

But what if i say Bitcoin as a mode of exchange. That means in so many places you can't go there eat bread and pay in bitcoin , it hasn't yet get that value. But still in many  of the western countries  so many hotels and restaurants have started accepting cryptocurrency as a alternative of real currency. 

But the real reason for not making the bitcoin or other similar currencies a actul currency is basically it tooks so many time to transfer ( as you know the Blockchain concept). 

There are other domains or areas where this digital currency can be far better than traditional currency. One of those is foreign funds transfer where currency is transferred from one country to another. Because banks charges a lot in these cases and with bitcoin this can be done with no cost. 

Future of cryptocurrency/bitcoin/digital currency

In covid where most the investment business models graph down rate , bitcoin has raised its value in a very unbelievable way. See the graph where in one year it has increased its value from more than 5 times.  

Realtime graph

Bitcoin in India

RBI on april 2018 has freeze out digital currency from banking system through a circular. But technically this is partially banned in India , RBI only cut out this from banking system. 

Negetive effects of Bitcoin

Crypto has some negetive effects mainly related

with money laundering and security. Criminals have deal drugs and weapons in this mode. And government have to face a lot of difficulty to decode the transactions. 

How to find a Bitcoin

Basically to own any digital currency there are two ways one is investigating , you invest and you will get bitcoin. And another way is to mine the currency. This phenomenon  is called BITCOIN MINING. 

Ok so in this process three things are included one is computer hardware , current price of that currency and electricity consumption. The computer systems that are used in mining are so expensive thats so many companies have installed mining farms ( system of a huge number of computers that collectively mine the coins ). The profit that had made depends on investment on systems and current cryptocurrency price. 

A lot of electricity has consumed in this process and a lot of carbon dioxide also released. Thats why currently Elon Musk has refused to accept crypto in Tesla where previously he has supported. 

How to invest?

Bitcoin investment strategy is slightly different than stok market. Here the price in increased when supply decreased and demand is on its all time higher position. When a big face has been invest on this its price increase. Recently Elon Musk has twitt on doge coin and its price has increased drastically because has perchaged .

Elon Musk tweet

Main technique to make more profit in crypto industry is to invest money when its value or market is decreasing. But people think that when the price is increasing is the best time to invest but when crypto value increase it has a great chance to market crash. 

Top cryptocurrency exchanges platform

• Wazirx 

 India's most biggest and trusted digital currency exchanges platform. The user experience of this platform is very rich. You will face no problem on coin exchange and investment. The trading fees on wazirx is 0.2% but if you pay the trading fees on WRX tocon which is its own coin then you will get 50% trading discount. Wazirx has more than 120 digital currency that has been listed on there site. Person to person system has been used here. KYC is required for registration. 

• Bitbns

More than 80 currency can be trade here. Systematic and user friendly interface of the platform. 

• CoinDCX

This platform has the most options for trading.

This platform provide margin training , leverage trading , landing option , future option. Very secured and approved platform. 

• Buyucoin

This is a experienced company and the trading fees is 0.24% which is slightly higher than other platforms but at the same time your investment will be super safe. 

• Zebpay
• Unocoin
• Giottus

From the above discussion this is found that this currency 💲 concept is partially accepted but slowly people are accepting this and investing on this.  So this is safe and can be the future of all currencies.  JAI HIND