The Ins And Outs of Cryptocurrency: Bitcoin

The ins and out of bitcoin

Welcome guys, we are again back with another exciting topic. Can not wait further to share with you all………

Haven’t you all heard about the news of the hacking of famous personalities Microsoft Co-founder, Bill Gates; Amazon CEO, Jeff Bezos; Tesla CEO, Elon Musk; former US president, Barak Obama and major brands such as Apple and Uber which occurred recently 15th July and there is now a huge roar on social media and news. So today we are also back with the current scenario trying to bring forth the matter about what is cryptocurrency and what is bitcoin…

Hope you all will find it exhilarating,

So, guys do you know that 1 bitcoin = 6,82,710.44 Indian Rupee?

What’s your feeling now? It’s like OMG!

Let’s try to illustrate broadly now :)

Let me start with the very basics:

So, what is cryptocurrency?

Cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double spend. Many Cryptocurrency are decentralized networks based on block chain technology. This decentralized structure allows them to exist outside the control of governments and central authorities.

Blockchains: The bitcoin blockchain is a public ledger that records bitcoin transactions. It is implemented as a chain of blocks, each block containing a hash of the previous block up to the genesis block of the chain.

History of BITCOIN:

The domain name “bitcoin.org” was registered on 18 August 2008. On 31 October 2008, a link to a paper authored by Satoshi Nakamoto titled Bitcoin: A Peer-to-Peer Electronic Cash System was posted to a cryptography mailing list. Nakamoto implemented the bitcoin software as open source code and released it in January 2009 Nakamoto’s identity remains unknown.

On 3 January 2009, the bitcoin network was created when Nakamoto mined the first block of the chain, known as the genesis block. The first major users of bitcoin were Black Markets, such as Silk Road.

What are the bitcoin wallets?

A Bitcoin wallet is a not a physical item but a software program for holding and trading Bitcoin. Wallets contain a private key for security. The key corresponds to the address of the wallet. The four types of Bitcoin wallet are desktop, mobile, web, and hardware. To trade in Bitcoin, a trader must establish a digital wallet. A Bitcoin wallet is analogous to a physical wallet. However, instead of storing physical currency, the wallet stores relevant information such as the secure private key used to access Bitcoin addresses and carry out transactions. A few known desktop wallets are Bitcoin Core, MultiBit, Armory etc.

How does a bitcoin works?

As a new user, you can get started with Bitcoin without understanding the technical details. Once you’ve installed a Bitcoin wallet on your computer or mobile phone, it will generate your first Bitcoin address and you can create more whenever you need one. You can disclose your address to your friends so that they can pay you or vice versa. In fact, this is pretty similar to how email works, except that Bitcoin addresses should be used only once.

So, can you actually spend it? And what can you buy with bitcoin, anyway?

You don’t need to worry about bitcoin overtaking the dollar anytime soon, but part of bitcoin’s ascension as the foremost cryptocurrency has been that now, whether you mine Bitcoin or buy bitcoin, there are a variety of places that will accept it as payment. Many of them are online, but you may be surprised to find that depending on where you are, you could be able to find a local bitcoin-accepting shop near you. Granted, you shouldn’t expect a sudden and rapid increase in stores who take bitcoin. It has a long way to go before becoming widespread.

*Recently, on 15th July 2020, A security incident involving some of the most prominent business and political leaders on Twitter duped people into sending at least $120,000 worth of Bitcoin to an anonymous online wallet, and more than half of that total has already been spirited to other accounts, according to a Bitcoin-tracing company. About $65,000 of the $120,000 collected from duped users has moved to other Bitcoin addresses, one of which has been active in the past and is registered with a U.S. exchange, Robinson said.

That money trail could prove useful to investigators in this case, since U.S. exchanges typically go through vigorous verification of user identities, and would probably have information on which name the account is registered under. About half of the funds the hackers acquired came from users in the U.S., a quarter from Europe and the remainder from Asia, Robinson said. Discovering the perpetrators could still take time and prove challenging.

Bitcoin is an attractive target for scammers because it can be used worldwide. While Bitcoin’s price dropped at the beginning of the Covid-19, pandemic, it has since recovered, and is up roughly 30% since the beginning of the year. (extracted from The Indian Express).

Advantages of Bitcoin:

Digital currencies allow users more autonomy over their own money than fiat currencies do, at least in theory. Bitcoin purchases are discrete. Unless a user voluntarily publishes his Bitcoin transactions, his purchases are never associated with his personal identity, much like cash-only purchases, and cannot easily be traced back to him. In fact, the anonymous bitcoin address that is generated for user purchases changes with each transaction. The bitcoin payment system is purely peer-to-peer, meaning that users are able to send and receive payments to or from anyone on the network around the world without requiring approval from any external source or authority.

Disadvantages of Bitcoin:

Bitcoin Are Not Widely Accepted. Bitcoins are still only accepted by a very small group of online merchants. Wallets Can Be Lost. Bitcoin Valuation Fluctuates. No Buyer Protection. Risk of Unknown Technical Flaws.

Let’s conclude our blog here for today, hope you all enjoyed it!

This is the last paragraph of the body. It was a real zinger, driving home my last point. Gosh, you must think I’m so smart right now. You’re on the edge of your seat wondering how I’m going to bring it all together. OK, here’s the last sentence of the last paragraph of the body I’ve hit you with some tough love; you’ve got to make a change.

OK, audience! Now it’s your turn! And let us know was the blog useful? And we will be again back with such new blogs soon! Stay tuned!