What is the exact meaning of the word “bitcoin” as the top search term on Google every year? That this term is being searched so heavily.
And what is bitcoin, exactly?
So, instead of using technical and complicated words about what is bitcoin, let us grasp it in layman’s terms. Why does anyone offer you money if you look all over the world? Anyone will give you money if you contribute some value or do some work in return for it.
Even at the office, you only get paid when you do something for the company or provide value to it.
A shopkeeper is also paid only when someone buys products from him. If you look around the globe, you will only find money if you add some value or do some job in return for it.
Money = value = trust, in a way.
And money has been represented by various objects over the years. Previously, people would get work done by providing wheat and grains.
Then, gradually, people became more interested in all those things that stay longer and have a great value, such as gold, but it was difficult to carry gold as well, so the government gave an option in which you do not have to carry gold.
You can deposit your gold with the government, and in exchange, you will receive a receipt. Based on that receipt, you can conduct transactions, and the same receipt will later be turned into paper money.
People used to put their faith in a government commitment to represent money.
“I promise to pay the holder this amount.“
The government promised that if you go somewhere with this note, you will get its worth, but if that is true, why doesn’t the government fix everyone’s problem by printing the notes?
If there are only 1 kg of onions left and everyone who wants to buy them has ₹ 1,00,000, the onions will go to the person who has more than ₹ 1,00,000.
As a result, the price of a potato exceeded one lakh. So printing the note by the government will not address the situation. it will only increase the prices
Only after all of the resources are exhausted will the situation be resolved. Then, gradually, paper money gives consideration to digital money.
What is CFS and what is the problem with the current banking system?
However, even with digital money, the most challenging problem was keeping track of transactions.
If money is taken from your account, it should be moved to someone else’s account. And it should not happen that money goes into another person’s account but is not deducted from your account.
A unified banking system was built to keep track of everything. However, there are drawbacks to this centralized financial system.
The money you save in banks is invested by the bank, and if that investment loses money, your money is at risk, like in the case of PMC Bank. People were unable to withdraw funds from the bank.
When Lehman Brothers, a financial institution, went bankrupt in 2008, the world experienced a recession. If everyone withdraws their money at the same time today, the bank will be unable to provide the funds. The amount in your account is simply a number that the existing bank keeps track of by rotating it.
You are, in a way, handing over control of your money to someone else. There is a lack of transparency here. And because this money is controlled by a few institutions, corruption is also a factor. Furthermore, the government has the authority to revoke the legal status of your money if it so wants. As we saw during the demonetization.
Who invented bitcoin & what problem can be solved by Bitcoin?
A document was published in October 2008, and the person who published it identified himself as Satoshi Nakamoto. Who exactly is Satoshi Nakamoto? It is currently unknown. As a result, the following document was proposed: How our current banking system can be replaced with bitcoin currency.
So what does it mean? It implies that our bank keeps records of all transactions using centralized systems and ensures that the transactions are successful. Its alternative may also be observed through Bitcoin currency.
Although various cryptocurrencies have entered the market, we will use bitcoin as an example. When you buy a product or make a transaction with Paytm, you receive some reward points. Generally, those reward points are only utilized within Paytm; if they are used outside of Paytm, you will be charged a fee. If this occurs, and everyone begins to accept it, the value of these points will rise, similar to how bitcoin has increased in value.
How does Bitcoin Work?
What is Bitcoin in 2 words, Bitcoin is a cryptocurrency, and the extent to which it will exist in the future relies on how it is accepted, in what ways people accept it, and where they accept it. Bitcoin is digital money with no real-world value. When you buy a bitcoin, you’re purchasing a unique bitcoin address that you’ll use to make a transaction with another unique bitcoin address. Bitcoin is a self-contained system that requires no programming or coding to operate.
What is Bitcoin Mining?
When we talk about what is bitcoin then this question is very important in this section whats exactly is bitcoin mining, Its algorithm is auto-run, but in order to execute it, a system and a computer are required. Thousands of computers are required at such a large scale, and a third party is required to maintain these thousands of computers.
However, if a third party is engaged, the entire situation will spin around and return to the same bank structure. The third-party will have complete control. To overcome this, the notion of bitcoin mining was born, in which people run algorithms on their computers and are rewarded with bitcoins if the transaction is successful.
Because this entire system is distributed and blockchain-based, the problem of giving power to anyone institute or entity or being hacked by someone is solved. If bitcoin miners continue to generate bitcoins in this manner, the situation will revert to what I described in the onions example: the inflation rate will rise.
To avoid this, it has already been determined that no more than 21 million bitcoins will be created.
How many bitcoins you will receive as a reward as a bitcoin miner is determined by how many people are mining bitcoins with computers?
In 2009, you could generate 200 bitcoins in 2 to 3 days, but today, generating one bitcoin will take you more than 150 years.
What is the Disadvantage of Bitcoin?
- The first point to mention is that it is not universally accepted.
- Second, because the government is not involved, a lot of illegal activities take place.
- The third feature is its extremely volatile nature, with its value changing every 30 seconds.
Assume you purchased a product and need to return it; the price would have changed during that time, and the shopkeeper will now face the problem of determining how much money he needs to give in return. Because there isn’t a mechanism for this. Because it is open-source, it is possible that some mechanism will be added later.
Bitcoin is Legal in India or not?
Most importantly, is bitcoin legal in India or not?
So the answer is that bitcoin is legal in India, now you can trade in bitcoin at 30% tax, but the government does not recognize it as a currency government considered it as an asset.
Income from the transfer of virtual digital assets or cryptocurrencies is taxable at 30% beginning April 1, 2022. Such income is taxable even if the taxpayer’s total income is less than the 2.50 lakh threshold limit. Furthermore, no deduction other than the cost of acquisition is permitted when calculating the taxable amount.
According to Neeraj Agarwala, Partner at Nangia Andersen LLP, the disallowance of expenses under Section 14A will take effect on April 1, 2022.
On 5 April 2018, the RBI issued a notice to all banks stating that you should not provide your services to any entity dealing in cryptocurrency. As a result, you cannot withdraw money from your bank account from a cryptocurrency exchange.
This was challenged in the Supreme Court by the Cryptocurrency Exchange, and the case lasted two years before the Cryptocurrency Exchange won. The RBI was then forced to remove its guidelines.
On March 4, 2020, a three-judge bench of the Supreme Court overturned the RBI’s April 2018 ban on dealing in cryptocurrencies such as Bitcoin.
How to invest in bitcoin smartly?
You can use bitcoin in two ways: first, you can use it to make transactions, but that depends on whether the other person accepts bitcoin or not; second, you can invest; in 2009, 1 bitcoin cost 0.04 paise. However, the price of a bitcoin today is more than Rs 29,55,026, so the return on investment is very high.
However, if the return on investment is high, so the risk is also high. If you invest in it with the expectation of becoming wealthy overnight, you will almost certainly lose money, but if you invest wisely, you can profit from it.
Which major investors have invested in it, and where is the best place to invest in it?
Elon Musk, Mike Tyson, Lionel Messi, Facebook, JP Morgan Chase, and Paypal have all invested in it. You can also invest in cryptocurrency; there are various cryptocurrency exchanges in India, one of which is BuyUcoin, in which you can trade into 140+ different cryptocurrencies; within six months, more than 5 lakh people have signed up for this app; when you sign up, you receive ₹100 bitcoins as a bonus, and security is prioritized throughout the app.
After you sign up, your KYC is completed in just a few steps, and you don’t have to invest a large sum of money; you can start investing with as little as ₹100 and that too without any charges and you can withdraw whenever you want.
Here you can read the full process of completing your KYC easily CLICK ME.
On April 23rd, 2020, their IOS app will be released, and if you recommend it to your friends who have an iPhone, you will be eligible to win an iPhone 11 and free bitcoin, as well as 1 lakh in gifts. Its interface is very smooth, and just like ordering food from Swiggy or Zomato, you can buy bitcoin with a single click.
What is Bitcoin Price Prediction in 2022?
It’s time to answer the most important question: what are Bitcoin price predictions for 2022 and the years ahead? Before we respond, it’s important to note the volatility and risk of bitcoin and the overall crypto market. No one can predict the trends of specific cryptocurrencies with absolute certainty.
Some experts, on the other hand, can accurately predict how Bitcoin will perform in the coming years. Bitcoin’s price is expected to rise by 350% by 2024, according to experts and analysts.
According to Crypto Price Forecast, there is an expectation for Bitcoin to increase by just under 150 percent by 2022, bringing its value to 76,52,465.00 Indian Rupee per BTC.
What is Bitcoin Price Prediction 2025?
Bitcoin price prediction for 2025 predicts that the leading cryptocurrency will reach all-time highs of $256,000. The coin’s minimum price will rise to around $215,0000 as a result of the modest growth. While the most conservative estimate should be around $276,000.
As you can see, there are numerous predictions that Bitcoin’s price will continue to rise, and history has shown a similar bullish uptrend. Bitcoin can undoubtedly win the race, and its value has been steadily increasing.
Also read:- What is Dogecoin & Doge price prediction?