Wednesday, 22 November 2017

What is Bitcoin? And where to buy Bitcoin?

Today most of the people have heard about bitcoin but most of them don’t know what it is?How it works?Where to buy it?It is legal or illegal? What is Bitcoin Mining? I will cover all the points here.So kindly read until the end.

There are two types of currency are available in the market one is Printed currency and the other one is electronic Currency or E-Currency.You know about Doller, Euro, Yen, Ken, Rupee these type of currency are available in the form of the note, coins and  E-wallet like Paypal, Payoneer, Paytm,etc. One of this currency may be available in your wallet or in your  E-wallet but bitcoin is completely different.Though it is called bitcoin neither you can see in the form of note/coin nor you can touch it physically.It is only available in the Electronic form and it will be stored online it is also called virtual currency and it is not controlled by any county or any bank.It is invented by Satoshi Nakamoto the Japanese man or Group in 2009.

There is no bank or any other controlling authority is involved in bitcoin due to which the value is reached today around 8100$(US Doller).For bitcoin transactions, there is no processing fee and you don’t need to give your real is not considered as currency by most of the countries government finance bodies or any Bank, It is just group of peoples who buy and sell mutually based on belief in it.

Now, you have one question here in your mind that If bitcoin is not considered as currency by most of the countries then why people are using it?Most of the peoples are investing their money in it and its transaction is very easy, there is no limitation and rules regulation for this type of transaction you can buy and sell illegal items also as there is no controlling authority. I have one bitcoin and you want to purchase then we can do one to one transaction.

Bitcoin price

How Bitcoin works?

When you purchase bitcoins you will get a secret number that will be stored online in your bitcoin wallet.You can use it to buy goods and services, some companies and organizations consider Bitcoin as currency you can purchase goods and services from these companies/organizations.

How to use Bitcoins?

You can sell bitcoins to the people who want to purchase.Some People buy it as an investment when the value goes up they can book profit by selling them.Generally, some peoples are treading one to one with each other using bitcoins as they have believed in it. The value of one bitcoin is around 8100$ UDS and it is fluctuating as there is no central controlling authority so, it’s very huge amount to spend if you want to purchase some items which are below 1 bitcoin.Well , you can spend the fraction of bitcoin called as Millibitcoin or Satoshi. It can be break up to 8 decimal points. If you divide 1 bitcoin by 1000 then it will become 1 Millibitcoin and if you divide by 100000000 then it will become 1 Satoshi.

Where to Earn Bitcoins?

There are two ways to earn bitcoins simply buy it or “get new through bitcoin mining”
1) How to Buy Bitcoins?
There are so many “Bitcoin Exchanges” available where you can buy and sell Bitcoins.There are some sites also selling and buying it like eToto , coinbase ,iq option , BITTREX , LocalBitcins , BITSTAMP etc.

2)Earn Bitcoins by Mining
There are fix numbers of bitcoins are available in the market to maintain its high value.Then how new bitcoins will come in the market? They come in the market by the mining only. Now let's discuss the Mining Process.

What is Bitcoin Mining?

How to buy coines

Suppose I want to sell bitcoin and one person is want to purchase it.I made the transaction from my end, now the transaction will not be successful until the verification will be done by the sender and buyer.As there is no controlling authority then who will do this verification process?Well, this verification process is done by the miners.There are very complex and difficult math problems need to be solved to complete this verification process, for this purpose you need powerful computers and GPUs or ASIC(Application Specific IC) to solve these math problems to complete transaction who solve these math problems first that person will get some bitcoins around 25 as rewards.This is the only one process through which New bitcoins come in the market.

Bitcoin Is legal or illegal?

Bitcoins are not accepted everywhere, some companies or organization may accept or some may not so it totally depends on the belief of the people in it. But you can buy or sell them easily completely transparent and secure transactions are done.So it’s difficult to answer the question about it is legal or illegal but the use of bitcoins could be illegal.
For example bitcoins can be used in purchase of illegal goods like drugs, weapons and some people invest their black money in the form of bitcoins as it is very difficult to find out the name of the person who buys bitcoin because to buy bitcoin person name is not required and there is no authority or banks are involved in the transactions. The transactions happen between two persons there is no other third person or authority will involve.
 I think now you can understand why the value of bitcoin is so high. If you have any question kindly write in the comment, I will try to answer your question and don’t forget to share the article if you like this article. 

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Mahefooz Khan is the owner of MKVidz360 website and Youtube channel also.He is a blogger and Youtuber from India.He writes the article on technology and other helpful information for peoples.

1 comment:

  1. Yes. Bitcoin is very popular. I strongly advise everyone to study this site Bitcoinbestbuy. There is a lot of detailed information about bitcoins.