“Bitcoin is Money Over Internet Protocol. Had it been released 10 years before, 9/11 would never have happened”.
“We should take this technology as seriously as we should have taken the development of the Internet in the early 1990’s”.
“Bitcoin will do to banks what emails did to postal industry”. – Rick Falkvinge.
From all cryptocurrency quotes, the last one is my absolute favourite by Rick Falkvinge, an IT entrepreneur and the founder of the Swedish Pirate Party, is confident that Bitcoin will completely change the way we use money. , I guess after reading this, most of you must be wondering what it is, how to use it, when will it come to use………etc, etc. And, before you’re mind gets flooded with anymore questions, let’s get you everything you need to know about this buzzing currency !
What Is Cryptocurrency ?
Cryptocurrency is a type of digital or virtual money. It is personified as ordinary money, such as dollars, pounds, euros, yen, etc. But it has no physical counterparts like bills, bank notes, paper notes or coins that can be carried around. This is, basically the money used in electronic form. Cryptocurrencies work using a technology called blockchain. Blockchain is a decentralized technology spread across many computers that manages and records transactions. Part of the appeal of this technology is its security.
Most Commonly Used Cryptocurrencies :
- Bitcoin Cash
Why Is Bitcoin So Popular among other cryptocurrencies ?
In the world of cryptocurrencies, bitcoin became the first modern digital currency invented in 2009 by a mysterious programmer named. He planned to build an electronic payment system that is not dependent on government or financial institutions and is entirely decentralised. Just like traditional currencies, bitcoin has value. No doubt, its market is highly volatile, and its value keeps on fluctuating a lot. The main reason behind the skyrocketing value of bitcoin is its pervasive usage across the world. Many businesses and individuals are using bitcoin as a payment method instead of traditional currencies. Most consumers are using bitcoin because of the high convenience and ease of bitcoin and ultimate security that block chain technology offers.
How can we start using them ?
These are some of the ways on how to invest in Bitcoins :
- Through a Crypto Exchange. A Cryptocurrency exchange is a platform which helps you buy and sell digital currencies such as Bitcoins, ethereum, etc. Unlike the stock exchange, crypto exchanges are self-regulated, and they operate 24*7 throughout the year.
- P2P Transaction. Suppose you are not interested in paying a transaction fee or using a corporate platform to facilitate your transactions. In that case, you can choose the P2P (person to person) mode of purchase.
- Bitcoin Mining. Mining is the source of earning Bitcoin. This process requires the miner to successfully add a block of transactions to the blockchain network for which the reward of new bitcoins is paid every 10 minutes. Every ten minutes, one miner succeeds in adding a transaction to the blockchain and hence earns Bitcoin through this process. Mining involves a high degree of complexity and requires you to have special purpose equipment making it an activity which is not everyone’s cup of tea.
The easiest way to Invest in Bitcoins – Crypto Exchange.
Buying them through an exchange is the simplest way. All you have to do is sign up with an exchange of your choice and complete the KYC process. This process involves verifying your documents such as PAN, Aadhaar, etc. Most exchanges have a strict KYC in place to avoid illicit usage of such currencies. Once you are a registered user, you can add money in INR to your wallet and use that amount to place an order for Bitcoin. In India, you can buy Bitcoin with a minimum capital of just ₹100.
What Kind Of Future Does This New Currency Holds For Us?
Predicting the future of the weird and wonderful world of crypto might be a tall order for even the most prolific of psychics. Just five years ago Bitcoin was recovering from its first crash and was trading at around £220 – with experts continually dismissing the cryptocurrency as a bubble. Between then and now, Bitcoin has hit the dizzying heights of around £15,000 in late 2017, followed by a hefty subsequent crash – dropping nearly as low as £2,500 one year on.
Recently, this Wednesday, 20th May, the cryptocurrency market suffered its worst crash in over a year last week, with leading currencies crashing as much as 30% in 24 hours after a bull run that began late last year took coins such as bitcoin and ethereum to all-time highs. Bitcoin’s price plunged by nearly 30% to almost $30,000 (£21,000) on Wednesday after Chinese regulators announced that they were banning banks for suing the currencies. But the selloff started last week after the Tesla founder suspeneded them to pay in bitcoins. Elon Musk, who is seen as a staunch supporter of cryptocurrencies, was also caught in a confusing exchange on Twitter about plans for Tesla’s bitcoin holdings that spooked investors. When it comes to the world of crypto, the only true certainty is uncertainty. When all it takes is twelve months for an asset to shed 80% of its market share, it’s a fool’s game to be making specific predictions pertaining to cryptocurrency prices in the future.
What we can be certain of, however, is that by 2025 there will be an abundance of technology that will allow cryptocurrencies to thrive.
“We have elected to put our money and faith in a mathematical framework that is free of politics and human error.”
– Tyler Winklevoss (Co-inventor of Facebook)
So, when are you investing ?
- https://www.forbes.com ›
- https://www.investopedia.com ›
- https://www.nerdwallet.com ›
This article was written by Nia Gajbhiye of SKNCOE, for ZeroGravity and edited by Ishwar Sarade, the Chief Editor, for ZeroGravity.
The flyer was designed by Navin Bhagat of SKNCOE for ZeroGravity.