Bitcoin aims to offer users a promise for successfully lowering transaction fees compared to the traditional mechanisms existing for online payments. Bitcoin is known to operate by a particular authority that believes in the concept of decentralization. Do you not know much about it? Well, fasten your seat belts now to continue with us on a ride towards clearing every question you have been bewilderedly contemplating for a while.
What is Bitcoin?
Bitcoin is considered one of the most renowned cryptocurrencies created in January 2009, completing 13 successful years in this day and age. It follows perfect ideas that are set up on paper by the mysterious and pseudonymous Satoshi Nakamoto. In the present times, the question regarding the identity of a person known to create technology remains answerless, a magical mystery, if one may say.
Bitcoin does not possess a physical existence. Instead, it balance transactions noted in a public ledger that is transparently accessible to every other person. Many computing powers verify a particular bitcoin transaction. Bitcoin is neither issued nor backed up by any bank or government, nor its existence has much value as a commodity.
In most of the different parts of the world today, bitcoin is not considered legal tender. However, it has indubitably gained popularity amongst people and triggered the process of launching hundreds of other cryptocurrencies used in this day and age that are commonly and collectively referred to as altcoins.
Converting btc to inr, 1 bitcoin today equals 46,90,677.49 Indian Rupee
Risks associated with the use of Bitcoin
Following mentioned are a few risks involved with the use of Bitcoin to any person or an individual company:
- Insurance risk
- Market risk
- Regulatory risk
- Fraud risk
- Security risk
The emerging aspect of the virtual currency is known to be novel to date about its existence. Compared to other traditional investments, Bitcoin does not possess an appreciative track record for a long term or a credit history. Still, it has become less experimental and has substantially increased its popularity with the passage of every day.