What is Bitcoin and how does it work?
Let us start with a fascinating fact: Specific Bitcoin address sent 10000 Bitcoins to another Bitcoin speech in May of 2010. This specific trade is the first purchase that was made out of bitcoin and it was used to buy 2 pizzas by a man named Laszlo. Laszlo printed a post back in 2010 asking for someone to sell him two pizzas in exchange for 10000 Bitcoins. Well, someone did, and now the purchase price of both of these pizzas is worth more than 100 million dollars today.
Who Invented Bitcoin?
In October 2008 a document was published online by a man calling himself Satoshi Nakamoto. The record, also referred to as a whitepaper, indicated a way of creating a system to get a decentralized money called bitcoin.
Its core, Bitcoin is a transparent ledger with no central authority. What does that mean? Well, let us compare Bitcoin to the Bank. Because most money today is currently electronic the bank handles its own ledger of accounts and transactions. However, the bank’s ledger isn’t transparent and it’s stored on the bank’s primary computer. Just the bank has total control over it. At any point in time
I can sneak a glimpse to the ledger and see all of the transactions and balances that are happening. The one thing you can figure out is that owns these balances and who is behind every transaction. Everything is open, transparent, and traceable but you still can’t tell who’s sending what to whom.
Could Bitcoin Be Hacked?
Bitcoin is also decentralized; Together with Bitcoin, each computer that engages in the system can also be keeping a copy of the ledger, also known as the Blockchain. Therefore, in the event that you would like to take the system down or hack the ledger you’ll need to take down tens of thousands of computers which are keeping a backup and constantly updating it. There aren’t any real coins. After you ”Own” Bitcoin it means that you own that right to get a specific bitcoin speech record in the ledger and ship funds from it into a different address.
The issue of security has been a basic one for bitcoin because its development. On one hand, bitcoin itself is very tricky to hack, and that’s largely due to this blockchain technology. Since blockchain is constantly being reviewed by bitcoin users, hacks are unlikely.
On the flip side, but the fact that bitcoin itself is hard to hack doesn’t mean that it’s always a safe investment. There will be the possibility of safety risks at various phases of the trading procedure.
Bitcoin has many advantages over the current system. It gives you total control over your money. Together with bitcoin, you and you can access your funds. No govt. Or Bank can decide to freeze your accounts or confiscate your holdings.
The legal status of bitcoin (and related crypto instruments) varies substantially from state to state and is still undefined or altering in many of them. Whereas the majority of countries don’t make the usage of bitcoin itself prohibited, its standing as money (or a commodity) changes, with diverse regulatory implications.
Finance minister Arun Jaitley, in his budget speech on 1 February 2018, said that the authorities will do everything to stop using Bitcoin and other digital currencies in India for offender applications. He reiterated that India does not recognize them as legal tender and will rather encourage blockchain technology in payment systems.”
The government doesn’t recognize cryptocurrency as legal or money and can take all steps to eliminate using those crypto-assets in funding illegitimate actions or as an element of their payments system,” the finance minister said.
In 2019, a petition was registered by the Internet and Mobile Association of India together with the Supreme Court of India challenging the legality of cryptocurrencies and looking for a direction or order restraining their transaction.