What is bitcoin and how did it start?
Bitcoin is the most popular cryptocurrency. At present, the value of 1 bit coin is over 44 lakh Bangladeshi rupees. It is a kind of decentralized digital currency. Anyone can transact in bitcoin without revealing their identity. The key to bitcoin is that for some people having no control over the monetary system is better than the monetary system itself.
What is Bitcoin?
To get to know bitcoin better, you have to understand the pitfalls of today’s world-centric economy. We deposit our hard earned money by relying on various banks to keep the money safe. But some corrupt bank officials are playing with customer’s money. The 2008 global economic recession is one such example. The money deposited by the American people is borrowed from banks and some businessmen invest in very risky businesses. Naturally, they could not repay the loan due to business losses.
As a result, there was a terrible recession all over the world. Banks or borrowers are not only responsible for the recession, but also the misguided policies and mismanagement of the US government. Because the world economy is tied together.
So it did not take long for the US recession to spread to other countries. Many institutions went bankrupt in that economic downturn. Then the American public became angry at the big banks and the government. Because many old centrally controlled financial systems caused this collapse. In such a situation, a new type of currency system was introduced which is called cryptocurrency.
And the first experimental currency of this cryptocurrency is bitcoin. Bitcoin was born to run an independent economy without the management and government intervention of all kinds of financial institutions, banks and the government. This money is not limited to a few individuals but bitcoins are controlled through computer networks of countless individuals spread across the globe.
The bitcoin.org website was registered on 16 August 2006. In November of the same year, Satoshi Nakamoto published an article describing what bitcoin is and how it works.
When is Bitcoin Transaction Start?
In 2009, he started a bitcoin transaction by giving 10 bitcoins to a man named Nakamoto Alfie. Bitcoin is a peer-to-peer system which means that bitcoin transactions are carried out directly between the computer network of the sender and the recipient. so no organization is needed here
It is not possible for anyone other than the person doing the transaction to control this system. Cryptography is the process by which financial transactions are completed in cryptocurrencies such as bitcoin. The authenticity of the transaction is verified by cryptography. Bitcoin cryptography is done through the blockchain.
Blockchain is the driving force behind bitcoin:
Blockchain is a kind of open ledger. No one can make a difference like a corrupt banker if he wants to. In order to produce new bitcoins, it has to go through a very complex computing process called mining.
What is Bitcoin Mining?
Until a few years ago, mining could be done on ordinary home computers. But currently to reach a profitable position by mining bitcoins, crores of rupees have to be spent to build a small data center.
The number of productions can never exceed 21 million. Each bitcoin is divided into 100 million parts, these are called seven hundred. After 2140, no new bitcoins can be created.
Reasons for the rise in the price of bitcoin:
Just as people’s trust in gold has driven the price of gold up, so the increasing volatility of people on bitcoin has brought it to its current level. Since 2013 the bitcoin price is increasing day by day. People started using bitcoin as a stock market. Then there is the urge to buy bitcoin at a lower price and sell it at a higher price.
Over the past few years, bitcoin has been selling at a higher price than expected. In 2010 the price of one bitcoin was only 0.08 which is equal to 5 rupees. In 2016, the price of the same bitcoin was 75 lakh Bangladeshi rupees, which is worth 7 crore 24 lakh rupees. In other words, in just 6 years, the price of bitcoin has increased by almost 15 million times. At present the value of 1 bit coin is more than forty four lakh rupees.
The price of bitcoin almost halved in January 2016 due to a large number of suspicious transactions and fraud. Since then, many have expressed doubts about the true value of the cryptocurrency. However, the bitcoin market is now much more stable than before. Many large companies, such as Microsoft, Amazon PayPal and Starbucks, support bitcoin trading.
Bitcoin’s driving blockchain is extremely expensive to maintain. To maintain a blockchain system, such a huge amount of energy is consumed in comparison to the energy used in many countries.
Popular payment network Visa processes 24,000 transactions per second. Bitcoin, on the other hand, can only handle seven transactions per second. Effective exchangeability and currency quality stability Experts say bitcoin has neither.
Another important aspect of bitcoin is that there is no information about bitcoin transactions. So at one time people were involved in various criminal activities using bitcoins.
Bitcoin is being freely traded on a dark web site called Silk Road. Terrible drugs like heroin are being sold freely. In addition, bitcoin is being used in the black market and money laundering.
There are currently many bitcoin exchanges online. There you can convert any currency to bitcoin and bitcoin to any other currency.
The cryptocurrency bitcoin is banned in many countries because all money is obsolete without the approval of the central bank of any country. In 2016, the Grand Mufti of Egypt issued a fatwa stating that bitcoin transactions are not supported by Islam.
In 2016, Bangladesh Bank issued a notification banning all cryptocurrency transactions, including bitcoin. Recently, El Salvador was the first country in the world to officially recognize bitcoin.