Types of Cryptocurrency and Bitcoin: You must have seen many forms of money, i.e. currency, such as Rupee in India, Dollar in America, Pound in Britain, Euro in Europe, etc. You must have seen all this currency in the form of pieces of paper, and you can touch it with your hand, keep it in your pocket. Wherever you go in the world, you have to use the currency of that place. In such a situation, digital payment is getting encouragement today.
Because of this, the period of such a digital currency has begun, which you can’t see, can’t contact, however it has turned into the most significant currency in the present time. That currency is bitcoin. It is an overall cryptocurrency and digital installment framework. One might say that assuming the Internet was the name of a spot, it would be the public currency of that spot. Data about this is given here.
What is Cryptocurrency?
First of all, let us know about cryptocurrency; it is a kind of digital asset, for which cryptography is used. Also, it is generally used to buy goods and services. It originated with bitcoin. And, it acts as a “peer-to-peer electronic” cash system. It can be used with the help of the internet. With its help, money can be kept hidden very easily. There is no need to go to any bank or other government institution for its use. Therefore, with the help of cryptocurrency, you can easily hide and keep your money.
How Many Types of Cryptography?
There are about 1000 cryptocurrencies available at the moment, but there are some of them, which are used a lot. Important cryptocurrencies are being described here.
Ether and Ethereum
It is used as an interchange currency. Ether is a kind of token. It is used for transactions under the Ethereum blockchain. Litecoin: It was invented in the year 2011. It also works with the help of decentralized technology like the named coin. With its help, bitcoin works much faster. Dash: The Dash cryptocurrency was invented in the year 2014. Its initial name was Dark Coin. It works with the help of a network called ‘master node’. This network is faster and more efficient than bitcoin.
It appeared in October 2016. This is a new type of currency in this region. During its use, all the information is encrypted, yet it cannot be used for ‘double spend’. Monero: This is also a special kind of cryptocurrency. A special type of security is used in this, which is named Ring Signature. This happens a lot in the ‘dark web black market’. Some smugglers are using it for smuggling. Therefore, black marketing becomes easy by using it.
Bitcoin kya hai?
The bitcoin cryptocurrency is the first global decentralized currency for the use of the digital world. Anyone can use it anytime and anywhere. With the help of this, a person can send money to any other person anywhere without the help of any third party or bank. Therefore, you can send the amount from your bitcoin wallet to the wallet of another person. For this, you have to pay only two and a half sends (i.e., 1 rupee 67 paise). It is a kind of digital currency, which is created and regulated with the help of an electronic system.
This is an extremely quick method for moving cash. It is only an interaction between two individuals, so no third individual is needed in it. In its exchanges, cash comes as codes in your bitcoin wallet. This isn’t printed currency. It is ready by individuals themselves. With this, a decent business has started from the very beginning the world with the assistance of PCs. That is the reason PCs have turned into a need today.
It was first released as open-source software in January 2009 by Satoshi Nakamoto. He is a programmer. Nobody knows about it. Different people have been claiming to be Satoshi Nakamoto in different places, but to date, its real programmer has not been found. In today’s time, many such programmers are engaged in making it more secure and strong. Its original purpose was to issue money from one place to another without the help of any third party or any central authority. Software related to this has been prepared all over the world. On May 22, 2010, 10,000 bitcoins were offered for a pizza for the first time. At that time the price of 1 bitcoin was 10 seconds or less, but today its value has increased a thousand times. Due to being bought by more and more people, its price is continuously increasing.
5 years ago, the price of one bitcoin was Rs. But today its cost is around Rs 45,000. In India, the price of one bitcoin in 2015 was 14 thousand rupees, in the year 2016 it increased to 30 thousand rupees and today its price is 45,000 rupees. According to an estimate, next year, it could be up to 6 lakhs. Read more about Types of Cryptocurrency in the next paragraphs.
How Does Bitcoin Work
Its exchange is done by peer-to-peer technology; that is, this money directly reaches from one computer to another. It is sent as a blockchain divided among the common people. Like a bank keeps track of your money, similarly, these blockchains keep track of every bitcoin. That is, its transactions at any place in the world are accounted for on this blockchain. Since every transaction is verified, and the network keeps its records, it cannot be fraudulent. This technology is made secure by thousands of people who keep an eye on this transaction with the help of powerful computers. And check it out. For this, whoever successfully does it is given some bitcoins as a reward. This is called the mining of bitcoins.
Processing of Bitcoin
Thousands of people who verify this transaction in the code language act as clerks for the bank, and they are called miners. These people keep an eye on the transaction so that it is not misused. But while completing this process, these minors have to solve a math problem. Joe Minor solves this problem as quickly as possible. He gets about 12.5 bitcoins in return, and thus enters the digital market.
But, its economy has been built in such a way that after a while its number is reduced to half. Initially, 50 bitcoins were used to withdraw from 1 block. The number of bitcoins per block is halved every 4 years. That is, after about 125 years, the creation of new bitcoins will stop. By then, 20 million bitcoins would have arrived in the world. It will end soon, so people are competing to buy more and more of it.
It is a kind of software program, inside which bitcoins are stored and kept. In the true sense, it is not kept anywhere. A bitcoin has its own private number i.e. code, which is kept secure in the bitcoin wallet. With the help of this, we can easily take bitcoin or give it to anyone. It is similar to the mobile wallet.
Its legal right and wrong are decided based on which country you are living in and using it. It has been given legal permission in Japan, but it is still not given legal consent in many countries. In some countries, it has been kept in the ‘Grey Zone’, where neither it has been formally banned nor its use has been recognized.
It has many benefits, which are described below. Since it is digital, there is very little chance of fraud in it. If you have more money and want to invest somewhere, then most of the places you need the help of a third person. That is, if you want to buy land etc. with your money, then you need a lawyer, etc… but no third party is required while investing in it. Therefore, in a very short time, you can rest assured by investing your money here. This is the age of the internet. Therefore, at this time most people have the facility of desktop, smartphone, etc. Its wallet is very easy to use at this time. In the same way as the wallet of M-Pesa etc. is used. For this, very little extra charge is required to be paid. Bitcoin is free of transaction fees.
There is no authority or government to control it, due to which the price of bitcoin keeps on rising or falling, due to which investing in it can be a bit risky. If it is used between two people, then people also use it for wrong things like buying weapons, supplying drag, etc. Which can prove to be very dangerous. If your account is hacked by a hacker, you can lose your bitcoins; the biggest disadvantage is that you cannot get it back.
Why Use Bitcoin?
It can be used for many special reasons, which are described as follows,
There are several types of cryptocurrency, then why use bitcoin? In many countries where there is no capital control. Capital control means that it is not decided how much money can be sent out of the country and how much can be imported. In some places, people use it to send or order money over the country leverage. These people buy bitcoin and send it out of the country and convert it back into money. This is done in many gray areas. It is also used to hide personal wealth.
Some more well-off individuals who need to conceal their cash used to take asylum in Swiss banks prior, however, presently it is hard to store cash there. From that point forward, they have the choice of purchasing gold, precious stone, and so on, with the assistance of which they can conceal the cash someplace. Yet, this large number of things can likewise come according to the organization. So presently later bitcoin comes, they can without much of a stretch purchase bitcoin with their cash. It is a digital currency. Individuals who don’t approach the bank are utilizing it. Interestingly, it doesn’t need any card and so forth to utilize it. With its assistance, the exchanges don’t up close and personal, so there is no anxiety toward any sort.