What is Bitcoin and Blockchain Technology?
Bitcoin is a digital assets currency and Cyptocurrency, that used as a payment system worldwide. This is invented by a pseudonymous unknown person named Satoshi Nakamoto in January 2009. The best part of Bitcoin that it provides minimal transaction fees than any online payment gateway system and managed by decentralized authorities.
This is also an open-source and developing platform. The value of One Bitcoin considers, how many people are mining it or investing in it, and its demand and supply. Also, there is a limit to Bitcoin that it can’t produce more than 21 million.
However, this website is started by a group of people and they maintain it without having any central authority. Bitcoin is free from physical contact and visible form. It works like any other virtual payment system.
What are Cryptocurrency and Blockchain:
Cryptocurrency is also a digital asset created and stored by Blockchain Technology and its cost supported by reserve currency like Gold, Dollar, and Fiat currency. There are many cryptocurrencies available:
1. Ethereum 4. Laxmicoin
2. Litecoin 5. Ripple
Blockchain is a record tracking platform of distributed computer systems for the Bitcoin transaction process that keeps all the data secure for future purposes in the Public and Private domains. But the main face of cryptocurrency is Bitcoin & 1 Bitcoin value is decided by the investment and transaction of people.
Blockchain is a technology used to store records and transactions of digital currencies, so all data can be secured.
In this method, cryptography is also usable and it is a method to making secure our transaction process, and perform the decryption process to make anyone information.
However, a large network of computers is used in this process which is managed by Data mining, which provides a system to Bitcoin or an online payment system to manage their transaction.
Why Digital currency evolved and what is Bitcoin Mining:
Bitcoin has produced due to financial and supreme crises in 2007 created by Government failure and the Banking diseconomy system. Some major groups started to lose faith in the Government Banking system because of higher transaction charges of E-banking, Card payment, MDR, and Interoperability issues.
Bitcoin mining is a process to set up a large-scale computer system for digital currency transactions and secure their connection for further use. Many data centers have been used in this process and they have been rewarded in the form of Bitcoin.
How we can obtain Cryptocurrency:
Three methods are available to use Cryptocurrencies.
1. Purchasing Cryptocurrency or digital waller method
2. Mining Cryptocurrency
3. Operate Blockchain
Taxes on cryptocurrency referred to as Short term capital gains and Long term capital gains.
Cryptocurrency history in India:
Initially, India along with Nepal, Bangladesh, Morocco, Algeria, Bolivia has banned cryptocurrencies. Also, the Reserve Bank of India directed all Indian banks, PPP, and Mobile wallet companies not associated with Cryptocurrency companies and peer-to-peer transactions.
In 2018 Indian Budget mention cryptocurrency as an illegal method and in 2019 Ministry of Finance Department of Economic Affairs has proposed a bill mentioning “Banning of cryptocurrency and regulation of official Digital Currency Bill”.
However, this ban challenged by the Internet of Mobile Association of India in the Supreme Court. They mentioned that the transaction in Cryptocurrency is not illegal and should be considered as assets, not currency.
On March 4, 2020, the Supreme Court of India lifted the ban of cryptocurrency and state legal in India.
However, In India, the government has launched an application Zapay to control the information of people who are investing in Bitcoin and with these statistics. However, it can lead to a centralized authority using this platform in India.
Cryptocurrency used by other countries:
In 2019, UNICEF structured a cryptocurrency fund to accept donations in Cryptocurrencies.
In 2018, the World Bank launched its first Digital bond name, Bondi.
China’s bank People’s Bank of China also launched its own digital currency.
In 2020, Facebook launched its cryptocurrency name Libra by its subsidiary company Calibra.
Positive aspects of Bitcoin:
The security of Bitcoin is full of advanced level as no one can hack the system of Bitcoin because it required a combined series or supercomputer to hack it. Also, the transaction information has recorded without any hamper. Its protocol also restricted to modification.
The transparency of using Bitcoin is catchy for everyone as anyone can review Payment card detail. But, when the transaction has done, however, the address can never be identified by the particular person.
We can use Bitcoin all around the world, no need for any merchant and intermediate to use this process.
A person having knowledge about Bitcoin and its chronology can run their business and be a Data miner of Cryptocurrency.
Negative aspects of Bitcoin:
Bitcoin has no central power so the law to protect consumer reserve cannot decide by one Nation. So the risk increase when it comes to decreasing the value of money.
Bitcoin can be created without personal information, so it may lead to Narcotics, Illegal trade, and terror funding, and Money Laundering. We can identify the details of the person’s transaction but never identified the actual information of a particular person. However, the value of Bitcoin is unpredictable so it is hard to estimate the profit for fraudulent purposes.
Scams under Bitcoin can’t be justified by the Consumer Protection Act. Because this is not under the government sector.
The cryptocurrency just depends on the transaction rate of how people investing in it.
If someone lost their digital wallet information, then their virtual currency will be wasted, because no one can access the passcode of Bitcoin.
Nowadays, Bitcoin is using by a number of businesses as virtual currency or people around the world on different platforms. However, in India, there is a restriction to use Bitcoin in place of currency but people can use them for their investing process.
Although, the biggest fear is that if the website goes down then all the investments made by people will be useless.
Also read – Why is every country supporting banning Huawei?
Also, if everyone starts to withdraw their cryptocurrency investment from this payment gateway system then the value of these cryptocurrencies may fall, because it totally depends upon, how much people invest in Bitcoin.