What is Bitcoin? Everything You Need to Know

What is Bitcoin?

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Bitcoin is a new kind of currency and system, it is also one of the first Cryptocurrency. It is a digital currency which does not require any central authority to control like government or central banks. Bitcoin has a technology known as Blockchain which records all the transaction that has taken place in the network. It is used as a currency, a store of value, an asset and as a payment network.

Also check: Best Hardware Wallets for Ethereum

At the time of writing,

Bitcoin-nepaletrend

1BTC

=799,967.19 Nepalese Rupee

=7,066.23 United States Dollar

=5,302.99 Pound sterling

=6,354.52 Euro

Who developed Bitcoin?

Bitcoin_nepaletrend

Bitcoin is developed by an unknown person with the name Satoshi Nakamoto in 2009 as an Open Source Software. The person who developed Bitcoin is yet unknown and only his name is known till date. He is believed to be a Japanese person due to his name.

How Bitcoin Works? Is it safe to use?

The main concern for investors is will the investment be fruitful. It is completely safe to use Bitcoin, as it is impossible to hack. Bitcoin network runs on a protocol known as Blockchain, which works as a ledger to record the transaction performed through its network. The blockchain technology is constantly reviewed by its users that makes it impossible to hack.

Advantages of Bitcoin? Why Should You Use it?

Here are the advantages of Bitcoin that can make you a Cryptocurrency lover:

• Send or Receive money from anywhere without paying for remittances.

• No need to worry about bank holidays and government taxes for transaction across the borders.

• You control your money, no central authority or bank involvement.

• No private information is shared and transactions are anonymous. Saves you from identity theft.

• You can keep your cryptos in your personal digital wallet with password protection.

• It can be backed up using the wallet’s backup phrase.

• The transaction is available to be seen by anyone using the Blockchain but private information is not shared.

• Bitcoin Protocol cannot be manipulated by government, hackers, organization, or any person.

• Low fee or no fee for the transaction within its Network.

• Users can include the payment for performing the transaction faster. Higher the fees faster will be the transaction.

• It is limited which is only up to 21 Million coins, so its value will rise with time.

Disadvantage of Bitcoin?

Everything has both positive and negative effects so as Bitcoin. Being a new technology in the world, it is not accepted by everyone. So here are some disadvantages that it has:

• People still are unaware of Bitcoin and blockchain technology.

• It is being accepted as a method of payment by businesses but still, the list includes relatively fewer names compared to physical currency.

• The main disadvantage is its volatility. Being a new currency, it is yet unstable. So it gives high risk to its investors.

• It is still developing and increasing its users over the world.

• Some countries like Nepal, Bangladesh, Algeria have banned Bitcoin. So its illegal to use Bitcoin in these countries.

Conclusion:

Bitcoin still has the highest value and can be beneficial for storing as a long-term investment as HODL. Since, its development, it has shown its strength in 2017 by getting raised its value up to ten thousands times higher than the value of its time of launch. There are many other Cryptocurrencies that has been developed after it which also have the high probability of being at the top. Ethereum, Lisk, BTC Cash, etc are chasing it since their development.

Disclaimer: Information given above is just for knowledge only. Do not take it as a reference for investment in Cryptocurrencies.

Also check: Best Hardware Wallets for Ethereum