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Rutuja Chandgude
Rutuja Chandgude

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Bitcoin

What is cryptography?

Cryptography is associated with the process of converting ordinary.plain text into unintelligible text and vice-versa.

It is method of storing & transmitting data in a perticular form so that only those for whom it is intended can read and process it.
It is digital form of cash.

Advantages:

1]No intermediary required.
2]No graphical barrier.
3]Less charges.
4]Very fast.

Disadvantages:

1]Transactions are irreversible.
2]Used for illigal activity.

Cryptocurrency is legal or illegal.

Their are two different things.

Cryptocurrency being legal &
Cryptocurrency being allowed as a legal tender.

Is Cryptocurrency legal?

yes!....Why?

On 6 April 2018 in India,

RBI imposed a banking ban on India banks to have a relationship with crypto companies.But the same banking ban which is lifted in 2018 by a suprim court decision,Indias supreme courts allowed banks to handle cryptocurrency transactions from exchanges and traders, overturning a central bank ban that deals the thriving industry a major blow. & because of it the indian bank also allow to have business relationships & banking services with an exchange. Then whats conclusion, trading on cryptocurrencys as on date is absolutely legal.Then whats the problem? ,Problem is that Cryptocurrency is an illegal tender of money.
What is BlockChain?

It is simply combination of block & chain.
What is block:

Block is nothing but database which stores a lot of information.No of transaction takes place & those information gwt stored in block. Ones block is full another block comes into picture.When this block starts it will pointout to the last transaction(second block basically pointout tothe last transaction).Third block will also pointout to the last transaction of the second block.Now all these blocks will be linked or tied together with the help of a chain & these concept called as BlockChain
Now their is question, if we want delete the data from one of the block, is that possible?..NO,why? Because third block was pointing out to the end of the second block if second block if second block goes away it will be easily understood that something is missing, so this can not happen.that's why the blockchain is immutable(unable to change).
What is Bitcoin?

Bitcoin is type of cryptocurrency.

Bitcoin was founded (Announced) in 2008 and Launched in 2009 by Mr.Satoshi Nakamoto.
Today, Bitcoin in one of the most popular coins among the cryptocurrencys species all over the world which is shown in image.

Alt Text

It cant be held physically in your hand because its digital currency.
How does Bitcoin Transaction Work?

How is the supply of indian ruppies.It is limited or unlimited, & correct answer is its unlimited Whenever government wants it can print more & more indian rupies.
What about Bitcoins:

The supply is Limited.Their are exactly 21 million bitcoins all over the world but out of that in circulation their are 18.6~million bitcoins which are in circulation.
How does a Bitcoin transaction work?

Bitcoin transactions are messages, like email, which are digitally signed using cryptography and sent to the entire bitcoin network for verification.Transaction information is public and can be found on digital ledger known as the 'blockchain'.

Their is no intermediary during transaction, then who will verify this transaction?
Their are thousands of people all over the world who will verify this transaction?
Their are thousands of people all over the world who are wanting to verify this transaction these people are called miners.Whenever a person sends bitcoin to B no one say that in plain english that will be written in some cryptic language.These miners who are all over the world they will try to solve computational problem, very powerful computers(super computers) they will require to solve these problems.once they solve these problems, they will get something in returns as reward that is where we say they are mining the bitcoin.

Why invest in Bitcoin?

In Dec 2017:$19000/Bitcoin.
March 2020:$4000/Bitcoin.
:$42000/Bitcoin.
Jan 2021:$36000/Bitcoin.
Aug 2021:$48000/Bitcoin.

It is very vollatile cryptocurrency.$48000/Bitcoin.But you need not buy one bitcoin.you can buy it in fractions.

Where to store Cryptocurrencies:

1.store it with the exchange.
2.store it yourself (Hardware wallet).
(password protected pendrive)

Discussion (1)

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Mark Smith

Great article, thanks! By the way, is anyone interested in buying BTCs, but you're still don't know how to do that? Probably you know that the cost of buying BTCs depends on where you are buying them. I've seen these Bitcoin ATMs, but they charge about 10% tax on your BTCs purchase. In my opinion, you should Buy bitcoin on cryptoexchanges. I guess, some of the best centralized exchanges to buy BTCs are Coinbase and Binance.