Table of Contents
- What is Bitcoin?
- How Does the Bitcoin Work?
- Can You Make Bitcoins?
- How Many Bitcoins are Possible?
- Why is Bitcoins Worth so Much?
- How do You Get Bitcoins for Free?
- Can You Use Cash to Buy Bitcoin?
- Who Owns the Most Bitcoins in the World?
- How Many Bitcoins Are there Right Now?
- Is Bitcoin Legal?
- Is Bitcoin Useful for Illegal Activities?
What is Bitcoin?
Bitcoin is a new form of digital currency also known as the cryptocurrency. Like for other forms of cryptocurrency where the blockchain technology is used for the generation of this form of currency, Bitcoins also follows the same technology. For the regulation of this form of currency, the cryptography rules are followed. Bitcoin was the very first form of cryptocurrency that was introduced to the mass. In recent times, there are a number of different types of cryptocurrencies that are also ruling the market. This form of currency doesn’t have a centralized body, meaning the government cannot take a part in its transaction methods.
How Does the Bitcoin Work?
Unlike the other forms of currency that we use in our day to day life, Bitcoins don’t actually require a place like banks or any other financial organization for its generation as well as storage purpose. They are virtual elements and have been designed in a way so that they are ‘self-contained’.
After purchasing Bitcoin, one can treat it just like a piece of gold and each Bitcoin has its own value and trading features. Bitcoins can be used in either way- you can use it to do any form of online shopping, provided the trader allow this form of transaction or in the other case; you can use it as an investment strategy and simply store it and let the value increase over the period of time. For the trading purpose, Bitcoins uses ‘wallet’, which is nothing but a database and can be stored anywhere- from laptops, mobiles to even cloud storage.
Can You Make Bitcoins?
For making Bitcoins, generally, the term ‘mining’ is used. Mining can be done but from a layman’s perspective, it may be a bit harder. There will be need of a device along with a good working hardware. Technically, it requires software and also a wallet. This is a step-by-step procedure and you have to follow the following mentioned pointers
- Buy a mining hardware: Although the CPU of your computer can help you with the mining part, but the cost associated with it compared to the profit of the Bitcoin is not worth it. As an alternative to this, purchasing a custom hardware can do the tricks for you
- Getting a wallet: As you know for the storing of Bitcoins, wallets are needed. Wallets are readily available but the security may often be a question. Going for a local wallet is safer compared to the online form to avoid the scope of any form of security threat
- Securing the wallet: The wallets have no ownership, meaning one who gets access to it can use your Bitcoins right away. So, to keep it safe, store your Bitcoins in a device or even in the external hard disk that will have no internet access
- Choosing the platform: For mining, you can either go for an established pool or try doing it on your own. Although, while doing via a pool, you have to share your profits, but due to resources and expertise, it will give your more profits rather than trying it on your own
- The need of a mining program: These programs are available online and can be very easily downloaded
- Running the miner: After the configuration, the next step is to run the program. In order to know that the setup is actually working, try looking at the speed of your device. It should just crawl then
How Many Bitcoins are Possible?
With the release of the Bitcoin and so far, the Bitcoin ecosystem is expanding. Today, around 12,446,725 exist and more than that are going to be there eventually. If going by the mining rate, there are at least 21 millions of Bitcoins that will be eventually mined.
Why is Bitcoins Worth so Much?
There was a time when the Bitcoins were not that costly. But with time, this scenario has completely changed. Today, owning a single Bitcoin can be tough for an individual. However, the main reason for its value getting up is the technology behind Bitcoins. There was a time when the media was all in praise about this technology but after few years the craze just diminished. However, with a number of banks experimenting and trying out this block chain technology Bitcoins were successful in getting the limelight again and as per the demand, the price seem to rise exponentially.
How do You Get Bitcoins for Free?
You will be shocked to know that Bitcoins are indeed available for free. Wondering, how it can be? Well, it is and on top of that the way through which you can earn free Bitcoins will simply amaze you. Like have you ever thought that playing certain games online or by completing a survey or even by reading boos you can get free Bitcoins? But this is a reality now and all you need to do is just surf for some of the websites in Google to know about those sites. However, make sure to be aware of the security as well.
Can You Use Cash to Buy Bitcoin?
The answer is yes. Well, you can for exchanges or just but it directly from individuals via the marketplace platform. Also, the payment system is quite flexible too. While you can exchange your cryptocurrencies, you can just pay them by cash and own your Bitcoins. The debit and the credit cards can also e used where it is applicable. Also, the city or the place that you belong will have different methods for this transaction. So, based on that you have to pave your way accordingly.
Who Owns the Most Bitcoins in the World?
Although, it is not known for certain that who exactly owns the highest number of Bitcoins, there are seven names that normally comes against your search query
- Satoshi Nakamoto, an anonymous name used for the creation of Bitcoins
- The Winklevoss Brothers
- Tony Gallippi, said to be the executive of cryptocurrencies
- Uncle Sam
- Barry Silbert, the cryptocurrency enthusiast
- Charie Shrem
- Tim Draper, a billionaire
How Many Bitcoins Are there Right Now?
The total number of Bitcoins that can be mined is 21 millio. However, today only a total number of 12,446,725 Bitcoins are available.
Is Bitcoin Legal?
The legal status of the Bitcoins depends on three important factor- your status as an individual, your place of residence and how you plan to use your Bitcoins. Based on this, many countries have not yet legalized the use of Bitcoins. In the US, many issues have been raised against the use of Bitcoins and so far the entire thing is very complex. Also, considering Indian, the RBI has not really accepted it as a currency and is asking the consumers to stay away from it.
Is Bitcoin Useful for Illegal Activities?
The anonymity associated with the use of Bitcoins makes it a very favorable thing for the criminals and frauds. Also, the security often comes to question when the wallet is concerned. However, just because it is easy to hack and the criminals find it easy to make money out of it, doesn’t prove anything against Bitcoins. Even with the existing currencies and the number of cyber attacks, the online transactions also are a concern these days. Hence, it can be rightly said that since the flexible nature of Bitcoins makes it easy for hackers, its technology definitely doesn’t support illegal activities in any form.