WHAT IS CRYPTOCURRENCY AND BITCOIN

 WHAT IS CRYPTOCURRENCY AND BITCOIN

What is Bitcoin? How does it work?

Bitcoin is one of the topics in focus at Global Oneness. Its value is hitting new record levels day by day. The reign of Bitcoin, which began in 2007, has undergone many ups and downs and is finally gaining value.

Surprisingly by 2020 its value has increased by 170%. Bitcoin is currently valued at $ 56,267 in April 2021. That is about Rs 43 lakh in Indian currency,

Why is there so much demand for this cryptocurrency? Is Investing in Bitcoin Safe? How does the Bitcoin system work? Can anyone control this? Let's find out.

Bitcoin is a virtual currency. There is no government control over this. This currency is not issued by any bank. It is not the currency of any country so there is no tax on it.

Cryptocurrency is not in the physical form of papers or coins

It is purely digital currency only.

Bitcoin is like a file hidden in a computer. Can be hidden in the form of a digital wallet on a smartphone or computer.

Bitcoin crossed the $ 20,000 mark for the first time in December last year, reaching $ 45,000 in just two months.

In fact many people have many doubts about cryptocurrency. Let's learn about them. Cryptocurrency is a digital (virtual) currency. Common currencies (such as the rupee and the dollar) are physically circulating. Cryptocurrencies, however, are not physically visible and cannot be touched. These work through special software codes. These are only in fully digital form.

Bitcoin is rumored to be the brainchild of Japanese techie Shatoshi Nakamoto. However there is no clarity on this. Bitcoin survived in 2009.

Black chain technology is the basis of cryptocurrency. Although Bitcoin, Ethereum, Stellar, Ripple, Dash and many other cryptocurrencies still exist today, Bitcoin is the most popular cryptocurrency.

Whenever cryptocurrency is mentioned, or when it comes to bitcoin, we often hear about cryptography techniques and blockchain technology. Blockchain is a unique technology based on data bases. The information is divided into blocks. That information is stored on different servers all over the world. This system works by connecting one server to another. For this reason it is almost impossible to hack or steal information stored in the form of a black chain. For this reason no one can control cryptocurrencies. Hence the argument that cryptocurrency is the most secure.

Why is the value of Bitcoin rising so much? Bitcoin has become one of the best performing assets over the last ten years. Investors are starting to trade it to protect it from inflation.

Most corporate firms and institutional investors focus on cryptocurrencies. Investing heavily in bitcoins to diversify the investment portfolio. The bitcoin market is very small compared to other markets so the value of bitcoin is never stable.

Let's learn how to get bitcoin.

The process of creating bitcoins is called mining. Bitcoin mining involves the use of powerful software to solve complex allergies and verify transactions. If the miners are successful in this process they will be awarded some bitcoins.

Reward new bitcoins by solving very complex cryptography problems.

Bitcoins are also very limited as gold and diamonds change. People on the other hand tend to buy these. Hence the demand for it is increasing according to the principle of supply and demand.

100 paise per rupee .. A bitcoin has 100 satoshis. It is very difficult to buy a bitcoin nowadays due to the huge increase in the value of bitcoins. Such people may also invest in Shatoshi or by purchasing a portion of it.

Some people prefer bitcoins because there is no government control. All transactions are recorded so it is not known out who made them. Those who do not want to know the details of their transactions are turning to bitcoins.

 There are no rules or guidelines when trading on cryptocurrencies so if any disputes arise .. no help from the government. So it is important to trade without violating any laws.

There are several exchanges available for buying / selling Bitcoin in India. The most important of these are Wazir X, Coin Switch, Zeb Pay and Coin DCX.

Investments in cryptocurrencies can be made after obtaining a trading account on these exchanges. But cryptocurrency exchanges in India do not fall under any government regulatory framework. They do not even need licenses to start operations in India. All of these are currently operating in accordance with the self-regulatory organization framework.

All cryptocurrency exchanges collect almost identical information to open a Bitcoin trading account. Bitcoin trading account can be opened with bank account, KYC details as well as mobile number. Any of the Aadhaar or PAN cards can be used for KYC verification. Money can be transferred from a registered bank account to a trading account.

Capital Gains Tax on their Bitcoin Investment Profits in India. If bitcoin sales and buying are the main activities, businesses will have to pay tax.