We know that money as a medium of exchange has solved many problems, such as a double coincidence of desires and thus eliminated the exchange system. Similarly, the use of cryptocurrency as an advanced method promises simple, secure, secure and fast transfers. It will therefore probably replace the traditional funds as paper money in the near future.
About Bitcoin:
Bitcoin is a kind of cryptocurrency. It is one of the first digital currencies to use peer-to-peer (P2P) technology to facilitate instant payments. It is both user-friendly and ie friendly digital currency and so that the public can easily access it. It covers exciting areas of use with various functions that could not be covered by previously designed payment systems. No one owns or controls btc.
So where do bitcoins come from? btc is created by the special mining process. The mining process involves compiling the latest transactions in blocks and trying to solve a computationally difficult puzzle.
Let us now examine the steps to running a bitcoin account:
The first step is to install the Bitcoin Wallet app on your computer or mobile device. Btc Wallet is simply a free open source program that generates your first Bitcoin address.
The second step is to verify your account by sending your PAN card details, bank details, others if needed. Once you have verified, you must deposit an amount into your btc wallet to buy bitcoins. Thus, you can buy bitcoins with your credit card, bank account or cash, depending on the terms of the btc Wallet app. Your btc is transferred directly to your Bitcoin account.
Now your Bitcoin address has been created and you have acquired Bitcoins, so you can use these purchased Bitcoins to send and receive payments directly to a buyer/seller or company/companies that accept bitcoin, without needing an intermediary such as a bank or credit card companies etc.
The company/company shares with you their Bitcoin address/QR code, to which you can send your Bitcoin payment. You direct the payment to that address and complete the transaction.
There is a complete register of all transactions in the bitcoin network and everyone can see it. All Bitcoin transactions are part of a common public transaction record called "Blockchain".
So now we know the whole process of bitcoin operation and how Bitcoins can be used to make all types of real transactions.
How Bitcoin works as an investment:
From an investment perspective, Bitcoin is often compared to gold, as both have many common assets. Consider the following points:
Limited supply Volatility Rare use Storage of value When gold and bitcoin were compared as investments, bitcoin surpassed the precious metal. The return indicated that bitcoin pleased investors with the opportunity to put funds in a completely new asset.
But bitcoin is known for unpredictable price rises, highs and deep falls that would make it difficult to trust the asset as a long-term currency. Thus, given its volatility, many investors think twice before investing in bitcoin. A good rule of thumb when investing in any asset is to never invest more than you would be willing to lose.
Risk:
Probably the biggest risk for Bitcoin's future success, both as a currency and as an investment, is the regulatory risk itself. For example, if China decides to ban its citizens from holding bitcoin, the price of the digital currency would fall. Therefore, some negative regulatory changes would have a direct impact on the world's bitcoin investment.
