Today we have a glance at the most buzzing and interesting topic of this era “bitcoins”. Without further ado, let’s get to know what are they, how to get them, are they legal, how are they formed, and many questions you have in your mind.
A cryptography is a process to secure data from the outside world or known as the third party. When a transaction is made it is to be made sure that none other than the two parties transacting are involved.
A cryptocurrency is a digital currency developed using cryptography.
Cryptocurrencies are the form of money but in an online world which is not governed or controlled by the governments, this is the main reason which made them so popular over the time.
Many types of cryptocurrencies were later developed over the period and are constantly in a surge of generation. Some cryptocurrencies developed later were Peercoin, Litecoin, Feathercoin but Bitcoin was the first of them all.
A bitcoin is a type of cryptocurrency which was developed in the year 2009 by a person named Satoshi Nakamoto whose identity is hidden.
A total of 21 million bitcoins can ever be mined out of which 11 million bitcoins are already mined and in circulation across the network. And Yes, they are legal.
How are they produced & stored:
Bitcoins are mined by solving mathematical problems performed by very powerful computers. When a user solves the problem that miner is awarded 12.5 bitcoins as of June 2016 every 10 minutes. Anyone can mine bitcoins they will be needing a desktop computer which will perform basic mathematical calculations resulting in the generation of some bitcoins.This process is not an easy task as a personal computer may take 2 to 3 days non-stop to mine some bitcoins and generating 20 to 30 cents of revenue. This processing speed’s up when done in a group of computers or miners.
When mined or transacted bitcoins are stored in a person’s personal hardware storage or stored online. Hardware bitcoin theft is difficult and recommended as compared to cloud storage. Once the hardware which stores the bitcoins is lost or dumped these bitcoins can never be recovered.
A study showed almost 4 million bitcoins or an amount of $30 billion are lost due to mishandling, lack of tracking or hardware reasons.
The bitcoin is recorded in a public domain the name of the bitcoin holder has never revealed just the wallet’s id which holds the bitcoin or the transaction made by the wallet.
The transactions made are decentralized and part of every data is scattered all over the network, which merges at the time of location so they are quite difficult to be tracked and to find.
So, although people cannot easily see your personal identity, they can see the history of your bitcoin wallet. A good thing, as a public history adds transparency and security, helps deter people from using bitcoins for dubious or illegal purposes.
How are they tracked:
The tracking of bitcoins includes the blockchain technology.
This technology in bitcoins acts as a ledger which keeps the record of the bitcoins as they move from one wallet to another. All bitcoin transactions are logged and made available in a public ledger, helping ensure their authenticity and preventing fraud other miners can This process helps to prevent transactions from being duplicated and people from copying bitcoins.
Usage of bitcoins:
The usage of bitcoins is getting increased day by day. The number of companies accepting bitcoin payments is growing rapidly. Retailers all over the world especially in countries like, Japan now accept bitcoin payments due to a new law passed previous year, and small businesses can accept bitcoin payments through simple plugins that add to WordPress websites.
Future of bitcoins:
All the ups it had during the previous year where its value jumped higher than ever, people were concerned about the future. At the start of the year 2017, one bitcoin was worth around $900 which seemed quite fine as everyone was within reach of it in terms of buying and considered it to be a quality investment but as the year passed down its value increased tremendously, every day its stakes were getting higher making it difficult to lay hands on, until the end of the year the value of one bitcoin was around $15000.
The new year brought new questions about the future of bitcoins.
What’s the future of bitcoins? Where do they stand in future? Should the investment be made? Will the prices rise?
Countries are concerned about the taxation. With Australia, China, and Japan now regulating this currency.
Having said that, No one knows for sure (with any degree of certainty) where will it stand but most agree that the future is bright.