A SNAPSHOT ON THE NEW DIGITAL CURRENCY: BITCOIN
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Bitcoin is a decentralized digital currency that allows peer-to-peer transactions without intermediaries, verified by network nodes and recorded on a blockchain. Created in 2009 by an unknown person using the alias Satoshi Nakamoto, it has gained popularity for its anonymity and lack of transaction fees, with many vendors accepting it as payment. The future of bitcoin remains uncertain as government regulation and concerns over taxation may impact its unregulated nature.
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A SNAPSHOT ON THE NEW DIGITAL CURRENCY: BITCOIN
VARUN KESAVAN, RESEARCH SCHOLAR, E – MAIL ID –
varunkesavan@yahoo.com
Bitcoin is a cryptocurrency and worldwide payment system.[8]:3 It is the first
decentralized digital currency – the system works without a central repository or
single administrator.[8]:1[9] The network is peer-to-peer and transactions take place
between users directly through the use of cryptography, without an
intermediary.[8]:4 These transactions are verified by network nodes and recorded in a
public distributed ledger called a blockchain. Bitcoin was invented by an unknown
person or group of people under the name Satoshi Nakamoto[10] and released
as open-source software in 2009.[11]
Bitcoins are created as a reward for a process known as mining. They can be
exchanged for other currencies,[12]products, and services. As of February 2015, over
100,000 merchants and vendors accepted bitcoin as payment.[13]Research produced
by Cambridge University estimates that in 2017, there are 2.9 to 5.8 million unique
users using a cryptocurrency wallet, most of them using bitcoin.](https://image.slidesharecdn.com/asnapshotonthenewdigitalcurrencybitcoin-171204115733/85/A-SNAPSHOT-ON-THE-NEW-DIGITAL-CURRENCY-BITCOIN-1-320.jpg)
A SNAPSHOT ON THE NEW DIGITAL CURRENCY: BITCOIN
- 1. 1 A SNAPSHOT ON THE NEW DIGITAL CURRENCY: BITCOIN VARUN KESAVAN, RESEARCH SCHOLAR, E – MAIL ID – varunkesavan@yahoo.com Bitcoin is a cryptocurrency and worldwide payment system.[8]:3 It is the first decentralized digital currency – the system works without a central repository or single administrator.[8]:1[9] The network is peer-to-peer and transactions take place between users directly through the use of cryptography, without an intermediary.[8]:4 These transactions are verified by network nodes and recorded in a public distributed ledger called a blockchain. Bitcoin was invented by an unknown person or group of people under the name Satoshi Nakamoto[10] and released as open-source software in 2009.[11] Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies,[12]products, and services. As of February 2015, over 100,000 merchants and vendors accepted bitcoin as payment.[13]Research produced by Cambridge University estimates that in 2017, there are 2.9 to 5.8 million unique users using a cryptocurrency wallet, most of them using bitcoin.
- 2. 2 MEANING OF BITCOINS Bitcoin is a new currency that was created in 2009 by an unknown person using the alias Satoshi Nakamoto. Transactions are made with no middle men – meaning, no banks! There are no transaction fees and no need to give the real name. THE NEED FOR BITCOINS Bitcoins can be used to buy merchandise anonymously. In addition, international payments are easy and cheap because bitcoins are not tied to any country or subject to regulation. Small businesses may like them because there are no credit card fees. Some people just buy bitcoins as an investment, hoping that they’ll go up in value. ACQUISITIONS OF BITCOINS Buy on an Exchange Several marketplaces called “bitcoin exchanges” allow people to buy or sell bitcoins using different currencies. Mt. Gox is the largest bitcoin exchange. Transfers People can send bitcoins to each other using mobile apps or their computers. It’s similar to sending cash digitally.
- 3. 3 OWNERSHIP OF BITCOINS Bitcoins are stored in a “digital wallet,” which exists either in the cloud or on a user’s computer. The wallet is a kind of virtual bank account that allows users to send or receive bitcoins, pay for goods or save their money. Unlike bank accounts, bitcoin wallets are not insured by the FDIC (FEDERAL DEPOSIT INSURANCE CORPORATION). AMBIGUITIES IN BITCOINS Though each bitcoin transaction is recorded in a public log, names of buyers and sellers are never revealed – only their wallet IDs. While that keeps bitcoin users’ transactions private, it also lets them buy or sell anything without easily tracing it back to them. That’s why it has become the currency of choice for people online buying drugs or other illicit activities. FUTURE OF BITCOIN It is mostly unregulated, but that could change. Governments are concerned about taxation and their lack of control over the currency