Bitcoin – a hype or an investment? What exactly is a bitcoin? Why there is so much hype about it? Is it really worth its value today? Cryptocurrency can also be used to make payments in digital ads in future Today I am going to answer all your queries regarding bitcoin
Hello guys! My name is Seema Gupta and welcome back to my channel! What exactly is a bitcoin ? It’s a digital currency, which means that its all virtual , it isn’t available like hard cash The most striking feature of bitcoin is that there are no middle men involved in any of the transactions Whenever we buy or sell anything online, there is always a bank which under government regulations approves the transaction and takes a small cut from the payment done Your payment gets recorded by the banks and you can always ask a copy for it Bitcoin on the other hand is completely anonymous
It is decentralized which means that no banks or even the government agencies have any control on it Crazy right! Now how are the transactions completed? Now let’s say you are paying your friend one bitcoin Like how we have UPI ID or bank account number similarly there is a recipient address which changes after every transaction and it doesn’t require you to share any personal information while making the payment So when you initiate the payment, there is a group of individual anonymous people called miners who approve the payment Miner can be anyone: you or me
Now here’s the catch The payment doesn’t get approved in the conventional way rather they have to solve complex mathematical problem to approve the transaction and they get rewarded for it The process is called mining The entire process takes about 15-20 minutes Now you may ask what are the advantages of bitcoin? 1
Its completely anonymous, which means that your personal identity is never exposed in any transaction , unlike in normal transactions where the name of the sender is clearly visible 2 Its decentralized The main drawback for other currencies is that you can only transfer a certain amount to another account overseas daily and the banks rules will keep changing so sometimes it cripples the sender from sending money Now in bitcoin, no need to worry about bank holiday and payment limits Also the government can't freeze your assets and you have complete freedom over it
3 Its neutral No individual can try and manipulate the entire functioning of the process to his advantage This has been one of the key factors for the rise of bitcoin as after the 2008 crisis, the world was shocked by the manipulative the banks could be 4
It cant be stolen In these increasing times of online fraudulent activities , bitcoin provides a state of the security In conventional currency, a few details are required to gain complete control over your finances but in bitcoin a person will require physical access to do the same Now you may ask what are its disadvantages? 1 Due to its anonymous and non-regulated method of functioning , it is being used for a lot of illicit activities
2 Huge volatility Bitcoin values works on the basic principle of demand and supply because the number of bitcoins is capped at 21 million, so its value will increase on a daily basis When bitcoin was launched, its value was almost 0 and now its close to a staggering 40 lakh rupees! Since no government agencies have any control over it, there is no insurance against its values Now this might cause spending surges which may cause the Bitcoin economy to fluctuate unpredictably 3
Once lost, its lost Now if we lose our credit or debit card we can easily request for another one Banks insure us of a certain amount in case of any mishaps happened to your account But if you lose your bitcoin, its lost forever What is the future of bitcoin? Recently many countries including India banned bitcoins and they asked many companies involved in the transactions to make all the information public
Now this has been done because flourishing non-regulatory currency poses a threat from the economic point of view Now do you think it was a right move by India? Do let me know in the comment section Do like, share and subscribe to my channel and stay tuned for my upcoming videos! Bye for now!
