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2017

All you wanted to know about Bitcoins - the Pioneer Cryptocurrency

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The Bitcoin has become the talk of the town nowadays. It is the most sung buzzword in all media be it print or digital. People across the world are excited about Bitcoins. However, very few of us actually know about bitcoins. In this blog, we will zero in on the Bitcoins and other keywords associated with bitcoins.

What is Bitcoin?

Bitcoin is the very first cryptocurrency created in the year 2009 by person or group of people using the name Satoshi Nakamoto. Since then many other cryptocurrencies have been created. As of now, there are more than a thousand cryptocurrencies available for exchange. However, Bitcoins remain the most popular and most widely traded cryptocurrency till date. The transactions in the Bitcoin takes place through a peer-to-peer network. Such transactions are secured using cryptography. These transactions are recorded in the Blockchains - the ledgers shared by all who deal in Bitcoins.

Important Keywords associated with Bitcoins:

Cryptocurrency:

Cryptocurrency is a non-regulated digital currency. It is created to act as a medium of exchange using cryptography to secure the transactions. Unlike the currencies of a country like Indian Rupee which is regulated by a central banking system of the respective country, a cryptocurrency is a non-regulated currency without any central repository and control. The transactions in these currencies take place directly between the two parties without any regulating authority on a peer-to-peer network.

Blockchain:

The Blockchain is a ledger shared among all who deal in bitcoins. All transactions are recorded in the Blockchain. The Blockchain is regulated and maintained by Bitcoin software run on interconnected network nodes. Each transaction is recorded by respective network nodes in blocks. Later on, details of transactions by all nodes are published to other connected nodes to update the Blockchain. Hence, details of all transactions are available to the public through Blockchain.

Features of Bitcoins as Cryptocurrency:

Virtual: Bitcoins are different from the hard cash that we carry in our pockets in that they do not exist in physical form. Bitcoins are virtual currency which are nothing more than lines of codes stored in Blockchains.

Control of Supply: Unlike the supply of official currency of a country which is regulated by the central authority, the supply of Bitcoins is regulated by series of software codes. The software controls the supply of digital currency based on the schedule provided in the codes. In other words, we can say that the supply of Bitcoins at a given point of time in future can be predicted based on the codes written in the software.

No control by Government: As the Bitcoins are not regulated by Government, they are not influenced by Monetary Policy. The Government of any country has no control over price, inflation, deflation or supply of Bitcoins.

Irreversibility of Transactions: A transaction, once completed, cannot be cancelled or reversed in any case by any authority. Not even the inventors of the Bitcoins can undo a transaction. This means if your bitcoins are stolen by some hacker during the transaction, there is no way to recover them back. This feature makes Bitcoins transactions risky.

No Real Identities of Buyers and Sellers: The real identity of users dealing in Bitcoins are not revealed. The users are identified through a 30 digit identity code. Though the transactions can be tracked, the real identity of people behind these transactions cannot be tracked.

Global rich 24/7: Bitcoins are not bound by political boundaries of any country. They are truly global currency. The transactions in Bitcoins can be carried out at any time as the Bitcoin exchanges are virtual and are active 24/7.


Popular Bitcoin Exchanges:

There are no official exchanges for Bitcoins. However, there are some digital asset brokers who act as online exchange platform for cryptocurrencies. A Bitcoin Exchange lets you buy, sell, store, pay and accept bitcoins. However, one needs to have a digital wallet in order to buy, sell or exchange bitcoins. Mobile phone or computer can act as such wallet through which we can buy bitcoins using debit / credit card or net banking.
Some of the popular Bitcoin exchanges are listed below:

Bitcoin Exchange

Particulars

Website

Popular Bitcoin Exchanges Worldwide

Bitfinex

One of the largest Bitcoin exchange in the world in terms of USD trading volume in terms of bitcoins traded per day.

https://www.bitfinex.com/trading

 

Bitstamp

One of the largest Bitcoin exchange in the world in terms of USD trading volume in terms of bitcoins traded per day.

https://www.bitstamp.net/

 

CoinBase

Another popular digital asset broker worldwide

https://www.coinbase.com/

 

India Based Bitcoin Exchange

Zebpay:

Popular Bitcoin Exchanges based in India

https://www.zebpay.com

 

CoinSecure:

https://coinsecure.in/

 

Unocoin

 

https://www.unocoin.com

 

Note: To know more about the largest Bitcoin Exchanges in the world and trading volume of Bitcoins, go to the following link: https://data.bitcoinity.org/markets/volume/24h?c=e&t=b

Other popular Cryptocurrency: Here are some other popular cryptocurrencies apart from Bitcoins.

  1. Ethereum
  2. Ripple
  3. Litecoin
  4. Dash
  5. NEO
  6. IOTA
  7. Monero

 

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