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If you had invested less than 1 rupee in bitcoin in 2009, then today its price would have been more than 1 crore rupees.
The price of bitcoin has crossed Rs 1.08 crore for the first time. Today, i.e. on Thursday 14 August, this cryptocurrency made alltime high. In 2009, when someone named Satoshi Nakamoto made it, its value was close to 0. That is, if you had invested less than one rupee in bitcoin at that time, then today its price would have been more than 1 crore rupees.
The first major price hike of bitcoin was in October 2010. When the price of a bitcoin started going above it after being close to $ 0.10 (about 8 rupees) for a long time. By the end of the year it reached 0.30 dollars. By 2013, its price had crossed $ 1000. According to today, this price in rupee is close to 87 thousand rupees.
The full story of bitcoin in question and answer…
Question 1: What are the reasons for bitcoin to reach high?
Answer: Bitcoin has reached all-time high due to economic, political and regulatory changes:
- Changes in US Policy: President Trump has implemented crypto friendly policies. Such as removing the ban on work with crypto companies on banks.
- Increase in institutional investment: Large institutional investors have invested billions of dollars in bitcoin ETFs, which increased the demand.
- Increasing acceptance in Crypto Market: In markets like London and Thailand, its acceptance has increased due to approval of Crypto ETF.
Question 2: What is bitcoin and how does it work?
answer: Bitcoin is called the “gold” of the digital world. It is a digital currency that works without any bank or government control. That is, it is decentralize. No one authority has control over it.
Bitcoin is not a physical coin or note, but a digital code that lives in your digital wallet. Just as you send messages on WhatsApp, similarly you can send bitcoin anywhere in the world through the Internet. Their number is also limited.
Bitcoin works on blockchain technology
- It works on blockchain technology. Imagine that there is a bookkeeping, in which bitcoin transactions from all over the world are written. This bookkeeping is called blockchain, and it is present together on thousands of computers.
- Blockchain is like a digital copy that records information, such as transactions,. Everyone can see it, but no one can change or erase. It shares on many computers, so it is safe and reliable.
When you send bitcoin to someone, this transaction is recorded in blockchain. The task of checking and securing it “Minors”, which solves mathematical problems with the strength of their computers. In turn, they get new bitcoins.
This system is special because no one institution keeps all control in it. The bank keeps your money account in the bank, and if the bank makes a mistake or goes bankrupt, then your money may be in danger.
But in bitcoin, blockchain keeps every transaction transparent and safe, and it is almost impossible to hack it because it is divided on computers around the world.
Question 3: How does blockchain work?
answer: Think of blockchain as a series of blocks. Each block is a page of copy that contains a list of transactions (eg, Aditya sent 100 rupees to Vikram).
When the block is filled, it is locked and connected to the previous block. Computers called Nodes check and store this information, making it perfect and safe by ensuring that it is correct and safe.
Blockchain is also very safe as it uses mathematics and code to save data. Since many computers keep a copy of blockchain, it is difficult to hack.
Question 4: Why is bitcoin called digital gold?
answer: A special feature of bitcoin is that its total number is 21 million. More bitcoins will never be made than this. This rule is already written in its technique.
If bitcoins were unlimited, then as the prices of goods increase by printing more notes, the price of bitcoin could have been reduced. This limited supply is called “digital gold”, as it is rare and precious.
Question 5: What is the difference between bitcoin and fiat currency?
answer: Fiat currency is the note or coin that the government prints, such as a 2000 rupee note in India. If the government says that this note is no longer valid, as it was during demonetisation in 2016, its price can be zero.
But, bitcoin is like gold that has its own internal price. This is because it is also rare like gold and the government cannot control it.
Earlier people used to buy things by giving grain or gold. Then the government printed paper notes. Previously, the price of currency was based on physical resources such as gold or silver. The more gold you have, the more currency you could print.
The condition of the physical base was then removed. That is, the government can print as many notes as he wants. But this increases inflation. Bitcoin changes this entire system.
Question 6: Is bitcoin risky?
answer: Yes, bitcoin can be risky. Its price is very up and down. Forgetting the password of hacking or wallet can also lose bitcoin. Also, some countries can make strict rules for this.
Question 7: What is the advantages and disadvantages of bitcoin?
Benefits:
- Decentralization: No government or bank controls it, making it free and transparent.
- Security from inflation: Its limited supply protects it from inflation.
- Global Transaction: This is the fastest and cheapest way to send money especially abroad.
- Blockchain strength: This makes the transaction safe.
Loss:
- Unstable: The price of bitcoin changes very rapidly, making investment risky.
- Limited acceptance: It is not yet accepted for payment everywhere.
- Illegal Uses: Used in works such as money laundering and illegal weapon shopping.
- energy intake: The heavy consumption of electricity in mining is a matter of concern for the environment.
Question 8: What is the future of bitcoin?
answer: If more people and companies use bitcoin, it can be bigger. It can become like a normal money online, but new technology and government permission are necessary for this.
