Bitcoin is usually termed as a cryptocurrency, practical money or digital money. It is often described as online cash that is used to conduct online shopping, services, transactions and many more. But, still many countries have stopped their usage. The Bitcoins printed on paper that is seen by you are nothing more than an innovation. Private codes that are printed within them are the major determiners of their worth. Without the presence of the private key, it is futile. The value of the bitcoins has been rising and falling for many years. It was designed in 2009 and in the year 2020, we will celebrate its 12th anniversary.
About digital wallet app
A mobile phone or a computer contains a digital wallet app which is a stockpile of bitcoins. They can be transferred from one person to another through this digital wallet. Blockchain is a list that maintains all the records of each of these transactions done by the people. These blockchains are quite advantageous as they help in stopping people from using the coins that do not belong to them, aid in printing copies as well as undo certain investing in crypto assets.
Usually, people obtain Bitcoins through the following methods:
- By buying it with real money
- Selling things and taking money for the sold thing only in the form of Bitcoins
- Lastly, by creating special computers in order to produce Bitcoins
As told earlier, people produce Bitcoins by setting up special computers that generate bitcoins. In other words, this process is also termed as mining. Sometimes, people can also make their computers process transactions to make this system of bitcoin work and force computers to work on extremely complicated sums. As a consequence of this, the owner of the computer gets awarded with a Bitcoin. But the tricky level of these sums performed by the computers keeps on escalating year after year to end the production of numerous bitcoins at a certain moment. It takes several years to manufacture one bitcoin. Thus, it is a laborious job which may result in high expenditure on the electricity consumed to operate the computer and the single bitcoin obtained after this long procedure would not be worth it.
Primarily, wallets are the warehouses of bitcoins but do not play a role in buying or selling it. Fake wallets can be scams that may steal your passwords and other personal details. So, they are certain secure websites, for instance, Bitcoin.com which suggest wallets for users that are simple and safe and also provide easier ways of receiving a bitcoin.
Rates of Bitcoin:
The price of the bitcoins is particularly determined by the size of its mining network. As there is a larger network, the costlier it is to generate new bitcoins. According to research, the price of bitcoin has risen to $19,000 from only $1,000 at the beginning of the year 2017.
I opine that bitcoins are not much valuable but bitcoins have become precious nowadays because people want to replace it with cash and switch it with services and real goods. There are many reasons behind people’s will to acquire these bitcoins. Firstly, they are interested in the fact that the bitcoins are not at all under control of the government or bank authorities. Secondly, none of the people can get to know the details of your account until and unless you tell them, even though every transaction is recorded.
The best part about this bitcoins is that they are an open-source i.e. they are designed in public and nobody owns it or controls it. These Bitcoins are completely secure and safe because they are recorded publically and it becomes a complex job to copy the Bitcoins, make fake ones and spend them even though they don’t belong to you. There is a possibility that you might lose your wallet consisting of the bitcoins or delete them by mistake and at last, lose them forever. In addition to this, various websites provide you the facility to store your bitcoins distantly, but there might be thefts from these websites thus, resulting in a huge loss. Since there are such cases possible, this new trend of turning money into bitcoins should be stopped immediately as it not safe as well as you may have to suffer big time.