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Bitcoin - A Digital Currency

FEATURES:-
   This is a peer-to-peer payment network through Bitcoin Software, currently known as Bitcoin-Qt and it was introduced in January,2009 by pseudonymous developer Satoshi Nakamoto. There is no exchange of digital notes or tokens between buyer and seller and it operates through a public transaction log, namely blockchain (25BTC with every block). Bitcoin accounts for 55% of the value of all virtual currencies in circulation.
There is no central monetary authority for bitcoin, like the RBI for the rupee,and every computer that processes transactions and creates bitcoins is a part of the network and all these computers work together. A bitcoin can be divided up to eight decimal places (0.00000001), with the smallest unit called Satoshi, after the creator.

BITCOIN WALLET:-
    Bitcoin wallets allow a user to make and accept payments using Bitcoin. Usually, a wallet stores a public key and it refers to a Bitcoin address, and other is its related private key. They come in a variety of forms as apps for mobile devices and computers, hardware devices, and paper tokens. When making a purchase with a mobile device, the use of QR codes can be made to simplify the transactions.
        Bitcoin functions works on public-key cryptography, in which a pair of cryptographic keys, as public key and private key is generated.

Meaning:- Bitcoin  is a cash proxy without any of the inconveniences of cash holdings, in particular, because carrying of bills of large transactions can be uncomfortable and inconvenient. Bitcoin is an innovation, eventually it is a good idea. It can be branded as a virtual product, not a virtual currency. Bitcoin is often referred to as a "crypto currency".

   Commercial use of Bitcoin, whether illicit or otherwise, is currently very small as compared to its use by speculators, which has fueled price volatility.
   Transactions in Bitcoins can be termed in Indian reference as a Hawala transaction in a well managed and systematic manner with proper records by a Hawala initiator (sender customer).

HOW IS BITCOIN CREATED ?
    Through a process called mining, in which those with a specialised hardware and software , compete with each other to process and confirm transactions happening on the network in every 10-minute block, by solving a mathematical puzzle. The miner that does it the fastest is allotted 12.5 BTC (it was initially 50, then 25; it is halved every four years), in addition to transaction fees, after the miner's solution is verified by enough peers.

IS IT LEGAL ?
    It is hard for governments to ban bitcoins, since they do not have geographical boundaries, but that has not stopped governments in Ecuador, Bolivia and Bangladesh from outlawing trading in cryptocurrency.

IS IT SECURE ?
    Not absolutely. Hackers have targeted different bitcoin exchanges. Last week, a slovenian-based exchange lost $64 million of cryptocurrency and a similar amount of bitcoin was stolen from a hong kong exchange last year.

HAZARDS:-
    This is terribly useful to tax evaders and criminals. Bitcoin was conceived  as a currency that require any trust between its users. As a result there is no room for a central authority able to resolve disputes and enforce laws.Bitcoin (may) facilitate money laundering, can be used by criminal or terrorist organisations, and is a risky investment due to the dynamics of its speculative market.The Bitcoin is a threat to global monetary system.

CONCLUSION:-
    Something better will definitely kill bit coin and that's why there are so many bit coin haters. But don't hate the player, hate the game. Bitcoin businessess are not regulated or licenced as banks and hence it is just a product which is being traded by the interested people to hoard their surplus money or for the illicit transactions.

Countries officially banned Bit coins:-
     India, China, Iceland and Thailand

  • In 2013,the FBI shutdown the Silk Road online Black market
  • Britain considered this as single purpose vouchers subjected to Value Added Tax.
  • Capital gain tax is imposed by Finland
  • Germany classified it as private currency and not a foreign currency.

OTHER CRYPTOCURRENCIES:-
  • Ethereum
  • Bitcoin Cash
  • Ripple
  • Litecoin   are among the other large cryptocurrencies
 Coinmarketcap.com, a data site, lists over 1,300

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