what is bitcoin

Bitcoin is a crypto currency, which will hardly clear your concept so today we will discuss completely about Bitcoin as well as from investment POV.

In this Blog, we will clearly understand each aspect of Bitcoin and is it necessary or foolishness to invest money in it.

Lessons Covered :

  1. Overview
  2. UPI, wallet and Bitcoin

1. Overview

If we do a quick flashback, we remember people used to exchange objects on particular requirements because money isn’t introduced.

But then comes the situation where trade can’t be executed since both the parties requirements were not fulfilling according to their needs.

At this moment comes gold and silver but again weight and carriage issues comes into action. Silver was heavy to carry to different places and gold was too expensive to take with oneself.

Now comes government into the action, they started taking deposits of the gold and gave certain currency for transactions.

Government wanted to change countries economic policy but they can’t print more currency since presence of that equivalent gold was required in the locker.

bitcoin explanation

This led the government to evolve financial system and they started printing without any deposits. If the government says it’s 100rs , it is 100 rs. For that you don’t have to deposit any gold in RBI reserves.

Note : This is known as FIAT money and whole world is working in this way only.

2. UPI, Wallet and Bitcoin

Through UPI we can transfer money from id to another and for confirmation it asks for a password.

Bitcoin is similarly a digital money just like UPI. You have a bitcoin id which you can share to people so they can send you money. Password will be there while you send your bitcoins to somebody else.

This is Bitcoin Private key because this is everybody’s private information.

Ledger – Who maintains data in Bitcoin like in UPI’s.

Nobody, in bitcoin there is no bank or organisation who maintains this data that who sent the money to whom.

When you put somebody else’s bitcoin id and enters password and execute a transaction, this data of receiving and senders address is sent to various locations that password was correct and transaction was approved.

Banks can investigate your UPI id’s.

Yes, government can check who’s UPI id did the transaction and whose bank account is linked behind that which can directly tell which person is doing the transaction.

In Bitcoin wallet, you don’t need PAN and aadhar to make an account. No personal information is taken so no information can be extracted of the person doing the transaction and receiving the same.

This money is not REAL money but digital one, also called crypto currency.

This online currency is not dependent on any countries government. They can make it illegal or remove the apps which is used to trade in it but they can’t change the value of it.

Banks don’t control it’s value in any conditions since it is not related to government in any condition.

How bitcoin gave huge returns?

  1. It is a very unique concept and when newly launched, it gathered attention of lot’s of individuals.
  2. Supply was limited ( 21 Million bitcoin is only present for all over the world )
  3. Bitcoin is not acceptable in each and every shop.

Thank you for going through the whole informational blog, stay tuned for more upcoming blogs.

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