Bitcoin is a Crypto currency (Digital currency which uses encryption techniques to regulate the generation of units of currency, their transfer etc. without any involvement of central bank). It was created in 2009 by a person with alias “Satoshi Nakamoto”. It can be used without any middle party and used for following things
- Hotel booking
- Beer purchasing
- Guns (Illegal)
- Vacuum cleaners
- Taxi rides on Uber
- Air plane tickets
- Yachts
and many more things………….
Who use it?
Mostly criminals are used it for purchasing of illegal things. But this doesn’t make using it illegal for trading. It is 100% legal in almost every country of the world and only six countries have banned bitcoin trading completely. In India, Bitcoin trading is completely legal.
You can buy merchandise anonymously (without knowing to anyone) but what benefit you will get by doing this? This is the reason why normally people don’t use it for normal daily life transactions.
How they generate?
Generating bitcoin is called “Bitcoin Mining” by using computers to solve complex maths puzzles. 50 bitcoins are generate in every 10 minutes in the world. There are 12.44 millions bitcoins that have been mined. But only 21 million bitcoin can be mined, after that plates will be self destruct.
How to store them?
Bitcoin are stored in a “Digital wallet” which can be on cloud or user’s computer but this is not the 100% secure method to do this because hackers can attack on your system and take the all the coins away from you.
Safe method is to store them in “Bitcoin hardware wallet” (hard ware that looks like a pen-drive used for storing bitcoins). Since it doesn’t need to be connected to any network, after storing of bitcoins. Hence it cannot be hacked.
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