If I have to sum up BITCOIN in very fewer words it’s a “Digital currency or asset” or “Decentralized currency”.
By Digital currency or asset I mean, Asset is something which has a value. Like your house, your car, you’re gold. If you are going to sell these things in the market, you will get money in return for it as people know that these things possess value.
BITCOIN is of such kind, it’s an asset that you can sell in exchange for money.
This is a digital asset because unlike your gold, car, and house. It’s not available with you. You can’t touch or see it. It’s stored in the hard disk as its digital.
It’s a currency as you can see use it as a payment system. If you want to pay anyone across the globe you can do so through BITCOIN.
Decentralized because it’s not under any authority’s grip. Just like your other currencies rupees, dollars have the central authority on it. The rupee has the authority of the reserve bank of India.
Reserve bank of India decides what is going to be the value of a rupee and how many notes can be print.
This is not the case with BITCOIN. The value of a BITCOIN is decide based on the number of people using it.
No person or an organization can control BITCOIN or can do so in the future. Hence No one suddenly declares the demonetization BITCOIN overnight.
Who is he? Where has he come from? What does he do? It is not known by anyone. He is an anonymous person.
A person doesn’t even know whether it’s just a person behind it or it’s a group of people who have invented BITCOIN.
The biggest reason why this was made is the financial crises of 2008. When due to some mistakes of banks, the banks crashed hence lakes and millions of people over the world suffered a loss.
The banks were led to insolvency due to their own wrong decisions and the loss had to their own wrong decisions and the loss had to be borne by every individual and every taxpayer. After that people realized till when they will be relying on banks.
The founders of BITCOIN have said that the motive behind starting BITCOIN is to create a decentralized system away from the banks and the government.
Which won’t be under the control because if they’re a failure in the part of the bank or the government the entire economy fails?
But if there’s a decentralized system like BITCOIN. Due to an individual or an organizational error, the entire financial system won’t crash.
Wherever there a centralized database or a center one point, it’s very convenient to hack and fail that system, and if we bring decentralized there no one point to hack that can lead to failure and it’s generally successful.
There have been rumors spread regarding the legal status of BITCOIN in the country especially after the budget 2018.
But the truth is my friends that during the budget 2018 our finance minister late Mr.Arun Jaitely has said that BITCOIN won’t be legal tender. That means you can’t be using it to pay at any shop or any restaurant.
The obvious just like the gold coins and the properties being any legal tender in our country but all these things are legal and BITCOIN is just one of them.
Trading BITCOIN is 100% legal in our country; it’s legal to even exchange it. It’s just that it can’t be used as the payment system.
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