What is Bitcoin?
Bitcoin coin can be considered as “Digital gold” or “Digital Cash”. In both cases, Bitcoin has an inherent value which people like you and me can use to make our financial lives better. The price of Bitcoin on January 2017 was 900 dollars approximately ; now on June 2017 the price of Bitcoin stands at 2700 dollars. The price of Bitcoin increased by 3 times during the 6 months.
But be warned though the price of Bitcoin is highly volatile also. Suppose you buy for 900 dollars today. Tomorrow the price may drop to 700 dollars. Two days later the price may come up to 900 dollars or more. There is high volatility so only highly curious and patient mind should go behind Bitcoin otherwise you risk loosing all your savings.
If you are patient enough and are willing to do research on Bitcoin, then there are several options to make use of this financial tool. The simplest thing you can do is buy and hold Bitcoin for long term.
In India there are two main exchanges that allow purchasing and selling of Bitcoin. They are Zebpay and Unocoin. Zebpay is Mobile only. Unocoin is both mobile and web. You need to provide your pan card details and your saving bank account details. Setting those up are really simple and you can easy start buying Bitcoin in a jiffy.
Just buy bitcoin and hold for long term. Do research and be updated about various developments in the Bitcoin world. Coindesk is a great website where you will get the latest updates regarding Bitcoin. Going through this website on daily basis can keep to informed enough.
Coming to the technical definition of Bitcoin : ” Bitcoin is a peer to peer cryptocurrency using which payment can be sent and received”. Bitcoin uses a protocol named Bitcoin itself and the Internet for accomplishing payment transfers and settlement. There are many other components working for the Bitcoin network. They are:
Users: users refers to anyone who uses Bitcoin
Nodes: Nodes are the entities which propagate the transaction done by users
Miners: Miners are the entities that finalize transactions made by users. After finalizing, the transaction details are saved in a distributed ledger. Only miners add trasations to the ledger. Miners should have huge computing power. Their efforts are compensated by providing them with Bitcoins for every successful transaction they write to the distributed ledger.
If you want to know more about the technical working of Bitcoin, find below the link to a great book called Mastering Bitcoin by Andreas Antonop.