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1.What is Bitcoin?
Bitcoins are an anonymous, decentralised peer-to-peer payment network that is powered by its users with no central authority or middlemen. In other words, Bitcoin is cash for the internet.
In contrast to older forms of electronic money, no company controls Bitcoin, nor ever could: all the rules about how it works are embedded into the very operation of trade, including the rate of inflation and how to verify transactions.
Bitcoins is the most popular form of cryptocurrency , with number of users expected to reach 4.7 million by 2019. Other kinds include Litecoin, Dogecoin, Peercoin, etc.
2.Who developed the idea of bitcoins?
The idea of Bitcoin was conceptualised by Satoshi Nakamoto, an anonymous figure. In May 2008, he shared a white paper [PDF] about Bitcoin, a peer-to-peer cryptocurrency.
Without disclosing who he was, Satoshi outlined how the currency would work: bitcoins would be ‘mined’ by computer software, transferred directly amongst users and recorded in an untamperable ledger without the need of a third party.
Then he disappeared.
Part of Bitcoin’s appeal is Satoshi Nakamoto’s anonymity, who many view as a selfless act towards a new era of financial revolution. Online detectives have identified a few candidates, including a real-life Japanese person sharing the same name. Some even theorised that Satoshi Nakamoto is a pseudonym for a collective.
In May 2016, the Bitcoin community was shocked when Australian entrepreneur Craig Wright identified himself as Satoshi Nakamoto. Some people believe his claim, some didn’t, but on the whole the Bitcoin community is unaffected – the Bitcoin ecosystem is decentralised, and cannot be controlled by any person(s), including the creator.
3. How to Use Bitcoins?
Bitcoin can be used for spending, similar to money. Some people also keep them for investment purposes, while others prefer to use them as a method to make international money transfer.
Bitcoin exists electronically and is kept in ‘bitcoin wallets’. There are many types of bitcoin wallets: desktop wallet, mobile wallet, online/web-based wallet, hardware wallet and even paper wallet.
To read more about bitcoin storage, check out this article by CoinDesk. You can have as many wallets and bitcoin addresses (where you receive money from others) as you like.
4.How many people are using bitcoin?
Estimates vary – it is hard to find out the exact number of people who use Bitcoin. One way to measure number of bitcoin users is by measuring the number of bitcoin wallets.
According to CoinDesk’s State of Bitcoin and Blockchain 2016 report, bitcoin wallets doubled to 12.77 million in one year, from the end of 2014 to the end of 2015. Even though many bitcoin users have more than one wallet (it is common to hold a few wallets), this is an indication that the number of bitcoin users worldwide is increasing.
Read : Man buys ₹ 1700 of bitcoin, forgets about them, finds they're now worth ₹ 6 crore
Another way to estimate bitcoin usage is by the number of bitcoin transactions, which has steadily increased. Although this could mean that the same people are simply making more bitcoin transactions, it is fair to assume that there are new bitcoin users in the mix, too.
5.Who's making money from Bitcoin?
People who bought early and sold at the peak. The currency has been through two boom-and-bust cycles, with the cost of one Bitcoin rising from $2 to $30 in 2011, and then from $13 to $266 earlier this year. But having a fortune in Bitcoin is a bit like having a fortune in gold: you have to sell your holdings to really make the most of it.
6.Is it really popular?
7.How do I acquire bitcoins?
There are three main ways to get bitcoins: mine them, buy them, or work for them.
Bitcoin Mining
Bitcoin mining used to be really profitable. However at the current time it is no longer cost effective for the average individual. One will need to buy specialised Bitcoin mining equipment, get/rent dedicated spaces for them, and pay their associated costs (rental, electricity and cooling costs).
Buy Bitcoins
You can buy bitcoins from many online exchanges. There are a lot more options now than ever before – there are global bitcoin exchanges and also country-specific bitcoin exchanges. You can also buy them from other people via Localbitcoins.
Read : Man buys ₹ 1700 of bitcoin, forgets about them, finds they're now worth ₹ 6 crore
Read : Man buys ₹ 1700 of bitcoin, forgets about them, finds they're now worth ₹ 6 crore
There are other less effective ways to acquire bitcoins. You can get (very) small amounts of bitcoins from bitcoin faucets, which pay you to look at advertisements. You can get them as donations.
There are also bitcoin ‘investments’ but if you wish to not lose money, avoid companies that are listed in Badbitcoin Badlist.
8.How do I send/receive/spend bitcoins?
Bitcoin wallets come with bitcoin addresses, which represent a destination, similar to an email address. Bitcoin addresses are alphanumeric, between 27-34 characters in length.
Many bitcoin service providers have user-friendly user interface which allows users to generate bitcoin addresses, send and receive bitcoins.
To send bitcoins, users simply have to ensure positive balance in their bitcoin wallets, insert the receiver’s bitcoin address, and hit send. There is a small miner’s fee to process the transaction – miner’s fees are given as a reward and incentive to Bitcoin miners for maintaining equipment.
Bitcoin transactions usually take less than an hour to arrive, but it can take longer or shorter depending on the fee amount and the bitcoin service provider.
You can spend bitcoins anywhere that accept bitcoins as payment. You can also use a Visa/Mastercard-linked bitcoin debit card issued by companies like Wirex or Coinbase.
9.Where can I buy bitcoins in India?
3 most popular BitCoin Trading Platform's In India:
10.Are these legal ?
Legal status varies from country to country. In 2013, RBI said it had no plans to regulate Bitcoins, though it had earlier prescribed caution in dealing in them. A formal guideline is yet to come.
11.Can these be used in India?
Only with vendors who can accept them. One can also pay overseas vendors that accept Bitcoins from India. Some Indian startups also offer Bitcoin 'wallet' services.
Read : Man buys ₹ 1700 of bitcoin, forgets about them, finds they're now worth ₹ 6 crore
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