Elearnmarkets - Financial Market Learning
  • Categories
    • Basic Finance
    • Derivatives
    • Financial Planning
    • Fundamental Analysis
    • Technical Analysis
    • Marketshala
    • Miscellaneous
  • Language
    • English
    • Hindi
    • Bengali
No Result
View All Result
  • Courses
  • Webinars
  • Learn On Elearnmarkets
Elearnmarkets - Learn Stock Market, trading, investing for Free
  • Categories
    • Basic Finance
    • Derivatives
    • Financial Planning
    • Fundamental Analysis
    • Technical Analysis
    • Marketshala
    • Miscellaneous
  • Language
    • English
    • Hindi
    • Bengali
No Result
View All Result
  • Courses
  • Webinars
  • Learn On Elearnmarkets
Elearnmarkets - Learn Stock Market, trading, investing for Free
No Result
View All Result
Home Basic Finance
Bitcoins: The New Age Virtual Currency 1

Bitcoins: The New Age Virtual Currency

Elearnmarkets by Elearnmarkets
December 14, 2020
in Basic Finance, Capital Markets
Reading Time: 4 mins read
0
265
VIEWS
Share on FacebookShare on TwitterShare on WhatsApp

Bitcoin is a type of digital currency created in the year 2009.

The transaction does not involve any banks but it is created and held electronically.

It is created using software which solves mathematical problems.

It is the first example of cryptocurrency (a growing category of money worldwide).

Why bitcoins?

A Bitcoin is a cheaper alternative to existing currency since it is not subject to any regulation or tied to any country.

It does not involve any kind of credit card fees hence the small businesses or start-ups may like them.

Join TMP Join TMP Join TMP

Many people even look upon it as a good investment since they are expecting a significant increase in its future price.

bitcoin image

Characteristics of Bitcoin:

Bitcoins have several important characteristics which distinguish it from conventional currencies-

1. Its decentralized

Unlike conventional currency, the bitcoin network is not in a control of one central authority.

Every machine that mines bitcoin and processes transactions becomes the part of the network and work together.

It implies that no single authority can have influence over it.

Even if some part of the network is not operative or goes offline for any reason, the money will still be flowing.

2. Transaction fees are very minimal

The banks may charge you a hefty transaction fee for making international transfers, though bitcoin doesn’t.

Know more about Bitcoins in our free course: Get introduced to Bitcoins

3. It very fast

By the time, the bitcoin network processes the payment, the money will be transferred anywhere within no time.

4. It’s totally transparent

The full detail of every single transaction that ever took place gets stored in a general ledger known as blockchain so one can get the full detail there.

Say if you have a publicly used bitcoin address, it’s very easier to track that how many bitcoins are stored there.

5. It’s anonymous

The users will be able to hold multiple bitcoin addresses and they are not linked to addresses, names or other personal information.

Bitcoin price chart

How is it different from normal currencies?

1. Who created Bitcoin?

Bitcoin was proposed by a software developer named Satoshi Nakamoto.

It’s basically an electronic payment system based on mathematical proof.

The main idea was to create a device which is not dependant on any central authority, with a very minimal transaction fee and can be transferred electronically.

2. Who prints Bitcoin?

The normal currency is printed by Central Banks, which usually makes its own rules and are unaccountable to the masses.

The banks can print more money so as to cover the national debt leading to devaluation of country’s currency.

On the other hand, Bitcoin is digitally created by a community of people which can be joined by anyone. These are mined using computing power in a distributed network.

This network also allows transactions to be processed using virtual currency thus making bitcoin its own payment network.

3. What is the basis of bitcoins?

Conventional currencies are based on silver or gold, so theoretically you would get back the gold once you hand over the currency (though this doesn’t work in practice).

While cryptocurrency like bitcoins are not based on gold but based on mathematics.

People all over the globe are using software programs which use a mathematical formula to produce bitcoins.

So anyone can easily check it as the formula is freely available.

bitcoin
Source: www.money.cnn.com

How to acquire bitcoins?

1. Buying on the exchange

People can buy or sell bitcoins at several marketplaces called bitcoin exchange using different currencies. The largest bitcoin exchange is Mt. Gox.

2. Transfer

One can transfer or send bitcoin to others using computers or mobile application.

It’s as simple as transferring cash digitally.

3. Bitcoin mining

These days’ people are competing with each other to mine bitcoins by solving complex mathematical puzzles.

Presently within a time span of around 10 minutes, a winner will be rewarded with 25 bitcoins.

4. Owning Bitcoins

The bitcoins can be stored in a digital wallet which can be present in the computers users or in the cloud.

The wallet will act as a virtual bank account where the bitcoins will be easily received or send, save money or pay for the goods.

Bottomline

You can purchase any things electronically using bitcoin like any other normal currency.

The best thing about bitcoin is that it is decentralized which separates it from conventional money.

Moreover, its network is not controlled by any single institution.

However many countries have not granted legal status to Bitcoins due to their use in facilitating illegal activities.

Thus, Bitcoins have a long way to go before they can be used in tandem with conventional currency.

Keep Learning!!

Tags: digital currencyenglishinvestment basics
ShareTweetSend
Previous Post

বার চার্ট রিভার্সাল প্যাটার্নের সাথে পরিচয় (Introduction To Bar Chart Reversal Pattern)

Next Post

Where To Invest When Fixed Deposit Interest Rates Are Falling

Elearnmarkets

Elearnmarkets

Elearnmarkets (ELM) is a complete financial market portal where the market experts have taken the onus to spread financial education. ELM constantly experiments with new education methodologies and technologies to make financial education effective, affordable and accessible to all. You can connect with us on Twitter @elearnmarkets.

Related Posts

5 Best Practices in Your First Year of Stock Market Trading 2
Basic Finance

5 Best Practices in Your First Year of Stock Market Trading

May 15, 2023
1.4k
Understand the MSCI Index and its Rebalancing Impact on the Indian Stock Market 3
Basic Finance

Understand the MSCI Index and its Rebalancing Impact on the Indian Stock Market

May 12, 2023
2.2k
Tax Planning - 7 Changes in the Indian Financial Environment that you need to know this Financial Year! 4
Basic Finance

Tax Planning – 7 Changes in the Indian Financial Environment that you need to know this Financial Year!

April 18, 2023
1.3k
Last-Minute Tax Planning- 5 Common Mistakes that Taxpayers Make 5
Basic Finance

Last-Minute Tax Planning- 5 Common Mistakes that Taxpayers Make

April 12, 2023
1k

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Follow Us

Facebook-f Twitter Instagram Linkedin-in Youtube Telegram

Register on Elearnmarkets

Continue your financial learning by creating your own account on Elearnmarkets.com

Register Free Account

Download App

Categories

  • Basic Finance
  • Derivatives
  • Financial Planning
  • Fundamental Analysis
  • Technical Analysis
  • Marketshala
  • Miscellaneous

Popular On Elearnmarkets

  • Market Superheroes:
  • Vivek Bajaj
  • Chetan Panchamia
  • Ashish Kyal
  • Premal Parekh
  • Abhijit Paul
  • Jegan
  • Sivakumar Jayachadran
  • Vishal Malkan
  • Jyoti Budhia
  • Vivek Gadodia
  • Vishal Mehta
  • Piyush Chaudhry
  • Santosh Pasi
  • Gomathi Shankar
  • Market Superheroes:
  • Vivek Bajaj
  • Chetan Panchamia
  • Ashish Kyal
  • Premal Parekh
  • Abhijit Paul
  • Jegan
  • Sivakumar Jayachadran
  • Vishal Malkan
  • Jyoti Budhia
  • Vivek Gadodia
  • Vishal Mehta
  • Piyush Chaudhry
  • Santosh Pasi
  • Gomathi Shankar
  • Courses:​
  • Options Trading
  • Dow Theory
  • Momentum Trading
  • Stock Investing
  • Stock Market for Beginners
  • Harmonic Chart Patterns
  • Algo Trading
  • Elliot Wave Theory
  • Advanced Excel
  • Cryptocurrency
  • NSE Certification Course
  • Courses:​
  • Options Trading
  • Dow Theory
  • Momentum Trading
  • Stock Investing
  • Stock Market for Beginners
  • Harmonic Chart Patterns
  • Algo Trading
  • Elliot Wave Theory
  • Advanced Excel
  • Cryptocurrency
  • NSE Certification Course
  • Webinars:
  • Bank Nifty Scalping
  • Intraday Trading Strategies
  • Options Trading Strategies
  • Options selling
  • Price Action
  • Relative Strength
  • Tax Planning
  • Options Buying
  • Growth Stocks
  • Portfolio Management
  • Relative Strength Index
  • Risk Management
  • Renko Charts
  • Crude Oil
  • Traders Psychology
  • Moving Average
  • Multibagger Stocks
  • Webinars:
  • Bank Nifty Scalping
  • Intraday Trading Strategies
  • Options Trading Strategies
  • Options selling
  • Price Action
  • Relative Strength
  • Tax Planning
  • Options Buying
  • Growth Stocks
  • Portfolio Management
  • Relative Strength Index
  • Risk Management
  • Renko Charts
  • Crude Oil
  • Traders Psychology
  • Moving Average
  • Multibagger Stocks
  • Free Learning Modules:
  • Intraday Trading
  • Options Scalping
  • Swing Trading
  • Financial Modelling
  • RSI Indicator
  • Bollinger Bands
  • Pricing of Futures
  • Personal Finance
  • Initial Public Offerings (IPO)
  • Value Investing
  • Technical Indicators
  • Candlesticks
  • Chart Patterns
  • Option Greeks
  • ELSS Funds
  • Banking and Insurance
  • Real Estate
  • Gold
  • Free Learning Modules:
  • Intraday Trading
  • Options Scalping
  • Swing Trading
  • Financial Modelling
  • RSI Indicator
  • Bollinger Bands
  • Pricing of Futures
  • Personal Finance
  • Initial Public Offerings (IPO)
  • Value Investing
  • Technical Indicators
  • Candlesticks
  • Chart Patterns
  • Option Greeks
  • ELSS Funds
  • Banking and Insurance
  • Real Estate
  • Gold
  • Book Summaries:
  • Rich Dad Poor Dad
  • Psychology of Money
  • The Intelligent Investor
  • The Richest Man in Babylon
  • Think and Trade Like a Champion
  • Value Investing and Behavioural Finance
  • Trading in the Zone
  • Learn to Earn
  • Book Summaries:
  • Rich Dad Poor Dad
  • Psychology of Money
  • The Intelligent Investor
  • The Richest Man in Babylon
  • Think and Trade Like a Champion
  • Value Investing and Behavioural Finance
  • Trading in the Zone
  • Learn to Earn
  • Tools:
  • CAGR Calculator
  • SIP Calculator
  • eLearnOptions
  • Future Value Calculator
  • Present Value Calculator
  • Atal Pension Yojana
  • Cost of Delay Calculator
  • Become a Crorepati
  • Tools:
  • CAGR Calculator
  • SIP Calculator
  • eLearnOptions
  • Future Value Calculator
  • Present Value Calculator
  • Atal Pension Yojana
  • Cost of Delay Calculator
  • Become a Crorepati

© 2023 Elearnmarkets. All Rights Reserved

  • Visit Elearnmarkets
  • Courses
  • Webinars
  • Financial Guides
  • Get Free Counselling
  • Visit Elearnmarkets
  • Courses
  • Webinars
  • Financial Guides
  • Get Free Counselling

Get Elearnmarkets App

No Result
View All Result
  • Article Categories
    • Basic Finance
    • Derivatives
    • Financial Planning
    • Fundamental Analysis
    • Technical Analysis
    • Marketshala
    • Miscellaneous
  • Language
    • Hindi
    • Bengali
    • English
  • Courses
  • Webinars

© 2020 Elearnmarkets All Rights Reserved