What is a Bitcoin ?

A term is usually used for Bitcoin that it is a cryptocurrency. Before understanding Bitcoin let's understand the term cryptocurrency.

It is framed from two words crypto which means hidden or secret and currency which means a type of money (metal, paper or digital) that a country uses.

 So cryptocurrency means a hidden currency here the term hidden refers to which does not have any physical existence so it can be stated that cryptocurrency is a digital currency.

 Currently there are more than 4000 cryptocurrency in the world and Bitcoin is one of the most popular cryptocurrency

A common question arises in the minds of many people that
"Is cryptocurrency legal or illegal "?
So answer to this question is that cryptocurrency is legal but it is not allowed as a legal tender of money.
To understand the legal tender of money let's take an example if A wants to purchase a television in against he cannot give shares of any company to the shopkeeper he is liable to give currency in return,  same is with cryptocurrency no one can exchange any product in against of cryptocurrency it will be considered as illegal tender of money.

BITCOIN 
•Bitcoin is a cryptocurrency a virtual currency which doesn't not have a physical existence.

•Bitcoin was developed in 2008 by Satoshi Nakamoto and was launched in 2009.

•Bitcoin is a decentralized currency for example when A wants to send money to B he require a intermediary that is the bank but when A  wants to send Bitcoin to B it does not require any intermediary to handle the transaction this transaction is independently between A and B.

•Every Bitcoin transaction are listed in public list through a blockchain.

•Blockchain is nothing but a pool of data that is linked up together and the blockchain is immutable that is one cannot make changes into the blockchain.

• Bitcoin occupies 65% of the market share amongst all the cryptocurrency.

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    " There are about 21 million Bitcoin in the world but 18.1 million Bitcoin are in circulation".

How are Cryptocurrency formed
Cryptocurrency are formed by the process of mining in which minors salt a very difficult problem this problem is not as easy as plus minus but are highly specialised powerful computers are required to solve the problem in India the trend of cryptocurrency is increasing day by day but there is no rule or guidelines regarding cryptocurrency.

• In 2018 RBI circulated a circular by giving orders to all financial institution to stop all services related to cryptocurrency but in 2019 Supreme Court cancelled these orders and after that transactions in cryptocurrencies are being done.

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ADVANTAGES OF CRYPTOCURRENCY
1. One basic advantage is that it does not have any intermediary that is both the parties are free to handle the transaction.

2. There are very less charges for exchanging Cryptocurrency.

3. Cryptocurrency are exchanged very fast from seconds to 10 minutes.

DISADVANTAGES OF CRYPTOCURRENCY
1. It is volatile that is it frequently changes taking example of bitcoin it was $ 36000 in january 2001 but today's price is $37148.60.

2.It is a decentralized currency that is no government intervention so if any wrong transaction or any fraud occurs there will be no governing body to solve it.

3. Not applicable everywhere.

4 Transaction are irreversible that is the transaction cannot be changed.

THANK YOU FOR READING TILL END

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