Bitcoin- A Beginner Guide
Every now and then people are talking about Bitcoin whether it is a social media site Twitter or a real-life uncle. Bitcoin is addressed at every place so let’s just dig deeper to know what it is and how it is going to impact the market over the succeeding decades.
First things first, What is a bitcoin? It is digital cash that can be sent anywhere in the world with extremely low fees. It was first introduced by Satoshi Nakamoto in 2009. However, nobody knows who this person is and the identity remains anonymous. Furthermore, with respect for bitcoin's creator, there’s a small unit of Bitcoin know as Satoshis.
Bitcoin as you now know is a cryptocurrency that can make you a billionaire which is why it is so popular. Other than being rich, people like to be anonymous about the income they own and which is exactly what Bitcoin does. It keeps pseudonymity by representing cryptographic key pairs rather than the owner’s name.
Some other features about Bitcoin is that:
1. It is faster than any of the other methods of transaction. For instance, A bank takes up to three days to encash a cheque but with Bitcoin, it is effortless.
2. Since Bitcoin is not in the form of paper or anything. It is easy to store.
3. Purchase and Sale of Bitcoin is an easy task, one can make an account within a minute, unlike Banks who follow a procedure.
The concept of Bitcoin comes along with some cons. Taking its Peer-to-Peer technology as an example, if one loses his Bitcoins by any means. He has no one to blame but himself. Although, it brings into the world some favourable aspects too viz, no tax {as there is no third party intervention}, low fraud risks {the hackers find it difficult to hack the system}, transparency and complete privacy. Bitcoin is famous for its risk but no one can deny it has been a profitable journey for those who mine. Some of the greatest examples of Bitcoin investors are Barry Silbert and Dan Morehead.
At last, if we talk about how Bitcoin is being accepted as a legal tender. El Salvador is the only country to accept Bitcoin as a legal tender and countries like The United States, Canada and The UK are trying to find ways to accept it but countries like Vietnam, China, Bangladesh and Russia are opposed to any use. In India, Bitcoin is legal but there always has been confusion since there are no regulations in the country yet. Nonetheless, the profit earned by selling the cryptocurrency is taxable as Business Income.
Overall, Bitcoin remains a safe legal area for most parts of the world. In case you’re interested in obtaining more knowledge about it. I suggest you go through these books- Mastering Bitcoin, Cryptoassets and Digital Gold.
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