Bitcoin is a decentralized cryptocurrency that uses peer-to-peer technology for instant payments between people or businesses. It can be bought and used as a currency and also is a type of investment. Bitcoin has been around since 2009. It hit its all-time high in price on March 13, 2021, when 1 bitcoin was worth $61,683.86.
Satoshi Nakamoto first proposed Bitcoin in a 2009 white paper as a means of payment based on mathematics. The idea behind Bitcoin was to create a currency system that didn’t involve banks and instead would operate using a decentralized ledger known as blockchain.
Definition and examples
Bitcoin is a form of digital currency that is created and held electronically on a computer.
Bitcoins are not paper money like dollars, euros, or yen controlled by central banks or monetary authorities.
Bitcoin is the first example of a cryptocurrency, which is produced by people and businesses all over the world using advanced computer software that solves mathematical problems.
Means of exchange worldwide
Bitcoin has several attributes that set it aside from traditional currencies as a pan-global means of exchange. Central banks or monetary authorities do not control the number of bitcoins, and Bitcoin is decentralized, making it global. Anyone with a computer can set up a Bitcoin address to receive or transfer bitcoins in seconds. Bitcoin is anonymous, and the cryptocurrency allows users to maintain multiple addresses, and setting up an address requires no personal information.
How does Bitcoin works
Bitcoin is a method of payment or transfer of value that is independent of governmental authorities like central banks that traditionally control the money supply and the availability of currency in the global market. Transfers are made via computer immediately with low transaction fees.
Bitcoin’s value first surpassed $1,000 in January of 2017 before hitting a peak later that year. Since that time, its value has seen periods of tremendous growth as well as big sell-offs.
Is Bitcoin legal?
Bitcoin and other cryptocurrency is legal in the U.S. and a number of other countries around the world. Central banks in most countries have warned citizens that Bitcoin and other cryptocurrencies are not legal tenders and not guaranteed by any government, therefore, any transactions are at the person’s own risk.
Indian scenario
More recently, in the last week of March 2021, the government made it mandatory for companies to disclose investments made in cryptocurrencies. The move was welcomed by the crypto sector operating in the country. Experts said this move would open the door for all Indian companies to have Crypto on their balance sheets.
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