What is Bitcoin? How is Bitcoin managed?

Let's know what is Bitcoin? How is Bitcoin managed?

What is Bitcoin? How is Bitcoin managed?

Bitcoin is the most popular cryptocurrency. Currently, the 1-bit coin is worth more than 44 lakhs in Bangladeshi taka. It is a type of decentralized digital currency. Anyone can trade in Bitcoin anonymously. Bitcoin's motto is, "It is better for no one to control the currency than for a few to control the currency." Many consider Bitcoin the currency of the future. Today's report will discuss Bitcoin.

How did the journey of Bitcoin begin?

In order to easily understand Bitcoin well, one must understand the advantages/disadvantages of the developing economy of the present world. We trust and deposit our hard-earned money in various banks to keep our financial assets safe. But some corrupt bank officials cheat with customers' money. The global economic recession of 2008 is one such example. Every time a businessman invests in a very risky business by robbing the American people of their money from the banks and taking huge loans, the business loses. Naturally, they could not return the money. As a result, a terrible situation is created all over the world. It is not only the bank borrowers who are responsible for this but the wrong policies and mismanagement of the American government. Since the global economy is interconnected, it didn't take long for the American recession to spread to other countries. Many established in that economic depression then became angry with the American people and the government. Because the old centrally controlled financial system came down. In such a situation, a new type of monetary system is introduced. Which is called cryptocurrency. And the first experimental currency of this cryptocurrency is Bitcoin. Bitcoin was born to operate an independent financial system avoiding all forms of financial institutions and government interference. This money is not confined to the hands of a few individuals but Bitcoin is controlled through a computer network of countless individuals spread across the globe.

The bitcoin.org website was shut down on August 18, 2008. In November of that year, someone under the pseudonym "Satoshi Nakamoto" published an article about what Bitcoin is and how it works. In 2009, Bitcoin started trading by giving Bitcoin to one person.

How does bitcoin work?
How does bitcoin work?

Bitcoin is a peer-to-peer system. That is, the transaction is completed directly between the computer network of the sender and receiver. So no organization is needed here. It is not possible for a third party to control the system other than the person making the transaction to. Cryptography is the process by which financial transactions are completed in cryptocurrencies such as Bitcoin. Transactions are authenticated by cryptography and completed through the blockchain. Blockchain is an open ledger that cannot be tampered with by anyone like a corrupt banker. Generating new ones goes through a very complex computing process called mining. Even a few years ago, mining could be done on ordinary home computers, but today, to reach a profitable state by mining Bitcoin, it is necessary to spend several crores of rupees to build a small network. Still, there is no hundred percent guarantee of profit through this investment. Bitcoins cannot be produced at will, the number of Bitcoins can never exceed 210 million. Each Bitcoin is divided into several parts. These are called dumping. No new bitcoins can be produced after a certain number of years. Just as the price of gold rises due to demand, the demand for Bitcoin is also increasing day by day.

How did Bitcoin gain popularity? And how does it run its activities?
Bitcoin was not so popular at one time and was prone to sell at a higher price. Over the past few years, Bitcoin has continued to sell for more than expected. Bitcoin's value nearly halved in January 2018 due to a large volume of suspicious transactions and fraud. Since then, many have expressed doubts about the cryptocurrency's true value, although now the Bitcoin market is much more stable than before. Several major organizations like Microsoft support Bitcoin trading. And the interest is more than a huge amount. Such a huge amount of fuel is consumed, more than the fuel used in many countries. Building this server is having an impact on climate change. Experts are currently channeling their energy into Bitcoin's slowdown. This popular network processes 24000 per second. Bitcoin, on the other hand, can only complete seven transactions per second. Any currency has two main aspects effective exchangeability and currency stability.

What is Bitcoin? How is Bitcoin managed?

Is bitcoin safe?
Experts say Bitcoin has neither of these, and an important aspect is that no information is known about Bitcoin transactions. That is, transactions are done anonymously. Because of that, at one time, people were involved in various types of criminal activities using Bitcoin. Bitcoin exchange on a website in that village is like heroin. They sell dangerous drugs freely, and besides black market and money laundering bitcoins are used. Currently, there are many bitcoin exchanges online where you can sell any currency and convert bitcoins to any other currency. All accounts are prohibited without the approval of the central bank of any country. Bitcoin is banned in many countries. Transactions were released in 2018 through a circular 2017 banning all transactions including Bangladesh. In 2021, Bangladesh Bank said it is not a crime to store and trade cryptocurrency ownership even if it is not transacted. Recently, America has officially recognized Bitcoin as the first country in the world. Bitcoin is banned as a whole without the approval of a country's central bank. In 2018, Egypt's friend Mukti issued a fatwa. 21 Bangladesh Bank stated that it is not a crime to own and trade cryptocurrency even if it is not being traded. More recently, it became the first country in the world to officially recognize Bitcoin.

Current condition of Bitcoin?
Bitcoin is currently a very popular cryptocurrency internationally. It is a more popular currency among people as it is managed without government interference. Earlier people used to have a lot of fear about Bitcoin. As people were afraid to trade in Bitcoin. There was doubt about whether his money and financial assets would die, whether he would lose, or whether Bitcoin had any value. Those who invested in Bitcoin in the past with so much doubt, fear, fear, loss, etc., are millionaires today. As we look at the current market, we will see all aspects of Bitcoin including information and criticism, and discussion. However, different countries have different obligations. Bitcoin is completely illegal in all countries, as there is very little chance of the government interfering with Bitcoin transactions. Moreover, many illegal activities are done using Bitcoin, so the government does not want anything illegal to happen in its country. However, in many countries, Bitcoin is officially legal. In this digital age, paper currency will slowly disappear. Online currencies like Bitcoin will rule.

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