What is Bitcoin and what is the future of Bitcoin?

Bitcoin: Many say online currency. Many people think it is the currency of the future. Some say there is a big flaw in the whole system. Currently, the use of Bit Coin is increasing worldwide. Bitcoin is a token currency transacted through an open source cryptographic protocol. For example the currency for our country is rupees, dollars for USA. But Bitcoin is a currency that has no physical properties. It means it cannot be grasped or touched. It is usable only through internet. Again there is no financial institution to regulate it. Ripple, Litecoin, Ethereum, Mofiz Coin are among the digital currencies that are not only Bitcoin.

Nowadays, many people are involved in various criminal activities using this online currency. Using or trading these cryptocurrencies or online currencies is prohibited or a punishable offense in Bangladesh. But it is not that Bitcoin is not being used in Bangladesh, but since it is banned, it is difficult to tell the number of users. Inconspicuously, the use of this banned Bitcoin is increasing. Let’s know the origin of Bit Coin.

What is Bitcoin?

Bitcoin is a type of crypto-currency or virtual currency. This currency is traded through the internet. At the end of 2008, a Japanese citizen named Satoshi Nakamoto or a group of software scientists invented this ‘cryptocurrency’. However, the real name or identity of this person is not yet known.

What or How Bitcoin Mining is Generate: 

Bitcoins are generated through the process of mining. Bitcoin is commonly used for online transactions. When Bitcoin is transacted online, it is necessary to verify whether the transactions are correct. And those who verify this transaction are called miners. And the whole process of verification is called Bitcoin mining.

How Bitcoin is used: 

It is exchanged directly (peer-to-peer) between two users using the Internet without revealing their identity. This transaction information is secured through the blockchain network, but there is no central bank-like authority to oversee the transactions of this currency. New bitcoins are generated by this miner. After Bitcoin is created or purchased, it is credited to the customer. Later he can use them to buy or sell products. If sold, it can be accepted in conventional currency instead of Bitcoin. Even though transactions are done using different computers, the information is updated on a central server.

Bitcoin Value: 

The lowest unit of Bitcoin is called 87.1 crore 87 is 1 bitcoin. Transactions are done from customer to customer device. Bitcoin price fluctuates on transactions. 1 Bitcoin is equal to 32570.10 USD. 1 Bitcoin is equal to Tk 2799225.09 in Bangladeshi value (June 21, 2021).

Bitcoin Rivals: Bitcoin is a type of cryptocurrency. Not the only cryptocurrency. After the success of Bitcoin, more than a thousand such virtual currencies were launched. Not all, however, have been as successful as Bitcoin. However, this hints at a future financial system based on virtual currencies.

Disadvantages of using Bitcoin

No Institution of Regulation:

Since Bitcoin is an online currency, there is no bank or central bank to regulate this currency. As a result, Bitcoin has become a tool for illicit trade and money laundering. Loss of Investment or Fraud: Since the return on investment in crypto-currency or digital currency is high, many people are getting scammed by investing or buying it. Because there is no opportunity to reveal the identity of the person who is having sex.

Technical Weaknesses – Confirmation Time Delay

As Bitcoins travel peer-to-peer, it takes many seconds for a dealings to be confirmed from person-to-person pc. Inside these few seconds, the unscrupulous person using a fast click will deposit identical bitcoins to a unique recipient for a second payment. Though the system ultimately doubles disbursement and additionally ignores the dishonest second dealings, if the second recipient transfers the merchandise to the dishonest emptor before the dishonest dealings is confirmed, the second recipient loses the payment and therefore the product. 

Human dishonesty – pool organizers unfairly take pieces of the share: Since bitcoin mining is best achieved through pooling (joining a group of thousands of other miners), the organizers of each pool choose how to split the bitcoins they discover. Bitcoin mining pool organizers can freely claim more bitcoin mining shares for themselves.

Mismanagement of people – online exchanges:

 People operating on unregulated online exchanges that trade cash for bitcoins may be dishonest or incompetent. The difference is that conventional banking losses are partially insured for bank users, but Bitcoin exchanges have no insurance coverage for users.

Not created by a central bank or controlled by a government: Banks do not log money movements and government tax agencies and police cannot trace this money. This may change, as regulated finance threatens government control, taxation and policing. Due to the lack of government oversight, Bitcoins have become a tool for trade and money laundering. The price of Bitcoin has skyrocketed in the past as wealthy criminals bought large amounts of Bitcoin. People can lose out as an investor because there is no regulation.

Countries where Bitcoin is banned: Bitcoin is now legally recognized in many countries around the world. However, Bitcoin is still banned in countries like Bangladesh, Egypt, Nepal, Ecuador, Bolivia, Kyrgyzstan, Algeria, Morocco etc.

What is the future of Bitcoin?

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