Bitcoin
A Bit About Bitcoin
The changing technical scenario in the world has caused the discovery of the new virtual currency Bitcoin. It comes under the category of best cryptocurrency that utilizes the blockchain technique to carry out its transaction. It is believed that bitcoin's network was realized in 2008 although it was launched in 2009 by an anonymous person Satoshi Nakamoto. The networks of transactions are controlled by people called 'miners' who use mathematical formulas to run them. This new currency doesn't work under government authority which raises lots of issues regarding its trustfulness.
The question that gets raised in our mind is whether it is a 'real' currency or not. In many ways, it differs from the 'Fiat' currency that is widely accepted. They have a stable value as well as a recognized tender from the government. Currently, Bitcoin shows a promising field of progress given that we have a substitute for decentralized currency. The autonomous feature of currency easily allows people to change their money supply without any fuss and intervention from banks. This movement depends on the blockchain which is an interlinked block of data. Although banking also uses this technique as we can see in NFT (National Electronic Fund Transfer) however it circulates under the government. Let us look at an example, Sara sends Ayesha $5 and there is no risk that this money will be sent to someone else as it can be easily verified by examining the blockchain. Even though Bitcoin is regulated by the people who maintain the network of money supply and they can easily change its monetary value. At this moment we don't know how secure this process is but it seems in the future it will boom.
In India, the government has regulated rules and regulations regarding its use by bringing it under RBI Act 1934. They intend to charge tax on it but for while there are no clear rules and regulations and Bitcoin is neither legal nor illegal in India. The value of Bitcoin is the highest because of its limitation of around 21 million. Other reasons can be the impact caused by the pandemic as people started accepting it and few companies are investing in Bitcoin like Tesla invested $1.5 billion. Due to its easy accessibility, we can assume that it may give us a new, smooth and productive economy in the coming days.
*Do you guys feel like it’s a big change? Give your point of view in the comment box.
