What is Bitcoin and Cryptocurrency

History Of Bitcoin:

Bitcoin is a cryptocurrency used as a type of digital payment system. It was introduced by an unknown person or group of persons later came to be known as SATOSHI NAKAMOTO. This digital mode of payment was introduced in 2009.

What is Bitcoin?

Bitcoin system was called the first decentralized digital currency.

It works without any central depository. Transactions are dealt without any medium i.e these take place between the users directly and There are no transaction fees too.

These can be used to buy assets undesignated. In this type of payment system, payments are very cheap and easy at international exchange because bitcoins are not tied to any country or are subject to regulations. Most of the small businesses prefer bitcoin system because there is no fee for credit card.

Bitcoins are stored in a “digital wallet”. The wallet is a kind of virtual bank account that allows guests to send or receive bitcoins. This digital wallet exists either in a cloud or on a guest’s computer.

In the payment mode through bitcoin, names of buyers and seller are never revealed and only their wallet ID’s will be shown. So, users can buy or sell anything easily.

EFFECTS OF BITCOIN PAYMENT MODE:

As we know that everything has negative as well as positive aspects and so do cryptocurrencies have. Cryptocurrencies are very useful for digital payment but are also harmful because of concealing the name of users. It leads to furtive, illicit activities and So, buying drugs online and such type of things become very easy.

In India, recently RBI has been repeatedly educating everyone about the usage of cryptocurrencies, flagging an agglomeration of concerns. According to some media reports, there have been growing numbers of investors in such currencies over last few years.

The RBI had strictly mentioned on its website in February this year,

“Any user, holder, investor, merchant or trader dealing with virtual currencies are doing it at their own risk”.