|What is Bitcoin?||Countries using Bitcoin|
|10 Facts about Bitcoin||Value of Bitcoin|
Bitcoin is a cryptocurrency. In short, it is the easiest statement for worldwide payment. It is the first decentralized digital currency as the system operates without Central Bank and single administration. The term Bitcoin was organised by a group of unknown people known as Satoshi Nakamoto. Basically, it is an open source software that was invented in the year 2009.
In case of Bitcoin, the transactions takes place between the users through internet directly. No intermediary is involved in the transaction. Bitcoins are created for the process of mining. Bitcoin have come into trend since 2009 and in today’s generation, it has increased a lot. Nowadays Bitcoin are exchanged for several currencies, products and other services. As per February 2015 merchants have also started accepting Bitcoin instead of money. As per a study conducted by University of Cambridge, in 2017, the result observed that 2.9 to 5.8 million users use cryptocurrency wallet most of these users are bitcoin.
Bitcoin was defined in a white paper which was published in 31st October 2008. Some sources and networks preferred to use Bitcoin in the lowercase. The Wall Street general, The Chronicle of Higher Education and The Oxford Dictionary all support the usage of lowercase of Bitcoin.
BTC and XBT are the ticker symbol used to represent Bitcoin. The smallest unit of Bitcoin is called Santoshi, a homage to the creator Satoshi Nakamoto. The Other unit is called MilliBitcoin.
The online world comes with various forms of trading options. In exchange of Banking, payment and stock options that are a option online, new currencies are being introduced in the market. One such currency is Bitcoin. These Cryptocurrencies and digital currencies comes with encryption which ensure security and validity to the coins. The feature real value. Cryptocurrencies and digital currencies are exchange for USD, GBP and other forms of physical currency via online system.
If you are planning to own Bitcoin, then it is a pretty much essential for one to be aware of the following points:
It isn’t controlled by one single entity
This at first might sound pretty confusing. Currency and money is controlled by banks and the values rises and falls based on the Global market. However, money and currency can be held by the owner. Bitcoin, however, does not obey all these rules. Not one single entity controls Bitcoin. It can be controlled by anyone who uses the Bitcoin software. The software control all the currency logs and validates all those who log and control activities regarding the Bitcoin around the globe.
Bitcoin is limited
People usually believe that since Bitcoin has no physical existence, there won’t be any bills that wear printed on mint records so there would be infinite number of Bitcoins. But it isn’t the case, if Bitcoins would have existed in infinite number, it would be devalued and considered worthless. Exactly, there are 21000000 Bitcoin.
Bitcoins have no inherent value or set value
If Bitcoin is closely observed, it can be learnt that the pictures say it is worth $1. The digital codes are worth money because it is used for trade business. However, this fact needs to be observed that Bitcoin has no particular set value. The more popular Bitcoin the more value of individual Bitcoin.
As per present census, Bitcoin are getting popular day by day and its value is going on increasing day by day.
Bitcoin is transparent in nature
The most unique thing of Bitcoin is that it is transparent in nature. Bitcoin is transparent only in case of transection and amounts. Bitcoin isn’t transparent as far as personal data. Every owner would be able to track who would be in the chain. This help in building trust and ensure security amongst the Bitcoin community.
Bitcoin mining is possible
Mining Bitcoin usually refers to solving computer programs. The computer programs usually solve mathematical problems that help in verifying transaction. The transaction verification can be that of anywhere worldwide. Bitcoin owners get certain Bitcoin as reward points for solving the problems.
Transaction cannot be reversed and pay cannot be forced
One cannot force the Bitcoin to be paid. Transactions also cannot be revoked. For example, if a product is bought from Bitcoin then the transaction cannot be revoked, the bill for forcing the way can also not be repeated.
Very little money can also be transferred
If one has to transfer money internationally, physical currencies need time to be transferred. However in case of Bitcoin, transaction fees will be available and money will be available instantly.
Bitcoins are held in digital wallets
Just Like bank accounts are used for safeguarding your money, similarly digital wallets safeguard Bitcoins. As soon as one buys Bitcoins, immediately he is registered for the Bitcoin wallet. Bitcoin digital wallet are like physical wallet. However, one just cannot afford loosing these. If one lose the Bitcoin wallet it is gone forever. Bitcoin digital wallets are very secure. It is impossible to take out money from these wallets except for the owner himself. Also, knowing a bitcoin address would help track number of Bitcoins.
Losing a wallet means losing Bitcoin “forever”
Even if there is a record of all your Bitcoins you cannot claim them, if you have lost wallet. They will be on the blockchain but you cannot use them since you have lost the wallet. Bitcoins come with their unique key codes. Hence, they are essentially removed from the circulation if they are not used.
Buying things with bitcoin is possible
Bitcoins are actually used as real currencies and can be used to buy things. There are merchants who accept Bitcoin as payment for both online and offline stores. Bitcoin can also be used in restaurants and events local Pizza. Bitcoins can also be used to donate Charity and buy gold things. Online stores like newegg, overstock, Microsoft, Dell and other accept Bitcoin.
Since, Bitcoins are anonymously transacted there are many chances of fraud and other criminal activities. Transaction of Bitcoin can be done anytime and from anywhere globally. If Bitcoin is used to purchase good things, it can also be used to purchase illegal things. However, there are some countries that have banned legal and then some term it as illegal. But, there is no single country that has accepted Bitcoin as a substitute to its legal currency.
Countries that legalized Bitcoin
There are some countries that have legalised the usage of bitcoins for doing business. But some regulatory laws were enacted by these companies before completely legalising the usage of bitcoins. Though they have agreed to legalize it, but they refuse to identify it as the country’s currency, so it can be said that bitcoin is limited till business purpose only. Mentioned below are the countries that have legalized the transaction for Bitcoin:
The United States
The US has expressed a very positive approach towards Bitcoin and has legalized its usage. There are several government bodies that work towards reducing the illegal usage of Bitcoin. Bitcoin is therefore not considered as a currency but as a money service business. It is placed under Bank secrecy act. Internal revenue service has categorised Bitcoin simply for taxation purposes and not others.
Similar to the United States, Canada also considered Bitcoin exchange only for money services business. Bitcoin transactions are simply viewed as barter transaction. The income gained is simply business income. As per the Canadian government Bitcoin need to be registered under Financial Transactions and Reports Analysis Centre (FINTRAC). Bitcoin is viewed as commodity by the Canada revenue agency (CRA).
Australia has also allowed Bitcoins. It considered Bitcoin for better transactions. It also allows mining of Bitcoin.
The European Union
Most of the countries of Europe considered usage of Bitcoin as legal and has also provide the licence. Finland, Belgium, United Kingdom, Germany and Bulgaria also allow exchange of Bitcoins. In Finland and Belgium Bitcoins are provided the exempt status of Value Added Tax (VAT). United Kingdom and Germany or also open to Bitcoins but taxes are charged up on them accordingly. National revenue agency, Bulgaria also brought Bitcoin within its existing laws.
Countries that didn’t approve of Bitcoin
A section of the world legalized the usage of bitcoin, but another section didn’t because of its transparent nature. Countries that didn’t legalize bitcoin stated that since no entity has the control over it, the chances of criminal activities are pretty high. Its decentralized nature would pose threat to the currency of the country. Illicit activities like drug dealing and money laundering would become prevalent due to the usage of bitcoins. Therefore, mentioned below are the countries that did not approve of Bitcoin:
The capital control part of the monetary policy prevents the flow of any foreign currency in Iceland. Foreign exchange with bitcoin is completely banned in Iceland. It is so because trading through cryptocurrencies is strictly against the Foreign Exchange Act of the country.
Since the very beginning Vietnam had been against the usage of bitcoin for trade business. It linked the usage of bitcoins to illegal activities like money laundering. After several discussions, the state bank and Vietnamese government declared the usage of bitcoin illegal for both financial institutions and citizens who would hold the bitcoin and trade with it.
The usage of bitcoin and other cryptocurrencies is strictly banned in El Banco Central de Bolivia.
Exchange of bitcoins as a form of trade is also considered as illegal in Kyrgyzstan.
By a majority of vote, bitcoin and other cryptocurrencies were banned in Ecuador. However, the government is now planning to come up with its own form of cryptocurrency that would help in trade business.
There is still a doubt regarding the legality of bitcoin in Russia. It is a matter of dispute. The Ministry of finance is planning to pass a law very soon that would put a ban to the usage of bitcoin in Russia.
China is the world’s largest bitcoin market. Financial institutions are banned from using bitcoins. However, the individual citizens are allowed to deal with bitcoins. The Bitcoin culture is one most thriving cultures of China.
The value of bitcoin fluctuates every second. In the blink of an eye you have an altogether different value of Bitcoin. The more popular it gets, the more is its value. No one in the market is aware of the actual value of bitcoins. It set its highest record on 17 December when it crossed the $19580 mark. But soon it tumbled down to $12000 within just a number of days. Last week, it almost fell by $2000 slipping below $11000 which is quite unexpected. Its value has changed about 1425% since the last year. Recently, bitcoin beat down the value of gold in the market.
Bitcoin is volatile and there is always a change in its value. Nowadays, with such high values of bitcoin, people tend to invest on it. The current value of bitcoin in India Rupee is Rs 896536.72
Future of Bitcoin
Bitcoin’s value is increasing day by day and may drop off too. No one is aware as in what will happen the next moment. Therefore, mentioned below are some of the predictions about the future of bitcoin:
- Bitcoin regulation in almost all the countries would be legalized.
- Merchants would soon begin to accept bitcoins. For example, if a merchant refuses to accept bitcoin he would accept it, once he is asked repeatedly about it.
- Currently, buying bitcoins is a tough process since it is restricted in many countries. But in the coming future, bitcoins would be available hence the process of mining and buying bitcoins will be easy.
- In the future, bitcoin would evolve as a protocol.
- The chain reaction of the bitcoins would become more prevalent. This chain system is very much necessary for proper functioning of bitcoin.
Bitcoin now is becoming like a trend. And it is expected that in the coming time, it will make a huge system for money transactions in the world countries.