Revolution in Money has been happening since stone age, and today in the Information Age also we are witnessing some great changes in the world of Money. Bitcoin is one such change. We might have heard about Bitcoin and it’s fluctuating values every now and then. Let’s take a look at the first ever decentralized currency.
Bitcoin: Bitcoin is the first ever Decentralized Crypto Currency that runs on the internet. It was invented by an unidentified programmer by the name of satoshi nakamoto in 2008 and was released as an open source software in the year 2009.
What is Bitcoin?
Bitcoin is the first ever Decentralized Crypto Currency that runs on the internet. It was invented by unidentified programmer by the name of satoshi nakamoto in 2008 and was released as an open source software in the year 2009. These are not printed like Rupees or Dollars or any other centralized currency. Instead, they’re produced by people, and increasingly businesses, running computers all around the world, using software that solves mathematical problems (i.e by bitcoin mining).
What is Satoshi?
Only 21 million Bitcoins can ever come into existence. Currently, there are about 14 million of these in the market. So, there are about 7.5 billion people in the world, then how this currency can serve the need of so many people? Well, the answer is you can buy/sell/spend even a fraction of bitcoin. You can break bitcoin up to 8 decimal places and the smallest unit of bitcoin is called satoshi.
1 bitcoin= 100000000 satoshi
1 satoshi = 0.00000001 bitcoin
So you can buy/sell/spend bitcoins up to 8 decimal places.
Characteristics of Bitcoin
- Decentralized: It means that it is not owned by any central government. That is why the value of bitcoin fluctuates rapidly.
- Easy to setup : While opening account in conventional banks, you need to go through so many phases that is so tiring sometimes.
- Anonymous : You can hold multiple bitcoin addresses, and they aren’t linked to names, addresses, or other personally identifying information.
- Completely Transparent: Bitcoin stores details of every single transaction that ever happened in the network in a huge version of a general ledger.
- Little or No Transaction Fees: While your banks may charge hefty fees for international transactions. Whereas Bitcoins doesn’t charge any fees for transactions.
- It is Fast : You can send money anywhere and it will arrive minutes later depending on bitcoin network.
- Transactions are Irreversible: When your bitcoins are sent, there’s no getting them back, unless the recipient returns them to you.
What is Bitcoin Mining in nepal and Can You Mine Bitcoins in Nepal?
Bitcoin is more like commodity today, than a currency. It’s value is continuously fluctuating like that of precious metals like gold or silver. If you want to get bitcoins then either you buy them or you can mine them. Here we are going to see what is bitcoin mining and Can you mine them?
Since, there is no central government regulating it, then how do we know that the transactions are accurate?
Mining is the process of adding transaction records to Bitcoin’s public ledger(block chain) of past transactions. Sounds complicated right? For eg. if I have bitcoins and i am sending that to you, then this whole transaction will be verified by those who have heavy computers. These people are called miners. It is the job of these miners to actually verify the transaction and write them into general ledgers. As a reward these miners are given bitcoins. It is because of this mining process that new bitcoins come into the market.
What is a block chain ?
A block chain keeps record of the transactions happening.The ledger of past transactions is called the block chain as it is a chain of blocks. The block chain serves to confirm transactions to the rest of the network as having taken place. Bitcoin nodes use the block chain to distinguish legitimate Bitcoin transactions from attempts to re-spend coins that have already been spent elsewhere.
Can You Mine Bitcoin in Nepal?
Anyone can “participate” in the mining activity. But in Nepal Nepal Police says this on there facebook page.
But if you wish to earn it you just need to download some software and run it. Your computer will then start taking transactions that it receives through the bitcoin network, and it will bundle them into blocks, and start mining the block.
Your chance of mining a block is somewhat proportional to the amount of computing power you throw at it, because mining is a guessing game, and faster computers guess more quickly. It is also related to how fast your internet connection is, because once you have created a valid block, you want to make sure that everyone else incorporates it before someone else with a faster internet connection mines his own block and distributes his block more quickly.
But there are many transaction of bitcoin in Nepal.