Bitcoin Price History And How does Bitcoin work and why is it so popular?

Greetings, friends! Can you imagine what the value was zero about 10 years ago? And today, its value has reached almost 150,000 rupees! I'm talking about Bitcoin, which recently touched on its highest price ever Therefore, it has become a hot topic in the market and the media again. So I thought it was a good time to make an educational video And explain to you what Bitcoin really is and what is its history? Exactly 12 years ago, on October 31, 2008, a person named Satoshi Nakamoto published a paper on the Internet. Satoshi's main motive was clear from the first line of the dissertation A version of electronic cash that allows you to send payments directly. From one party to another without going through a financial institution Cryptocurrencies are digital assets that are not controlled or regulated by central banks or financial institutions. For example, the US dollar is managed by the central bank of the United States. 

Indian Rupee is managed by RBI However, there is no central bank or major financial institution that manages Bitcoin / cryptocurrencies At that time, cryptocurrencies were just an idea in the person's mind. But now that crypto exchange has a valuable Rakı and Croix transaction Just as stocks are traded on the regular stock market To understand the context of Satoshi's dissertation and cryptocurrencies, we need to understand some concepts of our economic history. Our financial system is based on trust Banknotes and coins are of value to our society as they are guaranteed by the government and central banks. Look at the note in your wallet. For example, a banknote of 200 million rupees.

It says, "I promise to pay the owner 200 million rupees." This is the promise of the central bank governor, the Reserve Bank. Just below is his signature This memo is not worth it without this promise / guarantee Without this signature, this note will be reduced to plain paper In this context, there is a small but interesting story After World War II, the United States became the most powerful country in the world, and other countries needed to match their currency to the US dollar. And what was the US dollar matched / guaranteed? Gold reserves.

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The actual value is a gold or silver value. However, it is not realistic to carry gold or silver in your pocket. Banknotes are printed for convenience. However, the United States abolished this gold standard in 1971. Then central banks in other countries were able to print their notes as they wished. But what does cryptocurrency and Bitcoin have to do with this? It helps you guess how powerful the central bank of the country is as far as government and banks, especially monetary policy. The fact of the matter is that when you deposit your money in a bank, you in a sense give the bank permission to play with that money. Banks use these deposits to lend to businesses and individuals This is what Fetch returns, that is, the interest on the money you deposit Most recently, it has been found that these banks are using these savings and deposits in a very irresponsible way. These loans are often bad debt / NPA if the bank lends to a large businessman without proper checking. And who would be the victim in such a case? Depositors like us.

Three depository institutions have failed in the last 15 months-Yes Bank, PMC Bank, Laxmi Vilas Bank But even government decisions can endanger the common people Do you remember November 2016? Democratization! The government has decided to waste 500 and 1000 banknotes in a single strike 86% of Indian currency is no longer available Those who support Bitcoin and cryptocurrencies do not want governments or central banks. Exercise so much control over their money and currencies Did you understand Satoshi's original idea / vision? Satoshi imagined Bitcoin as an alternative financial system It is based on software technology and is outside the control of third parties You may be able to remember the collapse of the world economy in 2008 Mega investment bankers like Lehman Brothers were bankrupt Cryptocurrencies were born shortly after this scenario Bitcoin arrived first.

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And many other cryptocurrencies have surfaced-Ethereum, Litecoin, Ripple In fact, earlier this year, over 2000 cryptocurrencies were available on the internet. Let's move on to the main points here. How does encryption work? To tell the truth, understanding this requires advanced math and computer science knowledge that I don't have. But if you want to start investing or trading, basic knowledge is enough Let's take an example of Bitcoin Of all Bitcoin transactions, there is one digital public account-this is called the "ledger" A copy of this ledger is present on all systems that are part of the Bitcoin network What runs this system is called a "minor" The miner's job is to confirm the transaction For example, A needs to transfer two Bitcoins to B's account The miner needs to check if A actually has two bitcoins in his account Miners need to solve complex formulas to complete a transaction You may have returned to school to study variables

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Every Bitcoin transaction has its own variables The miner's job is to calculate it They are not sitting with a pen or paper to solve the equation All of these calculations are so complex that their combinations are so complex that they are automatically performed on your computer. As a result, these miners need computers that are extremely complex and have high processing power. Once the equation is solved, other computers in the network will see it and this transaction will be added to the chain. A block of transactions is created. Therefore, this technology is called "blockchain" And what do miners get in exchange for this? They get the most valuable ones-Bitcoin! This system is called "Proof of Work" Miners need to prove the computational work they do in order to be awarded Bitcoin in return Don't worry if all this explanation goes right above your head like a bouncer! Understanding the philosophy, vision, and future of crpto technology is far more important than understanding how crpto technology works.

Cryptocrrency Kya Hai Hindi Mein

Now there is the question of how to use cryptocurrencies and Bitcoin Understanding that is also very important. On the other hand, some people use Bitcoin as an investment. On the other hand, some people are using cryptocurrencies as an alternative currency Many want to replace it with currency and use Bitcoin instead of rupees and dollars However, the main use of cryptocurrencies today is like investment We invest money in cryptocurrencies in the hope of higher returns in the future and therefore get more money This will be a "store of value" just like gold.

Buy gold and store it in your bank locker like a guarantee, just as you wouldn't spend it in your daily transactions Gold prices will continue to rise gradually, so in order to make more profits in the future People do the same with Bitcoin, and this is why Bitcoin is also called "digital gold" But like any other investment, this is also risky. And those who criticize this as a form of investment Bitcoin is a digital currency. Has no inherent value in itself For example, you can physically touch the gold in your hand. If you buy a home as an investment, it will be physically available to you Bitcoin, on the other hand, is not physical. Everything is happening on the computer Still, it is a "niche product" that is not widely accepted by society. Cryptocurrencies are not yet a medium of exchange. This means you can't go to a nearby shop to buy bread or eggs with Bitcoin. However, this trend may change in the future. There are several restaurants and hotels in the Western world that have begun to accept Bitcoin as an alternative payment method. There are technical challenges here that make it difficult to use Bitcoin as a medium for everyday transactions. Bitcoin transactions on the blockchain take time to be confirmed.

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One block process takes about 10 minutes for the computer to calculate So you can see that it is not realistic to wait 10 minutes in your daily life for a transaction to complete. But at the same time, there are some current use cases for Bitcoin that work better than traditional methods. The best example of this is our foreign money transfer If you need to transfer money from one country to another, the bank will deduct a lump sum in the name of a foreign transfer fee. They charge a lot of fees and it takes a lot of time to transfer money from one country to another In this case, Bitcoin is more economical. Bitcoin does not charge a transfer fee and 10 minutes is a much shorter time compared to the 1-2 days it takes a bank The same applies to credit card fees Cryptocurrencies are more economical than credit card fees This is why banks, credit card companies and remittance companies are against cryptocurrencies, and even today. Cryptocurrencies can be rivals in their business model Things have changed in the last few months, especially with the Covid pandemic.

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While some industries and investment trusts are struggling The value of cryptocurrencies like Bitcoin and Ethereum is rising From March 1st to November 30th, the value of Bitcoin increased by more than 120%. In other words, the value has more than doubled. Paypal, the world's largest digital payments company, introduced cryptocurrency trading capabilities in November JP Morgan Bank was once the biggest enemy of Bitcoin. When Bitcoin was running bullish in 2017 So when prices rose exponentially, JP Morgan's CEO said it was a scam. And now, just a few months ago, JP Morgan opened a corporate account on well-known cryptocurrency exchanges like Coinbase and Gemini Trust. So you can see how the door that was previously closed for cryptocurrencies is now open Open minds have been observed regarding cryptocurrencies in the general public and the financial industry As for India, there is a change in attitude this year as well. 

Bitcoin Price History

In April 2018, RBI frozen the crypto industry from the banking system RBI instructed banks through circulation to stop trading crypto-related platforms and transactions Mainstream media claimed that the RBI banned cryptocurrencies, but that was technically inaccurate. Cryptocurrencies have never been banned directly in India. RBI simply blocked bank access to the crypto ecosystem As a result, the general public was unable to handle the INR, the Indian Rupee on the crypto platform. Banks treated crypto platforms very rigorously I couldn't pay the employee or the landlord because the platform account was frozen. So the question arises: why did RBI do this?

In reality, cryptocurrencies also have some downsides, primarily related to money laundering and security. On the dark web on the internet, people were beginning to accept Bitcoin payments to buy weapons and drugs. Law enforcement agencies were outside the traditional financial system, making transactions very difficult to track. Problems related to hacking have also surfaced Another reason is that anyone can come up with their own cryptocurrency. This is why many fake and fraudulent companies receive money from the general public. With the promise that when trading starts in that particular currency, the value of their money will be doubled / tripled. So they insisted that the money invested would be doubled / tripled A person named Amit Bhardwaj came up with a similar fraudulent crypto scheme named "Gain Bitcoin". There are 2,000 chlore fraud allegations against Bhardwaj Bhardwaj claimed that he had a "mining farm" in China. That is, where multiple computer servers were solving equations. He said that the Bitcoin obtained as a result of the mining work will be given to investors as a return. But all his promises were empty.

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He took money from many people and fled India He had such a claim. Finally in April 2018 he was arrested According to the latest update, he has been released on bail and the proceedings are pending in court. Therefore, for this reason, there is a negative twist about cryptocurrencies and Bitcoin here, and in response, the RBI has decided: Imposing a bank ban on cryptocurrencies A cryptocurrency exchange, a platform that allows you to invest in cryptocurrencies and convert rupees to Bitcoin, has been operating in India since 2013. The founders of some exchanges have decided to challenge the ban on banks in court. It was not only a matter of their livelihood, but also a matter of principle. They had the opportunity to explain how crypto technology and blockchain work for government and RBI. They were of the opinion that the negatives associated with cryptocurrencies are also valid for other asset classes. Money laundering of property can occur and fake notes can be printed. There may also be money laundering there There are many fraudulent plans that work for many other things.

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Bank and stock exchange software can also be hacked There is a possibility. Therefore, the problems that exist with Bitcoin also exist with others. In response, the reputed Indian platform included many safeguards. For example, the KYC (know customer) process is now mandatory at sign-up The case reached the Supreme Court. Due to a lot of negative news about the media's cryptocurrencies, some well-known senior lawyers refused to fight the proceedings. Many rumors have come up There was a postponement. During this time, some exchanges could not survive, and as a result, the exchanges had to be closed. Finally, three judges heard the case in January 2020. The court accepted the position of the exchange and found that the RBI ban was "disproportionate." The RBI was unable to prove in court that crypto investments and transactions had a negative impact on the financial system and banks. Indulging in any business / occupation or trade under Article 19 (1) (g) of the Constitution of India is a fundamental right of all citizens. The court said the banking ban imposed by the RBI hampered this fundamental right.

This is a big thing Because it ’s not normal to beat a RBI in court. Therefore, it was the historic day of March 4th for the Indian crypto industry. The court has explicitly declared that there are no legal bans on cryptocurrency transactions and investments. This business is legal and RBI needs to lift the bank ban Overall, this is good news for all of us. Feel free to invest in cryptocurrencies as needed There is this opportunity to diversify financial investment You can invest some money in cryptocurrencies as an experiment After the Supreme Court's ruling, several exchanges have grown exponentially, making this process very easy and straightforward in India. One of these is Coinswitch Kuber. This is an app that can handle over 100 cryptocurrencies. Over 70,000 users have signed up for Coinswitch Kuber within 6 months And those safety measures are also very strict Customers' Aadhar and PAN are verified and the minimum investment allowed is Rs 100-all free In addition, rupee withdrawals are immediate.

Bitcoin Value

There is a lock-in problem Cryptographic investment will be online food It displays the clean button text of Coinswitch Kuber. Next, there is a point of common sense rules. for example, Please do not trade with a loan from a bank. If you need to get a loan Don't do it to invest in cryptocurrencies or Bitcoin. Second, this is not for you This is a very risky investment, so invest only the amount you are comfortable losing Cryptocurrency prices fluctuate widely and fluctuate very much. So it's clear that it's both an opportunity and a risk. Your risk appetite and investment goals determine if you want to play short-term or long-term games Overall, cryptocurrencies and Bitcoin have the potential to play an important role in the future of finance. It is not yet known if cryptocurrencies can be a widely used medium of exchange Or will it continue to be a value investment store?