What is a Bitcoin?
We all have used paper money such as Rupee, Dollar, Pound, etc. What if we were to say that there is a currency which you cannot touch, cannot see but can be electronically stored in phone, computer or other electronic storage devices.
Bitcoin is one such digital currency. It may sound like a coin but it is neither a coin nor a paper but is a digital currency stored in a digital wallet.
Value of Paper currency such as rupees is determined by Central Bank after analyzing multiple factors.
Bitcoin does not have any centralized controlling authority and its value is purely determined on the basis of demand and supply.
Bitcoins are traded from one person to another through internet without going through a bank. You can also buy and sell goods and services using bitcoin.
In India however there are not many people who accept bitcoin as currency. Most of the people in India buy bitcoins for speculative investment purposes.
Like normal currency is printed by central banks, bitcoins are mined and not printed. Bitcoins were started in 2009 and there will be in total only 21 million bitcoins which will be available by 2040. At present, we have around 12 million bitcoins in circulation.