What is Bitcoin (BTC)?
Bitcoin was the first cryptocurrency that succeeded in making secure transactions in 2008. Satoshi Nakamoto is the creator of bitcoin. Bitcoin works through a peer-to-peer network without requiring the operation of a central authority. Here, one can make direct online payments directly. So, the payment happens from one party to another without a financial institution.
One can download bitcoin software which is available online for free. To improve the speed and privacy of bitcoin transactions, bitcoin uses additional protocols. They are
- Omni Layer
- Lightning Network
- Liquid Network
Bitcoin Price in India Today 5th February 2023
Bitcoin Price in Other Currencies Today 5th February 2023
History of Bitcoin
The first blockchain-based cryptocurrency is bitcoin. In 2008, Satoshi Nakamoto invented bitcoin. But later in 2009, bitcoin was available as open-source software. The first transaction happens between Satoshi Nakamoto and an early adopter of bitcoin. In 2010, the real-world transaction using bitcoin happened.
Over time, retailers started to use more bitcoin in 2012 and 2013. But later on, federal authorities shut down the bitcoin website in October 2013. The authorities find the use of bitcoins for black market transactions.
Another Mt. Gox bitcoin exchange shut down in 2014. The bitcoin exchange was trading much bitcoins every day in May 2013. But with the accusations of fraud, this exchange got shut down in 2014. Today, one can trade bitcoin using decentralized cryptocurrency exchanges such as Coinbase, etc.
The Meteoric Rises and Falls of Bitcoin
At early trading, the price of bitcoin was around $13.50 per bitcoin. The bitcoin faced the first rally in April 2013, as it was over $220. But in the same month, it faces a big drop to $70.
Again in October and November of 2013, the bitcoin began to fluctuate. In early October, the bitcoin price was $100. At the end of October, it increased to $195. In November, the bitcoin price is $200. But it leads to a huge rise at the end of November, as the bitcoin price is $1,075.
After the operation of the Mt. Gox exchange, the price of bitcoin falls to $1,079 on December 4, 2013. There were rumors about Mt. Gox, as it employs poor security in bitcoin transactions. So the price faces one more fall in the same month of December taking the bitcoin price to $760. At that time, Mt. Gox was operating 70% of the overall bitcoin transactions.
After getting some stabilization in January 2014, the price of bitcoin was $920. With the close of Mt. Gox exchange in February, the bitcoin price falls to $850. Again, in the same month, it has seen one more drop in the price of $580. At the beginning of 2015, the bitcoin price was around $315.
How do you get Bitcoin?
Buy Bitcoin using cash
An individual can buy bitcoin using the following.
- Credit Card
- Debit Card
- Wire Transfer
The first step is to establish a wallet in bitcoin to get your wallet ID. A Bitcoin wallet is a place to store bitcoins.
A Bitcoin doesn’t have a central authority to control it. Hence, anyone can start bitcoin mining. Bitcoin miners use some software to solve mathematical problems to get bitcoins for free. Minors can get bitcoins when they solve the problems correctly.
Is Bitcoin Mining Legal?
The mining process looks illegal in most countries except the United States. Since international laws vary between countries, the US allows bitcoin mining. Still, laws related to bitcoin are evolving in certain countries. This is to regulate the use and distribution of bitcoins.
How can you use Bitcoin?
One can use bitcoin to purchase goods and services, which is legal. But, it doesn’t mean that you can purchase things on the dark web. Most people use bitcoin for drugs and gambling, which is illegal. Companies that accept bitcoin as a legitimate payment include Microsoft, Dell, and a few airline companies. The easiest way to change your bitcoin into cash is by using gift cards.
Is Bitcoin safe to use?
Many hackers are looking for ways to steal your bitcoins. So it is important to store your bitcoins in a safe place. There are bitcoin security companies available online. You can make use of their service to store your bitcoins.
Bitcoin Alternatives to Consider
Bitcoin is not the only cryptocurrency, as you have many other types with special features. Some of the best alternatives are
Ethereum uses its network for operation. Unlike bitcoin, application developers use ether as a currency on the network. One can use either for various things such as betting, ride-sharing, investments, etc.
It is similar to bitcoin, but one needs zero cost for transactions. One can establish wallets as in bitcoin, to store your Litecoin from hackers.
What to consider before buying bitcoin?
When you want to buy bitcoin, you need to consider the following things.
How much you want to invest?
The first thing is to ask yourself how much you want to invest in bitcoin. You must not be investing more than your limit. It will make you face difficult financial conditions in the future.
Your risk tolerance
The next factor to consider is risk tolerance. You need to correlate your risk tolerance with the amount that you are going to invest in bitcoin.
Storing your digital assets
To store your digital assets, you can use a digital currency wallet. Such a wallet can be a hardware or software to store your currency information safely. It is essential to maintain your wallets safe and private to avoid hacking.
Where to buy digital currencies?
The most common way to buy digital currencies is by using cryptocurrency exchange or trading platforms. Exchanges are best to buy bitcoins, as they provide them at the best rate. One can even use a bitcoin ATM to purchase bitcoins using cards.
These are the factors to consider while buying bitcoin. Additionally, one can consider other factors like
- The community behind the currency
- The technology value
- Tax implications
- The media surrounding your chosen digital currency
More Cryptocurrencies Price in INR and Other Currency
|Crypto Name||Crypto Name|
|Bitcoin (BTC)||Litecoin (LTC)|
|Ethereum (ETH)||Cardano (ADA)|
|Polkadot (DOT)||Ripple (XRP)|
|Bitcoin cash (BCH)||Binance Coin (BNB)|
|Ethereum Classic (ETC)||Zcash (ZEC)|
|Stellar (XLM)||Tether (USDT)|
|Bitcoin SV (BSV)||Chainlink (LINK)|
Bitcoin is gaining popularity due to its non-anonymous nature. One can use bitcoin every day for their legal purchases. Other than investment, one can use bitcoin for making payments. Thus, bitcoins have various features to consider for buying them.