What is bitcoin cryptocurrency? What is bitcoin price? How does the bitcoin work?

The topic is about bitcoin like what is bitcoin cryptocurrency , what is bitcoin price, and how does the bitcoin work etc? You can not touch bitcoin because it is a digital currency. Bitcoin was released in 2009 and it was released by either Satoshi Nakamoto or Satoshi Nakamoto group. But till now none have the proper details of Satoshi Nakamoto. Satoshi Nakamoto have two main reasons to release bitcoin cryptocurrency. 

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What is bitcoin cryptocurrency?

The first reason is that remove the mediator like bank on the time of transaction. When we send money online to other one then bank works as a mediator in this transaction. Bank checks some basic details (like have you enough money to complete the transaction?) and then completes the transaction after approving. On the other hand bitcoin is the world’s first digital currency that works without a mediator. Bitcoin have no owner,no authority and can not be controlled by any government agencies.

Bitcoin works with the help of peer to peer network. It means sender sends bitcoin to receiver without a mediator in a transaction. There is none without sender and receiver in a transaction. And the second reason is to reduce the transaction charges. When we pay any shops via credit card then bank cuts 1-2% transaction charges. And if we send money in foreign country then a high transaction fee will be debited from your account by the bank. But transaction fees are very low in bitcoin cryptocurrency. Now discuss

How does the bitcoin work?

To invest in bitcoin cryptocurrency you have to open at first bitcoin wallet. Wazirx, Zebpay, Coinswitch Kuber etc. are the bitcoin wallet providers or bitcoin exchanges in india. You can open bitcoin wallet with them. Each bitcoin wallet have their own address such as every bank account have their account number. So if your friends wants to send you bitcoins then he have to send the bitcoins in your bitcoin wallet number. And each wallet have their private key and public key. When you do the transaction or send bitcoins to others then a digital signature will automatically generated. Nodes verify the senders with the help of digital signature. 

Nodes means the computer that connect with the bitcoin peer to peer network. For example, when you issue a check of 10000 rupees to anyone then bank at first verify your signature and bank account details(such as have your account really 10000 rupees?). Similiarly when you send bitcoin cryptocurrency nodes at first verify yourself and check your wallet details(such have your wallet the enough bitcoins?) and the private key with the help of your digital signature. 

Block chain technology is used in bitcoin cryptocurrency . Block chain technology means a public laser. As the way any businessman keeps his transaction in a khatabook. Similiarly all the transactions of bitcoins are kept in block chain. You can see the transaction from first to recent in the blocks. Businessman or his employees enter the new transaction in khatabook. Similiarly the work of entering new transactions of bitcoins is done by bitcoin miners. 

When we hear the word ‘mining’ we think at first the mining of diamond,gold or coal etc. Miners have to find out these after mining from mine. But bitcoin miners have not found out bitcoin cryptocurrency . They have to maintain the block chain or public lasers. In return of their service miners get rewards as a bitcoin and transaction fees. The bitcoins that miners get for the first time is the new bitcoins that is generated in system for first time. The new bitcoins is only come in system with the help of bitcoin miners. It is the one and only way to enter the bitcoin in system. For bitcoin mining miners need heavy computerised power,electricity and powerful hardwares. 

In that way we keep documents in file. Similiary butcoin transactions are kept in blocks. And when one file is fully filled by documents then we take a new file. For the bitcoins when one block is filled by transactions then miners add a new block in system. Till now the storage of bitcoin blocks is 1 MB, so the limited transaction can be stored. When one block is filled then transactions are stored in new block.

Every block has the reference number of the before block and the reference of new open block will be used in the next block. Thus a chain is created by blocks, so it is called block chain. You can see all the transactions till now in blocks. It means it is one type of a khatabook where every bitcoin transactions are stored. Like if you have two bitcoin cryptocurrency then from where you get the bitcoins and  From where your sender got the coins? So all the transactions of the coins from when the coins were generated in systems can be got in block chain.

Now miners have to seal the blocks after fully filling the transaction details. So that anyone can not manipulate the transactions or change the details. To seal the block miners have to solve a difficult puzzle with a specific mining software. After solving the puzzle the sealed block is published in the bitcoin system where nodes verify the block and then add the block in block chain. 

The miner who solves the puzzle first gets 12.5 bitcoins now. And the transaction fees of the block is also got the miner. The rewards that the miner get as a bitcoin is become half in about every four year. In 2009 when bitcoin stared then bitcoin miners got 50 bitcoins for mining. On november, 2012 miners got reward of 25 bitcoins. And in 2017 miners got 12.5 bitcoin for block mining.

Every miners compete with other miners because if he can not solve the puzzle first then his all work will be sinked. The mining process are made hard and it is the part of the design of bitcoins.  When any miner solves the puzzle the block is published in system. For this miners do mining in group so that the puzzle can be solved quickly and the probability of winning will increase. And the rewards that they get for mining is shared with every miners. 

When you do the bitcoin transaction the transaction will go in system and the nodes are verify your transaction with your digital signature. And then miners enter the data in block and sealed it solving difficult puzzles. After that the block is published in system where nodes will check the block and then add the block in chain. And every user can see the transactions from the block chain. Blockchain ,cryptography, digital signature play a great role to secure the transactions of bitcoin cryptocurrency.

Bitcoin price is depended on supply and demand. It means if the demand of bitcoin is more than supply then the bitcoin price is increased and when the demand of bitcoin cryptocurrency is less than supply then bitcoin price is decreased. From some years the bitcoin price is increased heavily for the huge demand(1600% return in 2017). The bitcoin is designed in this way that the total number of bitcoins will be 21 million or 2 crore 10 lakh. And the final bitcoin cryptocurrency will be mined in 2140 AC. And then new bitcoins do not come in system.

You can buy or sell the bitcoins with the app of zebpay, unocoin, coinsecure etc. Now One bitcoin price is equal to 7,73,986.76 Indian Rupee. But it is not compulsory to buy a full bitcoin crypptocurrency. You can buy it in fraction or satoshi. One bitcoin price is equal to the price of 10 crore satoshi. Risks and rewards of bitcoins are covered here.

If you have any query related to bitcoin cryptocurrency please comment below so that the topic can be covered.

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