In recent days, there is a piece of sensational news about cryptocurrency.
"Tesla has suspended vehicle purchases using bitcoin, and we are concerned about rapidly increasing use of fossil fuels for bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel."
~ Elon Musk
This is the statement by Elon Musk – CEO, Product Architect of tesla. Previously, Elon musk played a crucial role in developing bitcoin. As Tesla bought $1.5 billion worth of bitcoin which resulted in a 15% rise in bitcoin value
Can cryptocurrency be used in daily life?
The answer to this question differs from country to country. However, the basic understanding of this question will be that since any governing body does not regulate cryptocurrency, They can only allow it or ban it. But cannot control it.
In countries such as the USA, South Korea, Japan, France, Switzerland, Germany, European Union (EU), India, etc., it is not illegal to keep them or use them. However, they can only be used if the seller is ready to accept them. Meanwhile, countries such as China, Vietnam, Qatar, Ecuador, etc., have ban cryptocurrencies in their countries.
So how does it work, and is it safe to do transactions using it?
There are more than 4200 cryptocurrencies that are currently active in the market, but only a few are popular and known to people. All of these cryptocurrencies work on blockchain technology. One of the most popular cryptocurrencies is Bitcoin. Satoshi Nakamoto first developed it. According to researchers, he holds around 1.1 million bitcoins.
So when a transaction is made using bitcoin, that transaction is recorded in a public ledger which is highly secure and works on a public blockchain. Then there is a set of people called miners who validate your transaction, and once it's done, it is recorded in the global ledger.
Can these miners access your cryptocurrency?
The answer is no. Miner only validates your transaction for which they receive a reward that is a small percent of cryptocurrency.
Know a few stats to let you know the value of a few of the top cryptocurrencies
1 Bitcoin equals 27,81,790.76 Indian Rupees
1 Ethereum equals 2,53,165.72 Indian Rupees
1 Litecoin equals 22,813.88 Indian Rupees
1 Binance coin equals 38,126.67 Indian Rupees
1 Cardano coin equals 149.73 Indian Rupees
1 Dogecoin equals 25 Indian Rupees
*note these values constantly fluctuate.
How is this cryptocurrency-Bitcoin generated?
The only way to generate cryptocurrency is through mining.
Mining means adding a file to the public network of the bitcoin blockchain. This is done by solving complex mathematical problems, which require heavy computational resources and electric power consumption. So if you want to be a miner, you need to have high-end GPU resources.
How is the Price of cryptocurrency decided?
The Price of the virtual currency depends on the supply and demand policy which means the Price of the cryptocurrency varies on balancing the supply and demand of the currency. If the trading with virtual currency is more, then the Price of the virtual currency increases.
If any of the trading companies stop accepting the cryptocurrency, then it results in a price drop. For instance, if trading with the cryptocurrency will decrease, then the currency with you will be of no use. In this panic situation, customers intend to sell their cryptocurrency, resulting in a price drop.
Platforms in India to buy bitcoins:
You can get your cryptocurrency from platforms such as WazirX, Zebay, Coinbase, etc. You only need to create an account on their platform and get the KYC completed, and you are ready to buy your first cryptocurrency.
Comments