What is BIT COIN?
It is a virtual/crypto/digital currency, launched in 2009 by
Satoshi Nakamoto. It is a form of digital currency, created and held
electronically with nobody’s control on it. Bitcoins are not printed like
actual dollar bills, pounds, instead they are produced by lots of people
running computers all over the world, using software which solves mathematical
problems.
It can be used to buy things electronically, just like we
can use conventional money. The biggest advantage of bitcoin over conventional
money is that it is decentralized, which means no single bank controls the
money, i.e. bitcoin. This means, bitcoin is not printed, it is mined using
computing power in a distributed network.
The bitcoin protocol-the rules that make bitcoin work-says
that only 21 million bitcoins can ever be created by miners, however, these
coins can be divided into smaller parts (the smallest divisible amount is one
hundred millionth of a bitcoin and is called Satoshi). Till now, 12 million
units of bitcoin have been created.
First conference on bitcoin was held in Bangalore in 2013
which was organised by CoinMonk. One unit of bitcoin on CoinMonk is
approximately $1200 or INR 63,000, making bitcoin the most expensive currency on
CoinMonk as on November 2013.
Bitcoin is a risky currency as it can hacked, and Elliptic
Vault of UK has become the first insurance company to insure bitcoins. Thailand
and Indonesia have banned the use of bitcoins in their respective countries.
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