Cryptocurrencies are non-physical virtual currencies or currencies based on cryptography. Cryptocurrency is made up of very complex programs. These can also be referred to as software codes. These are called ‘cryptocurrencies’ because they use encryption technology. The cryptocurrency was invented in 2008 by Satoshi Nakamoto
The major cryptocurrencies are Bitcoin, Ethereum, Ripple, Lightcoin and Stellar. The most valuable and popular of these is Bitcoin. This is also the first cryptocurrency. Bitcoin is currently valued at $ 10,000 against the dollar. Bitcoin is traded through Bitcoin exchanges
Cryptocoin is not a new concept. But the full credit for turning the octopus into a grass-eating cow goes to some individual or group known by the nickname Satoshi Nakamoto.Satashi introduced the Bitcoin protocol in 2008 and introduced it in 2009. Satoshi Nakamoto suddenly disappeared from the world of bitcoin in 2011 without even giving a hint of who he was, building the Bitcoin protocol and related software and providing all the infrastructure needed for further development.Media outlets such as The New Yorker and Fast Company have been scrutinizing the identity of Satoshi, but no definite answer has been found. Shinichi Mochisuki, Japanese mathematician, computer engineer and economistTed Nelson, the father of ‘hypertext’, believes that Satoshi has no choice but to become. He gives no clear evidence for this. Ted Nelson argues that the character traits of Mochisuki, who withdrew after publicizing his findings and giving the public the necessary guidance, are in perfect agreement with Satoshi.The concept of Bitcoin is not just for a mathematician or a computer engineer. These conclusions are underlined by the fact that it can only be achieved by someone with extraordinary insights into economic, social and humanitarian issues. Moreover, good knowledge of the English language is required to discuss this concept with the outside world in a way that does not interfere with its meaning. Mochisuki is one of the few Japanese who can speak English fluently. But Mochisuki has denied this, so Bitcoin’s father still hides behind the nickname Satoshi.
In all existing monetary systems, the value of a currency is controlled by a centralized institution. For example, the value and distribution of our currency are controlled by the Reserve Bank. In this type of centralized control system, consumers are always at risk of being exploited. Moreover, black money poses a major challenge to the monetary system.This is where Bitcoin comes into play. No individual can exploit the Bitcoin system in a harmful way. The production of counterfeit coins is also impossible. Unlike other currencies, there are accurate estimates of the maximum number of bitcoins that can be marketed. 210 lakh bitcoins will be marketed only in predetermined proportions. This completely eliminates inflation.
Bitcoin and the Bitcoin network are protected in two ways. The first is through highly secure cryptographic technology. According to this, the full right to spend and keep is reserved for the Bitcoin owner only.The second is the Bitcoin exchange account known as the blockchain. That is, a blockchain is a register that encodes information on all completed Bitcoin transactions.Here too, one can look at the shortcomings of the common banking system and understand the relevance of the blockchain. Withdraw more than the amount in the account in the normal banking system. Banks use centralized books to avoid errors such as paying checks for unaccounted money. However, we do not accept checks from unbelievers. Because of the fear of bouncing. Moreover, the misconduct of the bank officials may result in loss of money. All of this is excluded in the Bitcoin currency system.The Bitcoin Blockchain is a public account book that encodes all Bitcoin transactions and systematically connects them to each other under the clock. The process of making bitcoin blocks and updating the ledger is known as bitcoin mining. Bitcoins are rewarded by the Bitcoin community.The reward for this is the number of new coins entering the Bitcoin network (down from the previously mentioned 210 million coins). Once the index reaches 210 lakhs, new bitcoins cannot be mined. According to estimates, we will have to wait until 2140 to reach this magic number. Once the 210 lakh coins have reached the market, the new coins will be exchanged for the renewal of the books of account and the exchangers will have to pay a fixed percentage of the amount for the renewal of the books of accounts. As the competition intensifies, so does the exchange rate.
Apart from India, countries like China, Nepal, Russia, Vietnam and Bolivia have also banned virtual currencies, including Bitcoin.
In April 2018, the Reserve Bank will impose restrictions on cryptocurrencies. The ban was aimed at curbing irregularities that could affect economic growth.