About Bitcoin
Bitcoin made history these past few months. It broke its historical record, flirted with a 10x ROI in one year, its realized price also reached ATH, and it became the best performing asset of the decade. Now let’s talk about the brief discussion on Bitcoin!
Bitcoin is a Cryptocurrency; it is a form of virtual and electronic money. It is also a decentralized network of digital currency. First and foremost, the virtual currency is money! Bitcoin is a type of virtual currency with meaningful value in the real world, and as such, it can be traded for dollars, yen, or any other global currencies. Bitcoin is typically denoted on currency exchanges as "BTC". One of the differences between a virtual currency, such as Bitcoin, and a physical currency, such as yen or dollars, is that there is no physical manifestation of Bitcoin.
Small wonder that Bitcoin emerged in 2008 just after Occupy Wall Street accused big banks of misusing borrowers’ money, duping clients, rigging the system, and charging boggling fees. Bitcoin pioneers wanted to put the seller in charge, eliminate the middleman, cancel interest fees, and make transactions transparent, to hack corruption, create organic network value, and cut fees. They created a decentralized system, where you could control your money and know what was going on without depending on banks.
How does Bitcoin work?
Without getting into the technical details, Bitcoin works on a vast public ledger, also called a blockchain, where all confirmed transactions are included as so-called ‘blocks.’ As each block enters the system, it is broadcast to the peer-to-peer computer network of users for validation. In this way, all users are aware of each transaction, which prevents stealing and double-spending, where someone spends the same currency twice. The process also helps Blockchain Technology users trust the system.
Why use Bitcoin?
Bitcoin transactions are immutable once added to the Blockchain, so once a transaction has been verified and recorded, it cannot be reversed. As anyone with an internet connection can use Bitcoin, it is ideal for those who want fast settlements and low fees. People can safely send coins over a secured, distributed network directly to anyone else (peer to peer), without the need of traditional financial intermediaries.
Security for the Bitcoin
Security for our Bitcoin has always been extremely important to us. We’ve never kept our Bitcoin reserves with an exchange or with a payment service provider for this reason. There is nothing that can provide greater security in Bitcoin than holding private keys, whether an individual or business.
However, securely storing our Bitcoin and minimizing trust among our partners was challenging with the single signature hardware wallets we were using. This spring we learned more about Multisig and how it could potentially help with these issues. After exploring numerous options, we decided to enlist the help of Unchained Capital to implement our Multisig set up with collaborative custody.
Bitcoin for Small Businesses
Given the state of our economy and global monetary policy trends, we believe that it is now the fiduciary duty of company executives to allocate a portion of their treasuries to Bitcoin. Holding Bitcoin on our balance sheet for over six years has given us the perspective to see that Bitcoin truly is a store of value and protection from the devaluation of the dollar.
Due to their nimble nature, small businesses currently have a chance to get out in front of this trend and set themselves up to create enormous opportunities for their companies, employees and the customers they serve; potentially creating a shift in the competitive playing field between large corporations and the small businesses that have the foresight to recognize these facts.
Scams to watch out for
The four most typical Bitcoin scams are Ponzi schemes, mining scams, scam wallets, and fraudulent exchanges.
Ponzi Scams: Ponzi scams, or high-yield investment programs, hook you with higher interest than the prevailing market rate (e.g. 1-2% interest per day) while redirecting your money to the thief’s wallet. They also tend to duck and emerge under different names in order to protect themselves. Keep away from companies that give you Bitcoin addresses for incoming payments rather than the common payment processors such as BitPay or Coinbase.
Bitcoin Mining Scams: These companies will offer to mine outrageous amounts of Bitcoin for you. You’ll have to pay for them. That’s the last you’ll see of your money (with no Bitcoins to show for it, either).
Bitcoin Exchange Scams: Bitcoin Exchange Scams offer features that the typical Bitcoin wallets don’t offer, such as PayPal/Credit Card processing, or better exchange rates. Needless to say, these scams leave you in the hang while they siphon your dollars.
Bitcoin Wallet Scams: Bitcoin scam wallets are similar to online wallets – with a difference. They’ll ask you for your money. If robbers like the amount, that’s the last you’ll see of your deposit. The address, in other words, leads to them, rather than to you.
Of all of these, wallet scams are the most popular with scammers managing to pinch millions.
Is Bitcoin safe in India?
There is more terrible news for Bitcoin new organizations and customers from India.
Govt. of India has forewarned customers of Bitcoins and new organizations overseeing Bitcoins that their business is unlawful in India.
Besides, has crippled to drive fierce laws against them, which consolidates unfriendly to unlawful duty evasion laws and even dread mongering laws. This comes after Reserve Bank of India issued a notice a month prior, wherein they exhorted all Indians against using it and cleared up the real, cash related risks required in its use.
Conclusion
In this blog I covered entire topics of Bitcoin, Introduced with the intention of strengthening the digital economy, Cryptocurrency Development is being easy to trade and maintain has recently been in wide circulation. Bitcoins, which happens to be the first type of cryptocurrency, has no authority controlling or regulating it and thus, it stands as a system which is not so secure. The Blockchain Technology wherein public ledger of Bitcoin Transactions are maintained has led to many countries adopting it and utilizing it in digital transactions, despite the fact that many countries have banned the use of cryptocurrencies.
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