Table of Contents
What Is Cryptocurrency?
These are no real currencies but only generated by computer codes. These are not backed by any government agencies. Usually, the miners generate cryptocurrencies like Bitcoin on cryptocurrency network.
Today, Bitcoin is not the only cryptocurrency available; rather there are many. All of them are quite similar except the differences for hashing and encryption. Some of the popular cryptocurrencies are-
- Bitcoin
- Smartcoin
- Ether
- Ripple among others
- Bitcoin Cash
What Is Bitcoin (BTC)?
Basically, Bitcoin is a digital currency that was created in 2009 by a strange personality, Satoshi Nakamoto. Bitcoins are mainly cryptocurrencies like the money that you have on your Freecharge account or Ola Money or Paytm wallet which are used to make a purchase online.
But, there is a major difference between Bitcoins and these currencies. While money is such accounts are backed and recognized by any government body, the cryptocurrencies, like Bitcoin is decentralized. You can use free Bitcoins to buy or sell and items online from the dealers who accept such coins.
Remember, Bitcoins don’t have any physical establishment. These are not notes or coins; rather Bitcoins exist only online. Before knowing more about free Bitcoin mining, you must have some idea about cryptocurrencies.
Usage of Bitcoin (BTC)
The invention of Bitcoin has been quite beneficial for the businessmen. The large business organizations work on national as well as international markets. Transferring money is essential for every business in the local currency of the country. While you send it to a bank, you have to pay transaction costs.
Again, people often don’t want to reveal their name while they are sending money to any foreign NGOs. With Bitcoin, you can easily send money at the respective currencies of the foreign countries. If you haven’t used it before, here you will get a detailed account of Bitcoin.
Difference between Bitcoin and Real Money
The main difference is that real money is touchable while Bitcoin is only virtual. But, you need a detailed account of this matter.
The real currencies, whether it is dollar, rupees or pounds, all are regulated by the governing bodies of respective countries.
According to the needs of the country, the government manages the money supply to keep prices stable. Real money can be printed or withdrew whenever needed, and the governments can also control the monetary policies of the countries by implying new interest rates.
On the other hand, Bitcoins are not regulated by any central bank of any countries. They are decentralized and can only be increased through a unique process, known as ‘mining.’
If you want to make a transaction with Bitcoin, you will be regarded by the computer as a Bitcoin miner, and you have to solve a critical mathematical problem. Once you solve it, you will receive a fraction of Bitcoin as a reward. As you get Bitcoin by solving a mathematical problem, it is known as a cryptocurrency.
The record of each transaction is kept through anonymized strings of the number. It is stored in a large public ledger, known as blockchain. It is useful to maintain the integrity of the currency. An essential advantage of using Bitcoin is that this payment method works 24*7 and you can send money anytime, from anywhere.
Number of Bitcoins in the World
Generating Bitcoins need to follow a strict mechanism. It is very easy to count the number of Bitcoins just by multiplying the number of the blocks and the coin value of the block. There is a thorough rule of measuring the coin value.
In every four years, the value gets halved once the block number reaches 210,000. For example, the first block is of 50 BTC, while the value of the 250,001st block will be 25 BTC.
Presently, there is more than 16.7 Million BTC of coins are in circulation around the world. The Bitcoin network is developed to supply around 21 Million BTC. Until the middle of 2020, the present supply growth will be continued, and that is around 12.5 Bitcoins per block.
Later, for next four years, the number of Bitcoins per block will be 6.25 Bitcoins until next halving. Till 2110-2140, this halving will be continued, and again 21 Million Bitcoins will be issued.
