Bitcoin is a digital currency. Which is built and operated electronically. It is a currency produced by solving mathematical problems done by computers used in the world. We also call the process of its production 'mining'.
What is different from ordinary currency?
It is a currency that is not run by any country. And no country or person has any kind of control over it.
Who is the inventor?
It was introduced by a software developer called 'Setoshi Nakamoto'. Which is a payment system based on mathematical evidence. The main reason for introducing this was to bring such a currency into operation, over which no one has control. And, at least the transaction should be done by paying the fee.
Who will print and distribute it?
No one does. This currency is not physically printed and distributed by any type of bank financial institution or country. It is a currency produced by the digital process between us as a community of people. Anyone can be a part of the community. Bitcoin mining refers to the process of solving a mathematical problem.
Can it be produced in unlimited quantities?
No. Only 2,10,00,000 bitcoins can be produced worldwide. Out of which 1,40,00,000 have been done so far. And, the process of other mining is continuing. When one bitcoin is divided into 100 million parts, one part is called 'setosi'. It refers to the name of the inventor of Bitcoin.
What is it based on?
Commonly used currencies are based on gold and silver. This means that when we deposit any money in the bank, we can get gold and silver equivalent to it. However, Bitcoin is not based on gold and silver, it is based on a mathematical process.
People all over the world produce it using mathematical formulas with the help of software. Formulas that can be viewed by anyone, which we also call open source.
Its features are:
Decentralized Currency: The Bitcoin network is not operated by any country. That is, no country can close it.
Easy to maintain: No cumbersome bank and financial institution account opening process and complicated bank rules and fees. It can be set up in a few seconds.
Anonymous: No name or address is required to hold and use Bitcoin.
Transparent: Every activity on the Bitcoin network is included in a ledger. Which anyone can see. What we call blockchain.
Negligible fees: Banks and remittances from one country to another and from one place to another charge a large fee. However, in Bitcoin, its fees are negligible.
Fast: Sending money from Bitcoin anywhere is received within minutes.
Irrevocable: Bitcoins sent to the wrong address are not recoverable unless the recipient sends them back.
What can be done with Bitcoin?
From recharging your mobile phone to sending money, you can do all sorts of transactions with Bitcoin just like any other currency.
Where to get Bitcoin?
There are some online websites to buy bitcoins. From which we can buy bitcoins or we can take the same amount to the person who has bitcoins.
Is this illegal?
In the context of Nepal, there is no mention of this in the law. So this currency is still in confusion. However, it is being used after being recognized by many countries and major international banks. Bitcoin has recently been recognized in Russia as well.