Cryptocurrency Bitcoin has crossed $1.10 lakh for the first time. If converted into rupees, the price of one Bitcoin is Rs 95.50 lakh. When it was created in 2009 by a person named Satoshi Nakamoto, its price was $0.0041.
What is Bitcoin?
Bitcoin is called the “gold” of the digital world. It is a digital currency that operates without the control of any bank or government. That is, it is decentralized, no single authority has control over it.
Bitcoin is not a physical coin or note, but a digital code that lives in your digital wallet. Just like you send a message on WhatsApp, you can send Bitcoin anywhere in the world via the Internet. Its number is also limited. How does Bitcoin work?
It works on blockchain technology. Imagine a ledger that records all Bitcoin transactions from around the world. This ledger is called the blockchain, and it exists on thousands of computers simultaneously.
A blockchain is like a digital copy that records information like transactions. Everyone can see it, but no one can change or delete it. It is shared across multiple computers, so it is secure and reliable.
When you send someone Bitcoin, the transaction is recorded in the blockchain. The work of verifying and securing it is done by “miners,” who use their computer power to solve mathematical problems. In return, they receive new Bitcoins.
This system is special because no one institution has complete control over it. The bank keeps your money in the bank, and if the bank makes a mistake or goes bankrupt, your money could be at risk.
But in Bitcoin, the blockchain keeps every transaction transparent and secure, and it is nearly impossible to hack because it is distributed across computers around the world.
