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What is BITCOIN? (Bitcoin Explained) | Is Bitcoin illegal? How is Bitcoin stored? How does it work? - YouTube
Channel: Mint Tree
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What is Bitcoin? How is Bitcoin聽
different from regular money?聽聽
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How does Bitcoin work? Is it聽
illegal? Well, if you are curious,聽聽
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then make sure you watch this video till the聽
end! So, without any further ado, let's begin!
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First, let's understand what Bitcoin聽
is, anyway! In simple words, Bitcoin聽聽
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is a digital form of currency. You can send聽
this currency to other people anonymously,聽聽
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via the internet. It is a kind of cryptocurrency.
Now, you may ask - what is the difference聽聽
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between me sending money via e-banking聽
to somebody else, and me sending Bitcoin?
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The difference is that anything you do聽
with your money in the case of e-banking聽聽
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has to go through the banks, the聽
brokers, or the credit card companies.聽聽
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And, as you know, they all charge their fees聽
and have all sorts of conditions and penalties,聽聽
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usually written in micro-printing on a form聽
no one takes the time to read or understand.聽
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With Bitcoin, no one is in control聽
but you, unless you decide otherwise.
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So in short, with Bitcoin, only you are聽
the controller of your own Bitcoins.聽聽
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Nobody else can control it,聽
unless you decide otherwise.
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Additionally, traditional currency is a聽
centralized system, while bitcoin is not.聽聽
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The government strictly regulates the transactions聽
for traditional currency, but not for Bitcoin.聽聽
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There are no central authorities to regulate聽
rules and regulations on a Bitcoin transaction.聽
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Also, unless you actually link your name with聽
your Bitcoin address (which you can create),聽聽
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your transactions would be rendered聽
anonymous. This is like a double-edge sword,聽聽
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because on the one hand, no one can trace聽
you, but this also promotes criminal activity.
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Bitcoin was invented by an unknown person聽
or team going by the name of Satoshi聽聽
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Nakamoto. It was released in January of聽
2009. Satoshi set it up in a way that聽聽
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Bitcoin could be treated in some ways聽
like gold and in some ways like cash.
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Like gold, there is a limited supply of Bitcoin.聽
We know that there will always be 21 million聽聽
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Bitcoins; neither more, nor less. This is so that聽
the value of Bitcoin does not decrease or increase聽聽
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on the basis of supply, and so that it is聽
valuable. In other words, this is so that聽聽
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Bitcoin does not become inflationary.
1 Bitcoin is equal to 26,000 dollars,聽聽
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or this many rupees currently. That is聽
definitely a lot. Hence, we can divide聽聽
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it in into smaller units, like milliBits聽
and 'Satoshis', named after the inventor.聽
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A milliBit is a thousandth of the value聽
of a Bitcoin, while a Satoshi is a hundred聽聽
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millionth of the value of a Bitcoin. In other聽
words, if you can buy 1 apple with 1 Satoshi,聽聽
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you can buy 100,000 apples with 1 milliBit,聽
and 100,000,000 apples with 1 Bitcoin.聽
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The value of cryptocurrency can be quite unstable,聽聽
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as it purely depends on the聽
demand for it in the market.
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So now, let me tell you how Bitcoin is earned. You聽
have to mine it, just like mining gold, except for聽聽
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the fact that instead of digging into the Earth,聽
you have to solve complex mathematical equations聽聽
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to earn it. Nowadays however, one can buy Bitcoin聽
for regular currency, and then sell it to gain the聽聽
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profits. I have linked a guide and a website聽
for cryptocurrency trading in the description.
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So now, let's come over to perhaps聽
the most important part of the video.聽聽
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Is Bitcoin illegal (specifically in聽
India)? The thing is, that Bitcoin is not聽聽
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authorized in India as a medium of payment,聽
which means that the government will not solve聽聽
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Bitcoin related disputes. However, no聽
one can say that Bitcoin is illegal.聽聽
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You can trade Bitcoin in India, but disputes聽
will not be solved. So please remember that.
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Now, bitcoin is stored in two kinds of places聽
- hot wallets, and cold wallets. Hot wallets聽聽
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can be considered as cash registers. The money聽
is easy to retrieve, but is also very insecure.聽聽
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This can be used to store small amounts of聽
money which are to be retrieved quickly.聽聽
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A cold wallet can be considered a vault at a bank.聽
The money is very much secure, but it is not easy聽聽
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to retrieve. Additionally, hackers can enter聽
into hot wallets, as they are connected to the聽聽
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internet, but since cold wallets are not connected聽
to the internet, it is safe from hackers.
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Finally, here is a summary of everything that聽
we covered in this video - the explanation聽聽
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of Bitcoin, its advantages and differences聽
over and from regular money, how it works,聽聽
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and some extra information聽
which you can pause to read!聽聽
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I hope you liked the video! If you did,聽
then please don't forget to subscribe,聽聽
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and hit the notification bell, so that you聽
never miss a future video! Thanks for watching!
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