What is Bitcoin? | Shall I invest? | CA Rachana Ranade - YouTube

Wondering why I'm shopping so much?

hey folks CA Rachana Ranade here and i welcome  you all to another interesting video on  

cryptocurrencies i'm sure many of you might have  seen this chart on how bitcoin has performed  

in the past few months just after looking at  this amazing moment there are so many people  

who believe that a mera bhi 25 din mein paisa  double hoga don't go behind this first learn  

once you are clear with the concepts then only  decide whether you're going to invest or not 

a very very very important disclaimer you can  see so many comments which try to impersonate  

me try to impersonate my channel and they will  ask you to follow them for some advice some  

numbers will also be given in these comments  and they will ask you to follow them on some  

telegram channel or Instagram channel or on any  other platform please be 100% sure that I don't  

give advice on any sort of cryptocurrencies  on any sort of stocks also for that matter  

i don't have an advisory please ensure that  don't you don't fall for all these fraudsters  

so let's understand what is the meaning of  cryptocurrency in the most simplified manner  

so cryptocurrency is divided into two parts one is  cryptography and one is currency first let's try  

to understand what is cryptography cryptography is  associated with the process of converting ordinary  

plain text into unintelligible text and vice versa  unintelligible means which can't be understood  

so it is the process of converting plain text  into text which can't be easily understood okay  

it is a method of storing and transmitting  data in a particular form so that only those  

for whom it is intended can read and process it  okay see the moment when you read this that it  

is it is done in a particular way so that only  that person to whom it is intended can read and  

understand it remember the movie Razzi in which  Alia Bhatt used to make certain noises like this  

okay from Pakistan and then in India there  is a person who is listening to this voice  

and then he understands oh  she's communicating this to me  

okay now anyone else on earth if he would have  heard that noise he would not have understood that  

but the sender knows what he means to say and  the receiver also knows what he or she needs to  

understand from it that is actually cryptography  okay now let's understand the combined term what  

is cryptocurrency cryptocurrency in simple  words is nothing but digital form of cash  

okay now let's take this example here we have A  let us say any person A and here we have A is in  

India and there is one more person B who is from  USA now if A wants to send dollars to B in USA  

can that person directly send dollars no  he or she will have to first go to a bank  

okay then bank is a third party who is involved  who will actually convert the rupees into dollars  

and then verify who is the sender okay who is the  receiver okay we'll match certain things we'll  

charge some money and then transfer the funds  to B okay so this transaction was possible only  

with the help of an intermediary which was  the bank here now let's try to understand if  

there was something like a digital form  of currency which knows no barriers okay  

something like that a currency it's nothing but  a digital form of cash right so what could have  

happened that Mr. A could have directly sent  funds to B without any third party and that  

is an example of cryptocurrency so what are the  advantages no intermediary required number one  

number two no geographical barrier number three  because there is no intermediary as such charges  

are also very less who is going to charge what  that we are going to cover in the subsequent  

part of the video but charges are going to be very  less and number four it's very fast on an average  

of course different cryptocurrencies will have  different timings but it ranges as low as four  

seconds to as as high for popular coins like 10  minutes okay these are the advantages what are  

the disadvantages then number one disadvantage is  that if if a wrong transfer is made okay then this  

person A cannot ask for the money back why I'll  tell you because let us say the account to whom  

the money was to be transferred was account  number 645 and by mistake the person said 654  

now he does not know who is 654 that person  does not know who is 654 no one knows who is  

654 so once money is gone it can't you can't  get it back if it is a wrong transfer this  

could have happened if bank was there in between  because bank knows who is 654 right that is a  

disadvantage number one and number two because the  senders and the receivers identity is not unveiled  

unfortunately it is used for a lot of illegal  activities through internet which is many times  

a part of internet which is known as dark web  but if you want to know more about this what  

technology is used behind all these things we are  going to cover that in the next part of the video. 

Well now let's understand whether cryptocurrency  is really legal or illegal there are two different  

things one cryptocurrency being legal and one  cryptocurrency being allowed as a legal tender  

in India let's tackle both the problems number one  is it legal answer is yes why on 6th April 2018  

RBI imposed a banking ban on Indian banks to have  a relationship with crypto companies but the same  

banking ban was lifted in 2018 by a supreme  court decision and because of which the Indian  

banks were allowed to have business relationships  and banking services with an exchange so what's  

the conclusion trading in cryptocurrencies as  on date is absolutely legal then what is the  

problem problem is that cryptocurrency is still  an illegal tender of money means what tomorrow  

if I want to go to a shop and buy a refrigerator  I go to the shop I tell the shopkeeper okay give  

me this refrigerator and I'll say that okay  I'll give you bit some xyz amount of bitcoins  

in return or xyz or some other cryptocurrency  in return is that allowed no it's not a legal  

tender I will have to pay in INR I'll have to pay  Indian rupees but then you will say but illegal  

no wait you can compare it with something  like this even if I go to the same shop  

I tell that okay pack that fridge for me  and I say I don't have rupees right now  

do one thing I'll give you 10 reliance industry  stocks in return is that allowed no because  

even stocks are not a legal tender I hope  you have understood the difference between  

cryptocurrency being legal and cryptocurrency  not being allowed as a legal tender in India  

now let's try and understand what is a blockchain  in simple words blockchain is nothing but  

comprised of two words and one is block and  another one is chain right now what's a block  

block is nothing but a database which stores a lot  of information what kind of information now let's  

take the original example that A was sending some  cryptocurrency to B okay now what will that block  

store block will store information like who is the  sender who is the receiver when was the money sent  

and so much more information will be stored in  that block right now one more transaction takes  

place let's say X sends another cryptocurrency  to Y now again that information will be stored  

in this block that who sent to whom at what player  whatever then M sends to N, A sends to X whatever  

so much information goes on filling in this block  okay now this block is full another block comes  

into picture okay but when this block starts it  will point out to the last transaction actually  

there are concepts like hash rate or hashing  we are not going to go into details of that  

let's try and understand the essence of what is  a blockchain right so the second block basically  

will just point out to the last transaction there  that we are carrying forward we are continuing  

basically from here right again this block will  start filling up with a lot of information correct  

once this block is filled let's say now the third  block starts but third block will also again point  

out to the last transaction of the second block  now all these blocks will be linked will be will  

be uh you know tied together with the help of a  chain and that is why this is called as a block  

chain now the big question if i were to delete  the data from one of the blocks is that possible  

no why because a third block was pointing out  to the end of the second block if that second  

block goes away it will be clearly understood  that something is missing so this cannot happen  

and that is why it is said  that blockchain is immutable.

now let's try and understand what is bitcoin well  bitcoin is nothing but a type of cryptocurrency  

bitcoin was founded in 2008 and it was launched  in 2009 by Mr Satoshi Nakamoto like I am sure no  

one knows who Binod is similarly no one knows who  Mr Satoshi Nakamoto is well what is the advantage  

I'll tell you I can just compare it something  like this that we have promoters for a company  

similarly the promoter of this bitcoin is like  Mr Satoshi Nakamoto now I can imagine that if  

something happens to the promoter of the company  then what will happen to the share prices of that  

company they want to go down drastically similarly  if something happens to Mr Satoshi then what  

but we don't know whether he's alive or not  also so that danger is anyways away right today  

bitcoin is one of the most popular coins among the  cryptocurrency spaces all over the world wondering  

how a bitcoin looks like that's how it looks  like okay i'll just show it to you one minute.

Oh well it can't be held physically in  your hand why it's a digital currency.

Well I hope you have understood what is bitcoin  very nicely now one or two more fun facts about  

bitcoin what do you think how is the supply of  Indian rupee is it limited or unlimited correct  

answer is it's unlimited whenever government  wants it can print more and more Indian rupees  

what about bitcoins is the supply limited  or unlimited the supply is limited there are  

exactly 21 million bitcoin all over the world  okay but out of that in circulation there are  

18.6 million approximately bitcoins which are in  circulation right now now let us move on with how  

a bitcoin transaction actually takes place right  so let us say our old example where A transfers  

bitcoins to B that's where a new transaction  will be entered now what happens this transaction  

will have to be verified by someone like you  remember the bank example if A sends money to B  

then there'll be a bank in between that bank will  verify this transaction but in bitcoins in crypto  

do we have any intermediary no no intermediaries  there then who will verify this transaction  

now you can imagine there are thousands of people  all over the world who are there who are wanting  

to verify this transaction these people are called  as miners okay now what happens is that whenever  

A person sends bitcoin to B no one will say  that in plain English that will be written  

in some cryptic language okay now you can  imagine this is like some mathematical problem  

which someone can see something like that okay now  these miners who are all over the world thousands  

of people who are all over the world they will  try to solve this math problem okay when this now  

big question how will they solve this using pen  and paper no using a normal laptop no all these  

are very like very high very powerful computers  that they'll require super computers very high  

computing power computers will be required  to actually solve these mathematical problems  

now once they solve this problem what will happen  is they will have to come get something in return  

as a reward that is where we say that they  are mining the Bitcoin okay so in simple  

words someone is verifying the transaction or  free of cost okay some reward will have to be  

given to that person at that reward is in the  nature of giving him more bitcoins but these  

bitcoins are mined no one will  transfer bitcoin to them as such right.

Now the big question should one invest or not  wait first you have to understand how volatile  

bitcoin has been in the past and also in  the present just to give you a few stats  

in December 2017 it had touched the then high  around 19,000 for one Bitcoin then it went down  

and down and down entered into a bear market  and it touched a low of almost 4000 dollars per  

bitcoin in March 2020 and since then like stocks  have rallied like anything even bitcoin rallied  

a long way to believe it or not roughly 42,000  per bitcoin currently as I am shooting the video  

the bitcoin is trading around 36,000 for one  bitcoin so I hope by now you might have understood  

that it is a very volatile cryptocurrency now  the big question that are you are you spelling it  

properly are you saying it properly 36,000 for one  Bitcoin how on earth will I be able to invest even  

for one Bitcoin it is possible wait you you need  not buy one Bitcoin can you buy it in fractions  

yes so for example can you buy 0.1 share of  reliance industries no you can't but can you buy  

0.1 Bitcoin answer is yes so buying in fractions  is allowed okay wait but then the big question is  

that whether I should buy uh Bitcoin or Ethereum  or any other cryptocurrency for that matter out of  

all this which should I choose I think that like  I say in stock market don't go for small caps  

go for large caps which are comparatively known  which have a proven track record similarly if  

I'm talking about cryptocurrencies bitcoin is a  cryptocurrency which has the largest market cap  

and alone bitcoin has more than 65 percent  of the total market capitalization of all  

cryptocurrencies put together but then if you  ask me my personal opinion i would want to invest  

a small amount of money which I always call as  a party fund uh that will depend on everyone's  

risk appetite so for me it can be 5000 rupees  for you it can be 10,000 for someone else it  

could be 500 rupees also so that depends on how  much risk you are ready to take that can be a  

small amount with which you may start your  journey in investing in cryptocurrencies

I would like to thank Coin dcx for helping  me to make this video about cryptocurrencies  

if you are in India and if you want to invest  in cryptocurrencies then you can surely check  

out their app which is coin dcx go by coin  dcx which is India's largest and safest  

cryptocurrency exchange well if you want to still  learn more about cryptocurrencies they have a free  

learning platform which is dcx learn if you are  a beginner in cryptocurrencies and if you want to  

try then you can surely check out their app which  is coin dcx go app which makes investing easy  

quick and seamless using Indian rupees to download  the coin dcx go app follow the link in the pinned  

comment and if you're a pro then you can surely  check out coin dcx which is helpful for investing  

in more complicated products like margin,  trading, futures, contracts, lending staking etc

Well few key features of coin dcx  app are instant order settlement,  

high liquidity, low risk why  because you can start investing with  

as low as 10 rupees and you can start  depositing with as low as 100 rupees

It's KYC is fast and safe because it  is AI enabled it has multiple layers  

of security to ensure fund safety and  it is also backed by Bitgo custodian

now the grand finale question where do you store  these cryptocurrencies possibility number one  

you can store it with the exchange wherein you  can also earn some interest on that possibility  

number two you can store them in hardware wallets  they look something like this like a pen drive  

but this is password protected there's an amazing  fun fact that there is a US programmer who has  

actually forgotten his password to his hardware  wallet and he has only two attempts left to access  

his 300 million dollar bitcoin fortune I hope you  have understood and enjoyed this small session on  

cryptocurrencies if you have liked it don't forget  to share it with your friends if you want to learn  

more from me do let me know in the comment  section till then take care Jai Hind and bye  

bye