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Bitcoin: The currency that is out of reach

Bitcoin: The currency that is out of reach

12 Jan, 2020

There are some people who believe in the idea that "I will not take a job or give a job." My friend Sam is one of them. He is working in solitude to do something as an entrepreneur.

Therefore, even before the start of trading with Bitcoin worldwide, he was very keen to do something with Bitcoin. But after studying a little bit about bitcoin, he was quite upset! There is no end to the debate, criticism and debate about Bitcoin! So, he began to move in step. At first he wanted to understand what Bitcoin really is?

2. What is Bitcoin:
Bitcoin was created in 20 years. Satoshi Nakamoto is the creator of Bitcoin. But Sam was surprised to find that her identity is still mysterious! He has not been found yet!

Of course, after seeing the price of bitcoin, the enthusiasm of the eyes increased! He looked at the net and found that a Bitcoin was worth $ 5.7. However, these prices fluctuate a lot. Then Sam wanted to know how Bitcoin is actually made.

He found that the unique feature of Bitcoin is that the coin is not printed on paper, nor is it coined with gold, silver or copper. In fact Bitcoin is a digital currency or cryptocurrency that can be traded online only. Bitcoin is even more unique.

No state is the controlling authority of Bitcoin, consequently there is no recognized body for controlling Bitcoin. That means when, how many bitcoins will be made, where are the existing bitcoins in the market or there is no one to look at the bitcoin fraud.

After getting an initial idea about Bitcoin, Sam seemed to know exactly how to exchange Bitcoin, before even starting to sell Bitcoin, it must be known!

2. Bitcoin exchange method:
Bitcoin is often called the world's first cryptocurrency. Like Bitcoin, cryptocurrency is exchanged through the "peer to peer" network of computers. The main purpose of this network is to share data. This data can be of any type. For example, movies, songs, documents etc.

Sam started to feel a bit hesitant then. Is it possible to duplicate digital data, then is it possible to fake Bitcoin? But Sam's anxiety did not last long. Even after Bitcoin is a digital currency, anyone can fake and create fake Bitcoin.

The main reason is that bitcoin, like a video or audio file, cannot be duplicated at all. Admittedly Bitcoin is an entry in a huge global database called Blockchain. Blockchain accounts for all Bitcoin exchanges. So far, the blockchain has accumulated 1.5 MB data.

But who accounts for this blockchain? Looked at the fact that since Bitcoin has no regulatory authority, there is no recognized authority to hold blockchain accounts. People from different corners of the world do the automation of a Bitcoin account (called a "wallet").

Sam decided he would also calculate the bitcoin exchange. He first bought a special troubleshooting computer. Then, he put a powerful solar panel on the roof of his house. Because, using these computers requires a lot of electricity. It is not possible for Sam to cover this cost with electricity bill. He can save a lot of money with his own solar panel.

This time Sam sat at the computer and started calculating. When Bitcoin was exchanged, the exchangers announced the exchange, and accountants like Sam updated the information on the blockchain.

As a result of many updating the same information, it is found that if someone tries to commit fraud, that attempt is caught. When Sam's first block was filled in to update the information, he started using the new block. Thus, blockchain of information was created by using blocks one by one.

Takki records three issues of Bitcoin exchange while updating the blockchain. Namely:

2. Sender's wallet number

2. The recipient's wallet number

2. How many bitcoins are being sent

But to many people, having account number information seemed risky to Sam. Anyone can send Bitcoin from one bitcoin wallet to another in their wallet.

One day he told Rajib brother about the risk of having tea at Dhanmondi. Rajib's brother told him, "Cryptography is used to avoid this risk and that's why Bitcoin is called a cryptocurrency."

Sam: "But brother, how does this cryptography work?"

Rajib Brother: "Two keys / keys are used in Bitcoin wallet. One is a private key and the other is a public key. This key is two unique and ensures the security of Bitcoin exchange. Suppose I send the data of Bitcoin, I will mark that data with a private key.

Next, the data is verified with my public key, if the private key and public key symbol match, then everyone will know that I actually sent the data. The key to these two keys is that they cannot be duplicated like a credit card number or signature. ”

Sam: "Wow! Let worry free! "

Rajib Brother: "Yes, stealing Bitcoin is almost impossible. This is one of the reasons behind the huge popularity of Bitcoin. ”

2. Ways to make Bitcoin:
Accountants like Sunny do the work of accounting for bitcoin's blockchain with a lot of time, money and labor. They all have a special purpose behind it. An accountant earns 12.5 Bitcoins to add a new blockchain to the blockchain.

Those who do this work are called "miner". This is because they sit on the computer and lift Bitcoin, just like gold is lifted from a gold mine. Bitcoin is created solely to reward miners.

2. Bitcoin rarity:
Sunny was happy to receive the first block of 32.5 bitcoins. But his happiness did not last long. Because in the beginning, one block was used to add 1 bitcoin to the blockchain. But with the blockchain added every 25,7 blocks, the number of awarded bitcoins comes down to half.

So, afterwards, 8 to 20 Bitcoins and now 12.5 Bitcoins are given as prizes. In the future, the number of awarded bitcoins will continue to decrease. Bitcoin's auction is done in such a way that the financing of Bitcoin will be precise and limited.

According to various calculations, the latest Bitcoin will be created in the 21st.

This limited and precise supply is what made Bitcoin so valuable. There is a lot of disagreement on how the price of bitcoin will be in the future, how long this high will remain.

In the midst of so much uncertainty, I still do not understand what to do! In the next two articles I will try to focus on what to do next and what the future of Bitcoin will look like.

But undoubtedly, Bitcoin has uncovered a new horizon in economics and technology.