Bitcoin, A Brief Overview - Aliyan Shaikh
By: Aliyan Shaikh
Tags: Cryptocurrency Investment, Investment, Bitcoin, Investing, Cryptocurrency

Bitcoin — A Brief Overview

Paper Money is Going Away

Bitcoin has been over 10 years old, but interest in Bitcoin rose significantly in 2017. People got to know how they can take advantage of that and make high profits.

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Every investor wants to invest in Bitcoin. He loves cryptocurrency because he wants to manage his finances without paying unnecessary fees and bank interference. Bitcoin has become an ideal way to make profits for new investors. People are very curious to get more information on ways to make insane profits with bitcoin investment. Bitcoin made it easy for investors to get rich quickly. Another reason people love bitcoin is that transactions are made with no middle man means no banks.

So, there are some questions about bitcoin which I will try to answer based on my web searching on Bitcoin.

What is Bitcoin? Who created Bitcoin? How Bitcoins are generated? Is Bitcoin Legal or illegal? Why some countries have banned Bitcoin Transactions? What do billionaires like Bill Gates, Warren Buffet, Ray Dalio, and Elon Musk say about it?

Here we go,

What is Bitcoin?

Bitcoin is a digital currency, also called cryptocurrency. You can’t hold it in your hands like a coin or a note as it does not have any physical appearance. It is completely virtual.

Who created Bitcoin?

According to Wikipedia, Bitcoin was created in 2008 by an unknown person or group of people using the name “Satoshi Nakamoto” and started on 9th January 2009.

The identity of the person or group of people who invented this technology is still a mystery. No one knows who created this digital currency.

How Bitcoins are generated?

Bitcoins are not issued by any central bank. Bitcoins are generated by a computer process called “mining.” The people who generate bitcoins are called “miners.” Bitcoin miners process transactions and secure the network using specialized hardware, and collect new bitcoins in exchange.

Is Bitcoin Legal or illegal?

The legality of Bitcoin depends upon the location and activity of the user.

Those countries who have said ‘yes’ to Bitcoins are The United States of America (USA), Australia, Brazil, India, Japan, Argentina, Greenland, South Africa, Nigeria, Germany, France, Italy, United Kingdom (UK), Netherlands, and some other European countries. It is fully legal to use Bitcoins. There are not any restrictions on Bitcoin transactions in these countries.

However, in some countries like China, Saudi Arabia, Russia, Canada, Indonesia, there are some legal restrictions on the usage of Bitcoin. But in very few countries like Pakistan, Nepal, Algeria, Bolivia, Ecuador, and Egypt, Bitcoin transactions are illegal. Their Governments have banned Bitcoin’s exchange.

Why some countries have banned Bitcoin Transactions?

Bitcoins can be used anonymously to conduct transactions between any account holder anytime and anywhere across the globe, which makes it attractive to terror organizations and criminals. They may use Bitcoins in buying or selling illegal goods like weapons, or drugs.

Bitcoin transactions cannot be tracked; therefore, some holders get worried about associating with money that may have been used in illegal activity such as money laundering.

What do Billionaires say about Bitcoin?

Here are the opinions of the world’s richest people on technology,

Warren Buffet: “Bitcoin has no value at all. It is a delusion, basically.”

Ray Dalio: “Bitcoin is a speculative bubble.”

Bill Gates: “It is a pure greater fool theory type investment.”

Elon Musk: “It is primarily a means of an illegal transaction.”

Conclusion:

Bitcoin was introduced on 9th January by an unknown person or group of people using the name “Satoshi Nakamoto.” It is a virtual currency. It has no physical appearance. Bitcoins are generated by a computer process called “mining.” Bitcoin is legal in some regions of the world while some countries have banned Bitcoin transactions.