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Bitcoin Pdf -What is Bitcoin,Litecoin & Other Cryptocurrencies -bitcoin pdf book

Bitcoin Pdf -What is Bitcoin,Litecoin & Other Cryptocurrencies -bitcoin pdf book – bitcoin is a Virtual Currency . Now A Days bitcoin is A Trending Term all over World . Those who are preparing for Various Competitive Exams like -UPSC,MBA,SSC,NDA,IBPS PO,IBPS Clerk,RBI And Other Competitive Exams. They Must Know About Bitcoin and other virtual Currencies .’Bitcoin Pdf -What is Bitcoin,Litecoin & Other Cryptocurrencies’

Questions from these topics can come in Exam. So guys in this Article We will provide Full Details about Bitcoin and Other Cryptocurrencies  in Full Details.

  • What Is Bitcoin ?
  • How Does Bitcoin Work ?
  • Why Do We Need Bitcoins ? 
  • Bitcoins values and Regulations 
  • What Are The Advantages Of Bitcoins ?
  • What Are The Disadvantages of Bitcoins?
  • Are Bitcoins Limited In Numbers?
  • How To Get Bitcoins ?
  • Arguments Against Bitcoins ?
  • How is New bitcoins Generated ? 
  • Who Can you Send bitcoins to ?
  • How Does The Bitcoin payment System Works ?

Bitcoin Pdf -What is Bitcoin,Litecoin & Other Cryptocurrencies

 

 

What Is Bitcoin?Bitcoin Pdf -What is Bitcoin,Litecoin & Other Cryptocurrencies

  • Bitcoin is a type of digital currency that enables instant payments to anyone.
  • Bitcoin was introduced in 2009.
  • Bitcoin is based on an open source protocol and is not issued by any central authority.
  • Bitcoin is a type of virtual currency, created in 2009 by an unknown person named Satoshi Nakamoto.
  • There are no Middle Man or Bank or regulatory Agency in this whole process .
  • All Transactions are made without any Regulatory Agency or bank .

Bitcoin is a peer-to-peer currency. Peer-to-peer means that no central authority issues new money or tracks transactions. These tasks are managed collectively by the network.

Bitcoin was the First virtual Currency to exist in world . After that many new currencies were introduced in financial market .All digital currencies created since then are called Altcoins, or alternative coins.

Litecoin, Peercoin, Feathercoin, Ethereum and hundreds of other coins are all Altcoins because they are not Bitcoin.

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What Are The Different Characteristics of Bitcoin ?

  • With the Help of Bitcoin You can buy Any thing like We buy with conventional Money .
  • It is Virtual Currency .
  • Bitcoin is not Regulated by Any Bank or Agencies .
  • Bitcoin is a Decentralized Currency .
  • A Large Bank can not control people money.
  • Only 21 Millions Bitcoin can be created .
  • These coins can be divided into smaller parts.
  • The smallest divisible amount is one hundred millionth of a bitcoin and is called a ‘Satoshi’.

How Does Bitcoin Work ?Bitcoin Pdf -What is Bitcoin,Litecoin & Other Cryptocurrencies

  • Bitcoins are generated all over the Internet by anybody running a free application called a Bitcoin miner.
  • Mining requires a certain amount of work for each block of coins.
  • This amount is automatically adjusted by the network such that Bitcoins are always created at a predictable and limited rate.
  • Bitcoins are traded from one personal ‘wallet’ to another. A wallet is a small personal database that you store on your computer drive (i.e cold storage), on your smartphone, on your tablet, or somewhere in the cloud (hot storage).
  • Your Bitcoins are stored in your digital wallet which might look familiar if you use online banking.
  • When you transfer Bitcoins, an electronic signature is added.
  • After a few minutes, the transaction is verified by a miner and permanently and anonymously stored in the network.
  • you can use Bitcoin for Purchasing good and Services online any time .
  • You can send bitcoins to any one . From your wallet to some one others wallet.
  • You can store bitcoins offline also in your wallet.

Bitcoins values and Regulations 

  • Bitcoins will stop being created when the total number reaches 21 million coins
  • As of 2017 More than Half of Bitcoins are Created Till Now.
  • Full 21 millions Bitcoins will be created by 2040.
  • Bitcoin currency is completely unregulated and completely decentralized.
  • There is no national bank or national mint, and there is no depositor insurance coverage.
  • The currency itself is self-contained and uncollaterated, meaning that there is no precious metal behind the bitcoins; the value of each bitcoin resides within each bitcoin itself.
  • There are no middle man,banks and Agencies to regulate this currency .
  • Bitcoin Pdf -What is Bitcoin,Litecoin & Other Cryptocurrencies

What Are The Advantages Of Bitcoins ?

Bitcoin has numerous benefits and advantages over using localized currency; we will discuss some of the biggest advantages.

Advantages of BitcoinDetails
User Anonymity
  • Like other Transactions in Financial system you can easily tracked by government or any regulatory agencies how much money you transfer from your account or how much you receive .
  • Bitcoins transactions are anonymous and private .
  • In Bitcoin you can only track address of sender and receiver but can not identify that person.
No third party Interruptions
  • There is no third party interruption .
  • In bitcoin system there are no middle man,Banks and regulatory Agencies .
  • This is a peer to peer currency system .
Purchases Are not taxed
  • one of the major advantages of Bitcoin is that sales taxes are not added onto any purchases.
  • you send money direct to seller account .
  • Thats means you will get products and services at low rates .
Very low transaction Fee
  • Standard wire transfers and foreign purchases typically involve fees and exchange costs.
  • Since Bitcoin transactions have no intermediary institutions or government involvement, the costs of transacting are kept very low.
  • This can be a major advantage for travelers,Buyers and Sellers of products and Services to other countries .
Mobile Payments
  • You can Easily buy and sell ,transfer money from one account to another account with the help of mobile .you just need internet.
  • you can Easily make payments without revealing your identity.
No Paper Work
  • In Bitcoins transactions there is no need of paper work .
  • Means Environment protection
Appreciating values
  • Day By Day bitcoins value is appreciating .
  • In 2017 we have sen highest growth in bitcoin value .
  • check google news for bitcoin value
Bitcoins Completely bypass Banks 
  • bitcoins are not regulated by any bank or financial institutions .
  • That means complete bypass of banking system and banks .
Bitcoin transactions are irreversible
  • Bitcoin transactions are secure, irreversible, and do not contain customers’ sensitive or personal information
  • Once a payment is made in bitcoins that is the final payment .
Fast payment 
  • No Need to explain you know very well readers . 
  • Make fast payment from any place ,any time from any where .
You can create your Own Money 
  • Like Every country you can also create your own currency .
  • what you need is just a computer network or computer system.
People can’t steal your payment information from merchants
  • One of the greatest advantage of bitcoin is no one can steal your identity and personal information in bitcoin system .
  • Like other payment system you need to provide your credit card ,debit card or any personal information before making any buying or selling or transfer .
  • Very Good for Every one .
  • no one will be able to steal your personal information if you use bitcoin or any other virtual currency.

What Are The Disadvantages of Bitcoins?Bitcoin Pdf -What is Bitcoin,Litecoin & Other Cryptocurrencies

In this world if any thing has positive points than it also has negative points too. In Bitcoin case also there are some disadvantages also . Here we are sharing some of the disadvantages of bitcoin in table given below .”Bitcoin Pdf -What is Bitcoin,Litecoin & Other Cryptocurrencies”

Disadvantages of bitcoinDetails
Degree of Acceptance 
  • Many people are still unaware of Bitcoin.
  • Every day, more businesses accept bitcoins because they want the advantages of doing so, but the list remains small and still needs to grow in order to benefit from network effects.
  • In India it is very difficult to use bitcoins for Trading .
  • people do not accept bitcoin easily .
Volatility
  • Bitcoin prices are very volatile and increases/decreases at a very high pace.
  • Speculators wish to take advantage of it but genuine investors thinks of it as too risky and therefore all the investors does not invest in Bitcoins.
  • you can Easily check price of bitcoin . It change every day .
  • Too Much volatility is not good for bitcoin market .
Government Interference
  • In Most of the country bitcoin is not a legal currency or banned by that particular country .
  • which forces bitcoin wallets and companies to shut down.
  • The bitcoins in these wallets are freezed and access to them becomes difficult.
Money laundering And Black market
  • you know readers black market and black money .
  • No Identity means easy to use black money in money laundering .
Ongoing Development 
  • Bitcoin is still in beta phase .
  • New tools, features, and services are being developed to make Bitcoin more secure and accessible to the masses.
  • Some of these are still not ready for everyone.
  • Many people or investors do not want to invest in bitcoin due to its development phase .
  • many investors or traders think it is too risky to trade in bitcoin .
No refunds 
  • Once payment transfer no refund in bitcoin.
  • It is biggest advantage .
  • For Merchants it is a biggest advantage but for buyer it is a biggest disadvantages .
Potential to Be Replaced by Superior Cryptocurrency
  • Any higher potential cryptocurrency can replace bitcoin .
Banned By Many Countries 
  • In many Countries Bitcoin is Banned or illegal .

Are Bitcoins Limited In Numbers?Bitcoin Pdf -What is Bitcoin,Litecoin & Other Cryptocurrencies

  • There Are total number of 21 Millions Bitcoins .
  • The Bitcoins number will not be exceeds more than 21 millions .

How To Get Bitcoins ?Who create bitcoins and How you can get bitcoins .

People Ask Many Questions regarding Regarding Bitcoin.How do you earn bitcoins?How do you mine Bitcoins?
How do you get bitcoins for free?How do you buy Bitcoins?Bitcoin Pdf -What is Bitcoin,Litecoin & Other Cryptocurrencies

There Are Three Easy Steps to get Bitcoin and use them .

Step 1-

  • Download Any Bitcoin Wallet .
  • There Are Various Bitcoin Wallets Across Various Platforms.
  • Bitcoin Wallet is  app or Program Which Allowed you receive and Send Bitcoins .
  • This Wallet Keep Record of all transactions and Your Transactions History .

Step 2- 

  • Now Add Bitcoin in Your Wallet from different Bitcoin platforms .
  • you can buy Bitcoin with the help of Credit Card and Bitcoin Exchange .

Step 3

Use Bitcoin to send and receive Bitcoin .

  1. Copy the receiver’s public Bitcoin address (or scan QR code)
  2. Open your wallet and navigate to its “Send” feature, paste the receiver’s address into the appropriate field Specify the amount you want to send (for help converting fiat currency into bitcoin visit our Bitcoin Tools page.)
  3. Confirm that the address and amount are both correct
  4. Send

What are the Different CryptoCurrencies – Virtual Currencies and Crypto Currencies .

  1. Litecoin
  2. Ethereum
  3. Zcash
  4. Dash
  5. Ripple
  6. Monero

CryptoCurrencyDetails
Litecoin
  • Often referred to as the little brother of bitcoin, litecoin is a peer-to-peer cryptocurrency that has gained fairly widespread adoption since its inception in 2011.
  • A form of digital money that utilizes a blockchain to easily maintain a public ledger of all transactions
  • litecoin is used to transfer funds directly between individuals or businesses without the need for an intermediary such as a bank or payment processing service.
Ethereum
  • Ethereum is an open software platform based on blockchain technology that enables developers to build and deploy decentralized applications.
  • Ethereum was proposed in late 2013 by Vitalik Buterin, a cryptocurrency researcher and programmer.
zcash
  • Zcash is a cryptocurrency aimed at using cryptography to provide enhanced privacy for its users compared to other cryptocurrencies such as Bitcoin.
  • The Zerocoin protocol was improved and transformed into the Zerocash system, which was then developed into the Zcash cryptocurrency in 2016.
Dash
  • Dash (formerly known as Darkcoin and XCoin) is an open source peer-to-peer cryptocurrency.
  • On top of Bitcoin’s feature set, it currently offers instant transactions (InstantSend),private transactions (PrivateSend)and operates a self-governing and self-funding model that enables the Dash network to pay individuals and businesses to perform work that adds value to the network.
  • Dash’s decentralized governance and budgeting system makes it a decentralized autonomous organization (DAO).
  • Dash was originally released as XCoin (XCO) on January 18, 2014
Ripple
  • Will Explain
Monero
  • Will Explain

India and Bitcoin – What is the stand of Indian Government on Bitcoin ?

  • Concerned over the adverse impact of virtual currencies such as bitcoin on the consumer, the government on April 12, 2017 has set up a committee to look into ways of regulating the fast-growing segment to curb money laundering.
  • Bitcoins have been banned in several countries on grounds that these currencies could be used for money laundering or financing terrorism.
  • The panel has been asked to suggest measures for dealing with virtual currencies including issues relating to consumer protection and money laundering.
  • Since December 2013, the RBI had also cautioned users, holders and traders of virtual currencies, about the potential financial, operational, legal, customer protection and security related risks that they are exposing themselves to.
  • The committee has been tasked to submit its report within three months.

Bitcoin regulation In India ?Bitcoin Pdf -What is Bitcoin,Litecoin & Other Cryptocurrencies

  • The central bank had clearly stated that “creation, trading or usage of VCs including bitcoins, as a medium for payment are not authorised by any central bank or monetary authority.
  • No regulatory approvals, registration or authorisation is stated to have been obtained by the entities concerned for carrying on such activities.”
  • As such, any user, holder, investor, trader, etc. dealing with Virtual Currencies will be doing so at their own risk,” the Reserve Bank clarified.

Finance minister Arun Jaitley said last week that India does not recognise cryptocurrency as legal tender ‘as of now‘.“Recommendations are being worked at. The government’s position is clear, we don’t recognise this as legal currency as of now,” Jaitley said when asked whether the government has taken any decision on cryptocurrency.

Securities Exchange Board of India (Sebi) on 20 December said that if bitcoin is considered as a commodity derivative then Sebi might regulate it. In countries such as the US, the Sebi-equivalent regulatory body is looking into cryptocurrencies. Experts say, considering cryptocurrencies are looked at as a commodity, Sebi should look at regulating them.

Though there are still no clear regulations or proper jurisdiction, the income-tax department is clear that tax has to be paid on all cryptocurrency transactions. Though there is no mention of cryptocurrencies in the Act, income tax will still have to be paid on any gains accruing from cryptocurrency transactions.Bitcoin Pdf -What is Bitcoin,Litecoin & Other Cryptocurrencies

 

 

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