By HT School Web Desk, May 21, 2021 15:15
The concept of bitcoin, a form of digital currency, isn’t new to the world. This alternative currency has gone through many ups and downs since its inception in 2009, witnessing a severe crash in 2018 and a remarkable revival post COVID-19 lockdown in 2020. A few months back, bitcoin hit the headlines when Tesla, an American electric vehicle and clean energy company, invested $1.5 billion in it and signalled its plan to begin accepting this electronic currency as a form of payment. Though bitcoin been existing since 2009, it is still a concept, that very few have a clear understanding of. However, with the growing popularity of this electronic currency, it is necessary to be aware of the basics of bitcoin. Here is all your teenager needs to know about it.
What is bitcoin?
To put it simply, bitcoin is a virtual version of money which is not kept in a bank. It is stored in the form of a digital file in the online wallet apps of a computer or smartphone. Bitcoin can be used to buy products and services. One can send and receive it through digital wallets. By nature, this currency is decentralised with no central bank to regulate it.
In order to ensure the security of transactions, the digital wallets are backed by private and public keys. Users are able to carry on their negotiations through the public key and all of transaction records are stored and verified in a public ledger known as blockchain.
Is Bitcoin legal in India?
Technically, Bitcoins can be used in any country. However, it is not accepted everywhere and some countries have banned it. Currently in India, usage of Bitcoins for trade isn’t illegal. In the last week of March 2021, the Indian government made it mandatory for companies to disclose their digital currency investments.
How to get Bitcoins?
There are various ways to procure Bitcoins. The easiest way is to sell things and get paid in this digital currency. However, one can buy Bitcoins using real money through various apps. Known as Bitcoin exchange apps, these apps allow the trading of this currency through the phone. Bitcoins can also be created using specialised computers. This process is known as mining. However, it is a very high cost involving and complicated process.