A cryptocurrency is a digital asset designed to work as a medium of exchange to secure financial transactions, control the creation of additional units and verify the transfer of assets.
While some countries have explicitly allowed their trade, others have restricted it.
Bitcoin wallet is a digital payment currency that uses cryptocurrency technology to create and manage transactions. It first released as open-source in 2009, since then many alternatives have been created.
The usage of bitcoin:
To understand bitcoin it is important to compare it with paper money.
Bitcoin is completely virtual and is an online version of cash that can be used to buy goods and services. These coins are available in bitcoin exchanges or you could also purchase them from other users. But not all or many markets accept bitcoin as a viable mode of payment. Every transaction is recorded in a blockchain which makes it possible to track each exchange.
As a virtual currency, bitcoin uses a decentralized system to carry out and store transactions. Decentralized in the sense that no particular body of authority prints or mints bitcoin rather it is mint by the crowd.
The advantages:
Bitcoin does not gain it’s a value from the government but from the demand of bitcoins and thus they are more resistant to inflation or corruption. Therefore, it is right to say that bitcoin gains its value from the people. The more we use, the more will be its demands and vice versa. However, people using bitcoin hope their identity isn’t revealed.
The final verdict:
There is a limit to the number of bitcoins that can be generated and the same has been put in the system to prevent any devaluing of the currency.
You can send bitcoins digitally to anyone who has a bitcoin address, anywhere on the globe. One person could have different addresses for different purposes- personal and/or business.