Bitcoin- An Alternative Payment System

Are Bitcoin and cryptocurrencies the perfect hedge in the Covid-19 crisis?

As its value started to grow, so did its popularity. More and more people began to show interest in buying or selling it online with only one intention in mind: to be rich. So, what is Bitcoin? It is an electronic payment system that acts as a medium to exchange goods and services or money.  

The Beginning

It got created by an anonymous person or a group of people who go by the name of Satoshi Nakamoto and claimed to be of Japanese origin. In November 2008, Satoshi Nakamoto released a paper in a cryptography mailing list where they gave an insight into what it is and how it works. It formed to remove the centralized currency system. In simple words, to remove the hassles of dealing with the bank altogether in exchanging goods and services and would take place directly between the two involved parties without the third one. They gave it as a reward for solving mathematical problems, and this process is known as mining. They first formed in January 2009.

Gaining Bitcoins

There are different ways in which you can gain the same.

Mining was the initial way by which the coins you earn. Although mining has mathematical problems, it is not complicated. What makes it complex is guessing the correct 64 digit hexadecimal number known as a hash that comes closest to the target hash (which could be less or more than the target soup) among millions and millions of possibilities. It is the only way they got created. Previously, mining was possible with any computer at home or even with a laptop, but these days, it requires mining software and the hardware (ASICs) specifically for mining. There are mining cryptocurrency software available online and used accordingly. You can buy the mining hardware on the internet. The average rate of mining one coin is five years.

  • Buying Coins – The easiest way to get them is to buy them online. For this, the Bitcoin wallet needs download. It acts as a wallet (know more about cryptocurrency wallet development) , only virtual to store coins and for transactions, too. You can buy a single coin, as there is also an option to buy a currency in portions for lesser money. Like any other purchase online, you can make payments through debit cards, credit cards, or online banking transfers.
  • Bitcoin Faucets – Like a faucet drips water; it is a feature used in websites or applications that gives a portion of a coin in small drips as a reward for completing a small act like watching an ad or visiting a website. It works for patients who are patient enough to go through several ads or websites by investing time but are unwilling to pay.  
  • Games – There are many gambling games online where you can earn the coin.

The fact that it was created as a decentralized currency system attribute to its crucial element and provides a payment system that is highly secure, easier, and transparent. With how its value changed from the time it got created till now and the vision Satoshi Nakamoto had in mind while designing, it is crucial to understand how Bitcoins will affect the future currency systems.