Bitcoin is a currency which you can not see or touch that means it don’t exist physically unlike any other centralized currency around the world. Bitcoin is just stored electronically that too in a encrypted form. Don’t assume it as regular digital payments or e-wallets it is quite different. In digital money you just use centralized government authorized money that is digitally stored in your wallet. But bitcoin is not centralized by any government around the world it is a cryptocurrency. Bitcoin is not actually a coin it is just a virtual money.
Use of bitcoin totally depends on mutual understanding. A group of people around use bitcoin to use some kind of services thus encouraging it. You can use it at your own wish & risk as it is not centralized currency. Bitcoin don’t have any limitation on it unlike regular currency where they have transaction limit at a point set up by a transaction authority in between which is usually a bank. Regular money transaction record are maintained by bank which is easily accessible by the government to keep track of all transactions. As bitcoin is a cryptocurrency all the transaction details are available with sender and receiver only there is no transaction authority in between. So it becomes very difficult for government to track transaction of cryptocurrency.
No kind of tax is applied on possessing or transaction of bitcoin as no record is maintained. So this is the real reason behind the popularity of bitcoin & other cryptocurrency. Price of bitcoin fluctuate a lot because there is no regulatory board to regulate this unlike any centralized currency where fluctuation is much less. So possessing a bitcoin is a risk taking due to its value fluctuation & uncertain future as it is not centralized.
A total of 21 million bitcoin can be only generated. Out of them 16.5 million bitcoins are already generated that means only 5.5 million bitcoins are left to be generated. Generation rate of bitcoins is halved every 4 years. Suppose that in 2008 50 bitcoins can be generated in 10 minutes so in 2012 25 bitcoins can be generated/10 min & in 2016 only 12.5 bitcoins can be generated/10 min. All these generated bitcoins are distributed among miners according to their contribution.
You can get bitcoins by mining it or by buying existing bitcoins from other users in exchange with real money. As we know nowadays bitcoin cost almost 9708 $ (US) & 627000 ₹ (INDIA) so you will have to pay around this much to get a single bitcoin. As it is very expensive so most of the people like to mine it. Mining is explained further in this post in detail. In short mining means generating bitcoins. Mining bitcoin takes lot of time even on specialized hardware. You can also earn bitcoins by the concept of cryptojacking if you own a website. Cryptojacking is also explained in detail further in this post.
At first if you are mining you will start mining from satoshi a much smaller unit of bitcoin 1 satoshi = 0.00000001 bitcoin. Satoshi is like paise to ₹ or cents to $ but it is much weaker than a bitcoin. You can even do transaction with satoshi so you don’t have to wait to get a whole bitcoin to do transactions. Satoshi is named after the creator of bitcoins.
It’s simple if you want to come out from the cycle of bitcoin then you can easily sell your bitcoins to other person who needs them in exchange of real centralized currency. So you will get equivalent money to bitcoin that you can use anywhere.
Bitcoins are used in many places such as shops, e-commerce site & many types of services. It can be used anywhere it depends on the receiver whether he accepts bitcoins or not.
Bitcoins are widely used on dark web for all kind of illegal services & stuffs. As we know bitcoin is a cryptocurrency so its almost impossible to track the transaction of bitcoins by the government. All the transaction done through bitcoins maintain no record except between whom transaction is done as all things are done in a complete encrypted way. Bitcoin transaction are done in a peers to peers manner. On the same concept most of the torrent site also run.
