What is Bitcoin
Are you confused about what is bitcoin? Bitcoin's History? How its Price being calculated? Where do you store it? What is Bitcoin wallet?
Then this article will help you to know all useful things about bitcoin.
Bitcoin and Its History
So Bitcoin is the first cryptocurrency invented by Satoshi Nakamoto in 2009. We also know bitcoin as a digital currency, virtual currency because bitcoin only has a value which is available on the internet no one either see it or touch it. Because bitcoin is the first cryptocurrency that is why we also termed bitcoin as mother currency of all other cryptocurrencies. And every coin available in the market depends on bitcoin.The first transaction made with bitcoin is to buy a pizza and that time price of 1 bitcoin was only 9 Rs and today its price is almost 6 Lakhs per coin.
The reason behind the development of bitcoin:-
The main reason behind the development of bitcoin was not to create a currency that people buy, sell, hold and earn profits. Its main purpose was to develop a peer to peer transaction system in which we can access any service from all over the world using a single currency whose value is almost same everywhere and there is also no involvement of any third party authority like government, peoples etc.So Bitcoin is just a currency in digital form that was developed to fulfill our requirements.
Why bitcoin value fluctuate too much:-
As we discussed above that the price of 1 bitcoin was 9 Rs. in 2009 and today it's almost 6 lakh per coin. So the question is why bitcoin prices fluctuate too much. So the only reason for its fluctuation is the demand of bitcoin. And the basic rule of demand and supply applies here too. So the more demand bitcoin gets the more its price will increase and vice-versa.The other reason for bitcoin's fluctuation depends on its news.If any news is in the favor of bitcoin then its price will increase and vice-versa.
Note:- The total supply of any cryptocurrency is decided at the time of its development and the same happens with bitcoin. Total supply of bitcoin is 21 million and the current market supply of bitcoin is almost 17 million.
If you are familiar with bitcoin or searched for it. Then you might hear about term bitcoin wallet. So bitcoin wallet is simply a normal wallet used for storing bitcoin and this wallet is available in physical and virtual both form. Trezor is a physical bitcoin wallet where you can store your bitcoin offline so you can keep your coin safe from hackers. And virtual wallets are those which are available only on the internet like blockchain bitcoin wallet and many more. There are many ways to create these virtual wallets and that we will cover in upcoming articles.
We hope this article helped you learn about Bitcoin, Bitcoin's history, Its Price fluctuation and about its wallets.
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