what is cryptocurrency and bitcoin , How does it work? | Chabid.com

Ever since the bitcoin touched the highest price ever, everyone has been talking about cryptocurrency. 

Let us know what is crypto currency. What is Bitcoin? How does it work? Let us know why bitcoin or cryptocurrency was invented.

what is cryptocurrency and bitcoin , How does it work? | Chabid.com
what is cryptocurrency and bitcoin

Our transaction system

Before we talk about cryptocurrency or bitcoin and to understand it properly, we will first talk about our transaction system, and then we will better understand the cryptocurrency system.

If we talk about ancient times, people used to take things in exchange for things, that is, if someone had a lot of lentils, he would take rice from someone in exchange for lentils. In short, things were taken in exchange for things. But there were many flaws in this system.

As time went on people started to advance, then people thought of making something that could buy and sell things. Then gold, silver and copper coins began to be used as currency, then paper currency system was introduced. 

In 1983, David Chaum built the world's first digital transaction system. Guys let's talk now what is cryptocurrency and bitcoin and why it needs to be created.

Difference between cryptocurrency and common currency

Friends, if we talk about currency notes, then currency notes are not important in themselves. These notes are important as long as they have the support of the government. 

Notes are just a piece of paper. They are important as long as they are protected by a government agency. If we look at gold and silver in comparison to notes, then gold and silver are valuable in themselves. 

Similarly, cryptocurrency is valuable in itself in the virtual world. Maybe that's why cryptocurrency and bitcoin are also called virtual gold.

Why was cryptocurrency created?

Friends, by nature man is always struggling to create conveniences for himself. With the advent of currency notes, human life became easier. 

With the advent of credit cards and debit cards, human life became more enjoyable. Digital banking has done a great job of solving all the problems.

But then some people thought that a currency should be created which is not under the control of one person or one system but under the control of all. Not under the control of any one country or government, but all have the same currency at the international level.

A transaction system that is the fastest to send money around the world. Usually if we send our money from banks to foreign countries then it takes a lot of time and a lot of fee.

 But in cryptocurrency you can transact in just 10 minutes in any corner of the world. One of the main reasons for making it is that the money you have is safe and no one can use it without you.

When we deposit our money in the banks, the banks have the option to spend our money as they wish. But no one can spend your money in cryptocurrency. 

While there are advantages to cryptocurrency, there are also disadvantages to this currency which we will discuss later.

What is cryptocurrency.

In 1983, David Chaum created the world's first digital transaction system. Named "E Cash". And then different banks and people created digital transaction systems.
what is cryptocurrency and bitcoin , How does it work? | Chabid.com

In 2009, Satoshi Nakamoto founded Cryptocurrency. Cryptocurrency is developed using crypto logic and cryptographical techniques. It is Work on blockchain technology. 

Each cryptocurrency has a limit. Before creating a cryptocurrency, it is decided how much cryptocurrency will be mined.  

Generally speaking, cryptocurrency is a peer-to-peer payment network. It is a currency that is not controlled by any one institution or person. 

Everyone has control over this currency. The purpose of this was to remove banks or any third party. If a person should make a domestic or foreign transaction, he should not have to go around the banks.

The special thing about cryptocurrency is that only you know how much money you have. Cryptocurrency is not a transaction in your name but you are given an address that consists of 28 to 34 characters, with the help of this address you can send and receive cryptocurrency.

Bitcoin, Ethereum, LiteCoin, DogCoin, Ripple, Bitcoin Cash are some of the popular cryptocurrencies of today.

What is a bitcoin?

Satoshi Nakamoto first founded a cryptocurrency in 2009. Named Bitcoin. Bitcoin is the world's first cryptocurrency and its creator was either a group or Satoshi Nakamoto. It was not immediately clear who Satoshi Nakamoto was. 
what is cryptocurrency and bitcoin , How does it work? | Chabid.com
What is bitcoin 

There are currently over a thousand cryptocurrencies in the world.

Each cryptocurrency has a limit. Before creating a cryptocurrency, it is decided how much cryptocurrency will be mined. The bitcoin limit is 21 million.

Bitcoin works on blockchain technology. It is a digital currency and peer to peer payment network. We can also make bitcoins ourselves with the help of our computer. It is an independent digital currency or digital transaction system that no one has control over.

Guys, if the value of bitcoin was 0.0001$ in 2009 then today it is worth 41000$ in 2022. If someone then bought a $ 1 bitcoin, he would own billions of dollars today. Here is interesting story about bitcoin. 

Bitcoin Pizza Day

Bitcoin Pizza Day is celebrated on May 22 every year. The story behind it is very interesting. On May 22, 2010, Laszlo Hanyecz, a software developer, bought two pizzas for 10,000 bitcoins.

 At the time, the bitcoin cost only $ 41. And today, 10,000 BitCoins cost $15, 415,787,000. Laszlo Hanyecz had 100,000 bitcoins. If they had them today, they would be worth $15 41,578,700,000.

Bitcoin Pizza Day is celebrated on May 22 to commemorate this event.

If someone asks me what bitcoin is, my answer would be that bitcoin is not a currency but a great way to trade or make a profit. 

Guys, every bitcoin price goes up and down every second. The more people who buy bitcoins, the more bitcoins will cost. The fewer people buy it, the lower the price. There are thousands of cryptocurrencies in the market like Bitcoin that can be bought and sold.

Why the value of cryptocurrency rises or falls.

Guys, why is the value of cryptocurrency rising or falling, this is a great question. Guys, if we talk about common currency, then the value of dollar or Pakistani rupee can increase or decrease a little bit. But if we talk about bitcoin, the price of bitcoin can go up or down by hundreds or thousands of dollars in 24 hours. But that is not the case with ordinary currencies. Therefore, we cannot call cryptocurrency a currency.
what is cryptocurrency and bitcoin , How does it work? | Chabid.com

Friends, if we take the example of a piece of land, the price of land is higher when there are more buyers. Similarly, the reason for the rise or fall of cryptocurrency prices depends on its buyers. The more buyers there are, the higher the price. The fewer buyers, the lower the price. That's why friends, we can call cryptocurrency digital gold, not currency.

How to make money with Cryptocurrency 

Friends, what has been explained so far is nothing special. Whether it is a currency note or a digital currency, the common man does not care much about it. Now let's talk about how we can make money with cryptocurrency or bitcoin.

Friends, there are many ways to make money with cryptocurrency. Money can also be made by mining cryptocurrency. But it will require a very powerful computer and enough power.

Money can also be made by trading bitcoin or cryptocurrency. The method is very simple. If you want to trade in bitcoin or any other cryptocurrency, buy it when the value of this cryptocurrency is low. When the price goes up, you sell it.

How to get free cryptocurrency

Yes. Bitcoin or cryptocurrency can be earned for free. In free you can earn more if not more. Some websites offer you cryptocurrencies when you visit or promote their own business.

Friends, remember one thing, no one will give you anything for free, but you will be given some work and in return you will be given cryptocurrency. Like when you promote someone's application or website or you complete a task you will get cryptocurrency in exchange for money.

Cryptocurrency not currency

Friends, cryptocurrency can be used as currency but it is not a good currency for local transactions like other currencies. Suppose you want to get one kg of sugar which costs 1$. How would you do it if you had to pay the price in bitcoin? Because the value of the bitcoin goes up and down every 30 seconds. And the transaction takes 10 minutes to complete.u

however, the best way to do cryptocurrency transactions internationally. In short, cryptocurrency can be called digital gold.

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