Bitcoin rally: All you need to know about the cryptocurrency

12 December 2017, 08:02 AM
Now, what makes Bitcoin different from other mediums of exchange is that it uses cryptography. (Source: Bitcoin site)
Now, what makes Bitcoin different from other mediums of exchange is that it uses cryptography. (Source: Bitcoin site)

The recent plunge of Bitcoin to as much as 15 per cent and hitting up to record of $17,000 before plunging to $14,480 in Asian afternoon trade has rattled financial analysts all over the world.

It has soared more than 50 per cent in just a week and is up from a 2017 low of $752 in mid-January.

What is Bitcoin?

Bitcoin is a cryptocurrency, a digital asset that was designed as a medium of exchange.

Now, what makes Bitcoin different from other mediums of exchange is that it uses cryptography.

In layman’s words cryptography is about constructing and analyzing protocols that prevent third parties or the public from reading private messages.

Modern cryptography exists at the intersection of the disciplines of mathematics, computer science, electrical engineering, communication science, and physics.

So far Bitcoin has been traded on specialist platforms, but will debut on Cboe Futures Exchange this weekend and will also debut at the Chicago Mercantile Exchange (CME) on December 18.

The US Federal Reserve along with the Reserve bank of India, had warned against dabbling in Bitcoin as it could threaten financial stability, and fears of a bubble have increased as the price has soared.

How to get Bitcoin?

Buy:

One can get Bitcoin by accepting it as a payment for goods and services. Buyers can go to Bitcoin Exchange page that enlists many different businesses that can help you to buy Bitcoin using your bank account.

As ATM:

Bitcoin ATMs work like a regular ATM, except they allow you to deposit and withdrawal money so that you can buy and sell Bitcoin. Coin ATM Radar has an interactive map to help you find the closest Bitcoin ATM near you.

Current status:

Created by unknown people under a common name Satoshi Nakamoto, currently around 5.8 million use the cryptocurrency. According to a research produced by Cambridge University most of them use Bitcoin.

Around one million merchants accept Bitcoin as a mode a payment. 

First Published: Saturday, December 09, 2017 04:23 PM
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