Avaneesh Parasar Breaks Down The Bitcoin Basics For You
The news these days is brimming with pieces about bitcoin and how it can change the way e-commerce is looked at in the present world. While many people know what bitcoin is all about many are still perplexed and do not know what all the fuss is about. Avaneesh Parasar breaks down all the bitcoin basics for you in this blog.
The meaning of bitcoin
Gone are the days when traditional forms of currency were revered and considered extremely important. It is not that it is not important now but there is something that is now being looked at as equally important. Bitcoin is a form of digital currency and a payment system that is used worldwide. Avaneesh Parasar says that unlike traditional forms of currency, bitcoin is not controlled by a central bank, in fact, it is not controlled by any single entity and no single authority can destabilize or manipulate the network in which it runs. The process of generating bitcoins is called mining. By using powerful computer processors, groups or individuals working together solve a mathematical problem which leads to the uncovering of a bitcoin. This also serves to maintain the safety of all bitcoin transactions which take place throughout the network. Bitcoin is exchanged through an electronic system by its users via addresses generated through cryptography. The transactions are facilitated through third-party sites that are called exchanges.
Key features of bitcoin explained by Avaneesh Parasar
Created as an alternative to fractional reserve banking, bitcoin is different in its features when it is compared to traditional currency and its payment systems. The important features of bitcoin as pointed out according to Avaneesh Parasar are mentioned below. They are:
- It is decentralized: There is no central authority or persons who can seize control or manipulate the bitcoin network. There are individual users who are in charge of bitcoin.
- It is a global currency: No matter which country uses it, the value of bitcoin is the same throughout the world. No country can overinflate or devalue it.
- Transaction fees is minimal: The fees associated with bitcoin payments is fairly low. The exchanges offered by bitcoin offer several services whereby the fees vary. The fees is dependant on the kind of transaction. If you compare the fees to the likes of PayPal or other credit cards, it is much lower.
- Reduced risks: Bitcoin transactions are secure since they do not carry any personal information and cannot be reversed, merchants dealing in the transactions are protected against any kind of losses that may occur due to fraudulent credit card use.
Like everything else in life, the future in store for bitcoin may seem unclear, but for now, it has been the driving force behind elevating cryptocurrency to a collective conscience. Avaneesh Parasar feels that all we can do is sit back and watch how the future unfolds and what it leads to, but it is important to know what all encompasses the spectacular newfound craze called bitcoin.