Bitcoin is the first and most popular cryptographic money. The introduction of this currency to the people was done in 2009. It is believed that this currency follows the work process that was written by a mysterious person called Satoshi Nakamoto. Bitcoin is a digital currency and it uses cryptography to make it very secure. There are no physical bitcoins, just equilibriums kept on a public record and that everybody has straightforward admittance to. The transition that happens for Bitcoin is stored on the record as a block. A progression of exchanges structures a blockchain and this technology is known as blockchain technology. Here in this article, you will find all about cryptocurrencies. We will discuss all the information related to Bitcoin and the technology that it follows.
Bitcoin And The Future Of Money
Can you tell us what will be the future of money? This is quite predictable because our world is heading towards technology so we can easily say that the future will be based on technology. As we know that cryptocurrencies are highly volatile in nature and it has major ups and downs in their graph. Bitcoin is more popular among all the cryptocurrencies that are available in the market. The volatility depends on the financial laws that are implemented by the government.
If we talk about the Bitcoin future, it has been predicted that in the coming few years the price of bitcoin could reach new heights as per different Investment Analyses but still, it is quite hard to predict since there are a lot of external factors that implies the price. Talking about technicalities, there will be almost 94% of total bitcoins coming into circulation by the end of 2024.
Currently, there is a significant percentage of internet users who are deep-diving into the world of cryptocurrencies and are amazed by Bitcoin. If you look at the statistics, Bitcoin has made a good rise in terms of price and touched an all-time high of 69k USD in 2021. This proves that there is huge potential for cryptocurrencies in the financial markets of different countries across the world.
Apart from Bitcoin, a lot of Altcoins have come into existence. These altcoins work in a similar way but most of them are deployed on different Blockchains. One of the popular blockchains is Ethereum, where people have deployed ERC20 tokens. Some of the examples are BNB, TRX, and many more. Also, Bitcoin is also available on the Ethereum blockchain as wrapped Bitcoin which is an ERC-20 version of bitcoin.
How Does Bitcoin Work?
The way bitcoin works is quite new and different from how fiat currency works. Unlike Fiat currencies like USD or INR, there is a fixed supply that comes into circulation at regular intervals. Bitcoin is a computer program running on different computers that are maintaining a ledger also known as a blockchain. For anyone who buys or sells bitcoin, that transaction is added to the ledger after a transaction is validated. Bitcoin transactions are validated through the process known as Bitcoin mining, which we will discuss in the coming section. Once the Bitcoin transactions are validated, they are stored in a block using cryptographic algorithms and mathematics formulas. And further, this block is added to the blockchain.
Bitcoin Mining Explained
Bitcoin mining is now trendy and people are looking forward to bitcoin mining and want this as a career. Many crypto enthusiasts often ask the question – how bitcoin mining works?. Bitcoin mining is the process where all the computers maintaining the bitcoin ledger compete with others to validate the transactions and put them in the block which is further added to the Bitcoin Blockchain. The first Bitcoin Miner to put a block in Blockchain gets a reward of one block of Bitcoin.
During the initial phases, the bitcoin was mined on normal desktops and computer devices. But with time, the complexity of validating the transaction got increased and people needed to use high-performance devices such as the GTX & ASICs.
This consumes a lot of electric power and environmental resources. As per the statistics, Bitcoin miners consume electricity equivalent to the 100 households consuming electricity in one year in America. But in order to have less carbon footprint now, bitcoin miners have been buying out methane flares in texas. This has led to quite less use of nonrenewable resources for bitcoin mining.
According to Bitcoin Mining Council, it is estimated that the global mining industry’s sustainable electricity mix had grown to approximately 58.5%, during Q4 2021, up 1% from Q3 2021
How To Buy Bitcoin On Carret?
If you are amazed by the technology that Bitcoin uses and would like to invest in cryptocurrencies such as Bitcoin, then you should read this section. Unlike fiat currencies, you can’t get bitcoin from banks. At least not yet. There are specific web applications also known as cryptocurrency exchanges that allow you to trade cryptocurrencies and invest in them.
Currently, there are two different types of cryptocurrency exchanges, one is the centralized exchange and another one is the decentralized exchange. If you are into the Cryptocurrency and Blockchain ecosystem for quite a long and have a complete understanding of decentralized exchanges you can buy Bitcoin on them.
But the major drawback with decentralized exchange is that you need to pay a huge amount of fees which is also known as gas fees. Hence many people prefer to use the centralized exchange.
Carret is a custodial cryptocurrency exchange and the procedure to buy bitcoin on it is quite easy. The first basic step to buying bitcoin or any other cryptocurrency is to create an account by providing your details such as email ID, username, password, and a few other details. Once your account is created, you need to do KYC as a further step. This is done to ensure that there is no inappropriate activity happening and the user is a complaint to government regulations.
Once your KYC is done and approved, you can get some funds to your account through either UPI or a traditional Bank transfer. Once this is done, you can go to the dashboard and buy BTC for the INR. Unlike other cryptocurrency exchanges, you can earn interest on your holdings using caret. You can do trade any time in a day since, unlike traditional stock markets, cryptocurrency trading continues all day. But the number of trades depends on the liquidity of the tokens available.
The market cap of the cryptocurrency asset class is now ~ $2 trillion. From this, you can predict how much potential this market has. And this market capitalization is only expected to increase. This estimation of market growth is done by many experts in this field. Bitcoin is by a long shot the most noticeable digital currency, and it will in general show wide patterns in the crypto market. Bitcoin’s value hit an all-time high of ~$69,000 in 2021. Numerous specialists like Willy Woo & Dan Held say it is inevitable until BTC reaches $100,000, inferring that 2022 might be a fun chance to put resources into Bitcoin.
One of the criticisms of cryptocurrencies is that they have no genuine applications, and financial backers put resources into them simply based on speculation. This situation is starting to change as large digital forms of money, for example, Bitcoin and Ethereum gain genuine utility. Bitcoin is becoming popular as a store of value and it recently became the legal tender of Salvador when their President announced to make it legal tender in the country in 2021 and passed the bill in Parliament.
Bitcoin is assuming significance on the grounds that now it can become a new investable class and may be used as money in the future. To participate in this digital future where cryptocurrencies are the form of money, it is prudent to invest in assets like Bitcoin and you can do so by opening an account in less than 5 minutes on Carret.
FAQs – Frequently Asked Questions
Q. Do exchanges like Carret charge some extra fees?
Ans.- No, there are no extra charges to purchase bitcoin or any other cryptocurrencies on Carret Exchange. But there are small transaction fees associated to do the processing of each buy or sell transaction.
Q. Do you need some extra wallets to store bitcoin?
Ans.- No, most of the centralized exchanges are custodial exchanges, hence they store all the funds in cold storage. You don’t need to use any hardware wallet or software wallet. Carret has partnered with Fireblocks for custodial solutions.
Q. What is the minimum amount to purchase a Bitcoin?
Ans.- You can purchase Bitcoin on Carret with even a small amount starting from INR100. For other cryptocurrencies, it depends on the price and the liquidity of the token on the centralized exchange.
Q. How to transfer INR to Carret to buy Cryptocurrencies?
Ans.- Currently, Carret offers two different Methods to fill your account with INR, one is through Mobikwik wallet & the other will be paid through UPI which will be added soon. There will be more methods coming up in the near future.