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  • Category: Finance and Investments

    What are bitcoins? What are bitcoin addresses?

    Have a query about bitcoins? Looking out for how to use it? Check out this Ask Expert page and resolve your doubts.

    What are bitcoins? What are bitcoins addresses? Can we convert our bitcoins in to Rs? Or can we transfer bitcoins into our pay pal account? Which is a better bitcoin wallet in India?
    Let me know complete procedure to manage bitcoin currency.
  • Answers

    6 Answers found.
  • Bitcoin is a digital currency available in internet. It is a independent system and not under any bank or government. It may sound peculiar but true and many people across the world are using it through bitcoin exchanges and wallets.

    Through verification it can be linked to your bank account for transfer of equivalent local currency to your bank account.

    One can open a bitcoin account without any documents or papers to be produced and have a bitcoin address. It is confidential and one can hold multiple addresses. These addresses are not linked to your personal information. Practically your address is anonymous.

    There are many online exchanges and wallets which provide service for transactions and storage of bitcoin. Most of these are based in US, UK, China and Hong Kong. Presently very few of them are extending their services to India.

    One of the online company Unocoin is providing service to India but due to legal framework in India they are verifying the persons with their PAN card.

    Anyway there is a word of caution about this whole affair of bitcoin. It is so far not covered any legal system and independently functioning in online parallel to all real world financial institutions.

    This strange system was proposed by a person named as Satoshi Nakamoto. The system is based on some mathematical formula to generate bitcoins. The total number of bitcoins which can be generated is kept fixed by the program so day by day it is becoming difficult to generate them. It is called mining of bitcoin.
    Anyway we need not to worry about mining because we can purchase the bitcoin in online exchanges by paying our currency.

    As these bitcoins are available through trading in the exchange you have to quote a value to get them.

    There are some giant online retail stores which accept bitcoin as a payment option.

    If you are interested in knowing more about this untraditional currency technically known as cryptocurrency then you can visit these two sites -

    Knowledge is power.

  • Bitcoin is a cryptocurrency designed to be anonymous and without hold of any government. The way mining algorithm works, it is limited resource like gold. And after some time the value of bitcoin will rise like gold. So that is one way this currency was designed to avoid govt circulated currency. The person satoshi who wrote the algorithm is anonymous person. As thee currency is completely online and not in control of anyone, it makes you wonder what can be done with it. And many government around thee world are not allowing it.

    When you mine bitcoin and earn it, the earned coins are stored in wallet. This wallet has the address. This address is where you can get or send the bitcoin. Each person who has thee wallet address can be into circulation. The currency maybe anonymous but blockchain keeps track of hash being sent in transaction. Also the currency can be exchanged on sites like localbitcoin. Based on that value yyou can get paid in bank.

    So this is pretty much the overview of bitcoin and the bitcoin address.

  • What is bitcoin mining?

    Honesty is the best policy.

  • Bitcoin allow us to send money from one person to another without involving third party like a bank. A software developer Satoshi Nakamoto launch the concept of Bitcoin which is a founder of Bitcoin. It is legal but it depends on who you are, what you are doing with, where you are located. It was legalized as a formal method of payment in Japan and India might be next. Bitcoin is open for all so anyone can get benefit of it.

    Cryptography techniques encryption and decryption is used by both the sender and reciever for security. Lets try to understand with example:
    1. If Santa transfer bitcoin to Banta than Santa first informs Banta about transferring Bitcoins.
    2. Banta creates a block using cryptography key pair in which private key (secret key) is retained by Banta and public key that everyone knows.
    3. Santa tells bitcoin client, software that meditates the transaction, that he had like to send 8 Bitcoins to Banta's block.
    4. Client transfer the 8 bitcoins to the new block.
    5. The block is accessed by private key only, which now rests with Banta and public key , which other miners(decryption of encrypted transaction) used to verify the transaction.

  • Bitcoin is the highest digital currency on the web. It also takes 1 billion computers to mine a single Bit Coin and 20000 billions smart phones to mine a single bit Coin. Bit coins are mined using hit-tech super computers and ASSIC machines to mine which are way beyond an individual budget.

    Most people or miners team up with Pools and the digital transaction are divided among miners upon every successful verification of the transaction.

    One bitcoin is worth $2345.19 USD and that equals INR. 176552.16.

    The most trusted bitcoin Wallet provided by Coin Base and BitCoin. However the most secure is bitcoin because everytime you receive a transaction, your bitcoin wallet address get changed to avoid the hackers.

    You cannot directly transfer the bitcoin to your PayPal address. If one is intrigued to transfer bitcoin and convert it to real cash then open or create a Skrill account, and transfer it to Netteller, and convert it to PayPal account and transfer it to bank account.

    That's all the process.

    Hackers never learns but always wins!

  • Bitcoin is a digital currency which can be used for online transactions between individuals.

    Yes, you can convert your bitcoins into rupees. For selling your bitcoins, you must first list it on LocalBitcoins. But cashing out bitcoins can incur charges.

    Electrum, Armory, Coinbase are good bitcoin wallets.

    Bitcoin mining is a process wherein transactions are verified and is added to block chain. New bitcoins are released through bitcoin mining, Any one with internet and proper tools can participate in mining.

    "Do not give up, things might not favour you always"

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