Bitcoin (₿) is a decentralized digital currency, without a central bank or single administrator, that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries. Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain. The cryptocurrency was invented in 2008 by an unknown person or group of people using the name Satoshi Nakamoto. The currency began use in 2009 when its implementation was released as open-source software.
Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies, products, and services, but the real-world value of the coins is extremely volatile. Research produced by the University of Cambridge estimated that in 2017, there were 2.9 to 5.8 million unique users using a cryptocurrency wallet, most of them using bitcoin. Users choose to participate in the digital currency for a number of reasons: ideologies such as commitment to anarchism, decentralization and libertarianism; convenience; using the currency as an investment; and pseudonymity of transactions. Increased use has led to a desire among governments for regulation in order to tax, facilitate legal use in trade and for other reasons (such as investigations for money laundering and price manipulation).
Bitcoin has been criticized for its use in illegal transactions, the large amount of electricity (and thus carbon footprint) used by mining, price volatility, and thefts from exchanges. Some economists and commentators have characterized it as a speculative bubble at various times. Bitcoin has also been used as an investment, although several regulatory agencies have issued investor alerts about bitcoin.
The word bitcoin was defined in a white paper published on 31 October 2008. It is a compound of the words bit and coin. No uniform convention for bitcoin capitalization exists; some sources use Bitcoin, capitalized, to refer to the technology and network and bitcoin, lowercase, for the unit of account.The Wall Street Journal,The Chronicle of Higher Education, and the Oxford English Dictionary advocate the use of lowercase bitcoin in all cases.
Design
Bitcoin is based on an elliptic curve called “secp256k1” and encrypted with the ECDSA algorithm. The equation for the Bitcoin secp256k1 curve is {\displaystyle y}2={\displaystyle x}3+7. Bitcoin has a proposed Bitcoin Improvement Proposal (BIP) that would add support for Schnorr signatures
Units and divisibility
The unit of account of the bitcoin system is a bitcoin. Currency codes used to represent bitcoin are BTC and XBT.Its Unicode character is ₿. Small amounts of bitcoin used as alternative units are millibitcoin (mBTC), and satoshi (sat). Named in homage to bitcoin’s creator, a satoshi is the smallest amount within bitcoin representing 1⁄100000000 bitcoins, one hundred millionth of a bitcoin. A millibitcoin equals 1⁄1000 bitcoins; one thousandth of a bitcoin or 100,000 satoshis.
Bitcoin mining is the interaction by which new bitcoins are gone into course, yet it is likewise a basic part of the support and advancement of the blockchain record. It is performed utilizing exceptionally modern PCs that tackle very mind boggling computational numerical statements.
Cryptographic money mining is careful, expensive, and just irregularly fulfilling. In any case, mining has an attractive interest for some, financial backers inspired by digital money on account of the way that excavators are compensated for their work with crypto tokens. This might be on the grounds that innovative sorts consider mining to be pennies from paradise, similar to California gold miners in 1849. Furthermore, in case you are mechanically disposed, why not do it?
Notwithstanding, before you contribute the time and gear, read this explainer to see whether digging is truly for you. We will zero in essentially on Bitcoin (all through, we’ll use “Bitcoin” when alluding to the organization or the digital currency as an idea, and “bitcoin” when we’re alluding to an amount of individual tokens).
A New Gold Rush
The essential draw for some, mining is the possibility of being remunerated with Bitcoin. All things considered, you positively don’t need to be an excavator to possess digital money tokens. You can likewise purchase digital forms of money utilizing fiat cash; you can exchange it on a trade like Bitstamp utilizing another crypto (for instance, utilizing Ethereum or NEO to purchase Bitcoin); you even can procure it by shopping, distributing blog entries on stages that pay clients in digital money, or even set up revenue acquiring crypto accounts.
An illustration of a crypto blog stage is Steemit, which is similar to Medium with the exception of that clients can remunerate bloggers by paying them in a restrictive digital money called STEEM. STEEM would then be able to be exchanged somewhere else for Bitcoin.
The Bitcoin reward that excavators get is a motivator that inspires individuals to aid the basic role of mining: to legitimize and screen Bitcoin exchanges, guaranteeing their legitimacy. Since these obligations are spread among numerous clients from one side of the planet to the other, Bitcoin is a “decentralized” digital money, or one that doesn’t depend on any focal power like a national bank or government to manage its guideline.
Step by step instructions to Mine Bitcoins
Diggers are getting paid for their work as reviewers. They are accomplishing crafted by checking the authenticity of Bitcoin exchanges. This show is intended to keep Bitcoin clients fair and was brought about by Bitcoin’s originator, Satoshi Nakamoto. By checking exchanges, diggers are assisting with forestalling the “twofold spending issue.”
Twofold spending is a situation where a Bitcoin proprietor unlawfully spends the equivalent bitcoin twice. With actual cash, this isn’t an issue: when you hand somebody a $20 note to purchase a jug of vodka, you presently don’t have it, so there’s no risk you could utilize that equivalent $20 note to purchase lotto tickets nearby. While there is the chance of fake money being made, it isn’t actually equivalent to in a real sense spending a similar dollar twice. With advanced money, notwithstanding, as the Investopedia word reference clarifies, “there is a danger that the holder could make a duplicate of the computerized token and send it to a trader or another gathering while at the same time holding the first.”
Suppose you had one authentic $20 greenback and one fake of that equivalent $20. If you somehow managed to attempt to spend both the genuine bill and the phony one, somebody that took the difficulty of taking a gander at both of the bills’ chronic numbers would see that they were a similar number, and along these lines one of them must be bogus. What a Bitcoin digger does is closely resembling that—they check exchanges to ensure that clients have not misguidedly attempted to spend the equivalent bitcoin twice. This is definitely not an ideal similarity—we’ll clarify in more detail underneath.
Whenever diggers have checked 1 MB (megabyte) worth of Bitcoin exchanges, known as a “block,” those excavators are qualified to be remunerated with an amount of bitcoins (more about the bitcoin compensation underneath too). The 1 MB limit was set by Satoshi Nakamoto, and involves discussion, as certain diggers accept the square size ought to be expanded to oblige more information, which would viably imply that the bitcoin organization could measure and check exchanges all the more rapidly.
Note that checking 1 MB worth of exchanges makes a coin digger qualified to procure bitcoin—not every person who confirms exchanges will get paid out.
1MB of exchanges can hypothetically be pretty much as little as one exchange (however this isn’t at all normal) or a few thousand. It relies upon how much information the exchanges take up.
How Much a Miner Earns
The awards for Bitcoin mining are decreased considerably at regular intervals. When bitcoin was first mined in 2009, mining one square would procure you 50 BTC. In 2012, this was split to 25 BTC. By 2016, this was split again to 12.5 BTC. On May 11, 2020, the prize divided again to 6.25 BTC. In November of 2020, the cost of Bitcoin was about $17,900 per bitcoin, which means you’d procure $111,875 (6.25 x 17,900) for finishing a block.3 Not an awful impetus to tackle that intricate hash issue definite above, it may appear.
Bit-coining Effect on GPUs
The hype of mining etharium created a diverse and adverse effect in the computer world as most of the Computers work on graphic cards (GPUs) and etharium mining requires lots of GPUs to be arranged in a grid form connected to motherboards to supply enough energy for its mining . This heavy demand of GPUs created an effect of sky rocketing of their prices , the prices almost got tripled and due to which other Computer components also inflated , but everything has an end so China banned bitcoing mining due to which Chinese markets were flooded with GPUs with collapsed prices even below half the MRP . Talking about India the deflation rate is really slow because of hunger of money but is now its reducing .
“Any sufficiently advanced technology is indistinguishable from magic.” The statement has been very rightly said by Arthur C. Claire. Today Blockchain technology has certainly become the talk of the town. It is being widely used in the field of Finance. But its scope is much wider than that. Blockchain has the potential to revolutionise various fields besides finance like healthcare and education. The applications of blockchain are multi-dimensional. Introducing blockchain can help minimise costs incurred in data management and the time lost due to inefficient data practices.
WHAT IS BLOCKCHAIN?
Blockchain is a permanent, decentralized type of data set that stores data. As the name proposes, it is a chain or a progression of squares that store information like the date, time and measure of exchanges. There are different kinds of blockchains like public, private and permissioned. A public blockchain permits anybody to add to the organization. Henceforth open blockchains are both decentralized and popularity based. Inverse to this, permissioned blockchains permit just confirmed members to join the organization. Private and permissioned blockchains are comparable in work with one contrast. The thing that matters is that a specific association claims a Private blockchain.
The main component related with blockchains is security. Each square inside a blockchain contains a hash of the past block. A hash is a cryptographic key. These keys are put away in the common record. The keys are likewise associated by a cross section of hubs that go along with them. Every hub contains a duplicate of the entire chain which is synchronized and refreshed continually. Along these lines hashing makes it hard to change the squares. In this way it guarantees permanence. Additionally, boosting diggers guarantees honesty as they oppose noxious exchanges. These components guarantee the high security of information.
INTERTWINING BLOCKCHAIN AND SUPPLY CHAIN MANAGEMENT
In regular store network the board frameworks, execution blunders like slip-ups in stock information, missing shipments, befuddle in actual stock with the recorded stock, copy installments are normal. These issues are frequently difficult to pinpoint the wellspring of the issue. Regardless of whether conceivable, it will be troublesome and costly to fix that issue by following all the grouping of exercises record in the record and archives made in an ordinary store network framework. In a customary store network, requests, installments, and shipments may not match up as expected. A request might part into a few shipments with many solicitations, or different orders can join into one single shipment. These issues of the regular store network the executives framework are tackled effectively with the assistance of the presentation of blockchain innovation in the store network the board framework. Blockchain innovation can deal with the entire inventory network from the obtainment of crude material to the last conveyance of the items to the clients.
INTERTWINING BLOCKCHAIN AND MEDICINE
In the coming years, created nations like the USA intend to spend practically 20% of their Gross domestic product on medical services. Notwithstanding, costs adding up to almost $11 billion are caused yearly because of wasteful information the executives in the medical care area. Blockchain can without much of a stretch pop this always swelling cost bubble. It can store a decentralized, upright record of patient information. Private Blockchain can record delicate patient information with special private keys. Somewhere in the range of 2009 and 2017, medical clinics had lost in excess of 176 million patient records because of information breaks. In such a case, Blockchain can guarantee the wellbeing and security of records through private keys.
Moreover, the emergency clinic can impart patient information to various resources associated with the treatment through the interesting shareable key. It would take out the delay associated with patient information sharing.
Decentralization of Blockchain suggests store network detectability too. Blockchain would record each progression of the shipment of meds. Subsequently, patients can think about subtleties like the wellspring of beginning, the genuine provider, and contact focuses. The expense to deal with a genome has descended from $1 billion out of 2001 to simply $1000. So the capacity of genomics to improve medical care is a logical and monetary truth. Be that as it may, genomics information burglary has become an extreme issue. Many organizations have brought singular DNA sequencing. So security of genomics information is a fundamental concern. Blockchain can give a virtual market where researchers buy encoded information for research purposes. Hence, it would wipe out both the time and the brokers engaged with the interaction. Consequently, Blockchain has an incredible potential to upgrade HIT (Wellbeing Data Innovation).
INTERTWINING BLOCKCHAIN AND EDUCATION
Presenting Blockchain in schooling would prompt diverse improvement in learning. Blockchain can undoubtedly store understudies’ accreditations securely because of the security components of Blockchain. It would likewise decentralize command over information. Thusly, the order would not think with a unified power like the school or the college. Likewise, understudies can undoubtedly impart their subtleties to their planned bosses. Bosses can likewise discover wonderful counterparts for workers dependent on this information.
Understudies can’t modify their previous affirmations, subsequently guaranteeing the exactness of information. Blockchain would store the hash of the information and not simply the information, and understudies can likewise encode their information, subsequently dealing with security. Blockchain’s OpenSource structure can assist with further developing web based instructing moreover. Understudies can likewise go into Smart Contracts with their particular schools identifying with different installments like educational expenses, test charges. Smart Contracts can likewise mechanize administrator work. It would limit the huge expense brought about in doing managerial errands. Thus Blockchain can incite multi-dimensional advancement in instruction.
Bit coin cash is a crypto currency, from a fork of Bit coin that was created in August 2017. Bit coin cash was created to accommodate a larger block size compared to Bit coin, allowing more transactions into a single block.
Later in November 2017 it split into 2 crypto currency
Bit coin Cash ABC and
Bit coin Cash SV (Satoshi Vision)
Despite their philosophical differences, both Bit coin and Bit coin cash share several similarities.
1 BITCOIN CASH = 36683.18 INDIAN RUPEE
HISTORY OF BIT COIN TO BIT COIN CASH:
Bit coin was meant to be a peer-to-peer crypto currency that was used for daily transactions. But over the years it became an investment vehicle instead of a currency. Its block chain witnessed scalability issues because it could not handle the increased number of transactions. The confirmation time and fees for a transaction was urged. It’s due to 1MB block size limitation for bit coin which results in queued transactions.
As a remedy to this situation Bit coin cash was proposed by increasing the size of blocks to between 8 MB and 32 MB, thereby enabling more transactions per block. “Bitcoin cash is the version of bitcoin that implemented an increase in the transaction capacity,”
DIFFERENCE IN BIT COIN AND BIT COIN CASH:
Unlike bit coin, bit coin cash uses a separate hash algorithm which eliminates the possibility of a replay between the two block chains.
Bit coin is difficult to beat in terms of price when compared to bit coin cash.
Bit coin cash is well ahead of bit coin in terms of transaction speed.
Bit coin cash has lower transaction cost than Bit coin.
BIT COIN CASH IN INDIA:
Binance is one of the world’s largest and best known crypto currency exchanges. As an Indian trader, one can buy Bit coin cash on binance.
As per reports, Bit coin cash worth will rise to $2000 by the year 2025.Supply of Bit coin is limited to 21 million.
IS IT A GOOD INVESTMENT?
Investing in bit coin is like a roller coaster ride. Bit coin Cash offers the potential for otherworldly profit but at the same time it has high risks and crazy price swings.
CRYPTO CRASH:
According to Visual Capitalist, Bit coin has crashed 80% or more three different times since 2012. Therefore today’s crypto crash is nothing new. No one knows the future, so no one can say whether Bit coin is going up or down in the near term. However, it is good to say the odds are high that the price of Bit coin will be higher following the next halving event, which is expected in 2024.
TRADING OVERVIEW:
Exchange
Pair
Price
Binance
BCH/TUSD
$ 447.04
Kucoin
BCH/USDC
$ 445.73
Huobi Global
BCH/USDT
$ 448.22
UPbit
BCH/KRW
$ 462.65
BIT COIN CASH PRICE CHART:
24 Hour High
24 Hour High
Market Capitalization
476.98 USD
444.80 USD
8,632,223,279.93 USD
CONCLUSION:
If Bitcoin’s history teaches us anything, it’s to expect the unexpected. If Bit coin’s history teaches us anything, it’s to expect the unexpected. If you’re willing to hold a small position for the long term, then it is recommended to buy some Bit coin. But one mustn’t buy today hoping to get rich tomorrow.
Hello, friends! You already know about the rupee coin and Bitcoin But there’s a new coin that’s globally famous now. It’s called the Dogecoin. The value of our rupee is based on our currency. And Bitcoin is based on Blockchain that promises to revolutionize the monetary systems around the world.
But this Dogecoin is based on a meme. Literally! This coin was made in jest. Someone took the Doge meme, this meme of the dog was quite famous at some point and made a coin out of it. It’s like someone taking the “Pawri ho rahi hai” meme and turning it into a “Pawri coin”. Or this meme of Akshay Kumar being made into “Akki coin”. It’s quite possible.
Someone may very well make these Pawri coin and Akki coin. Because cryptocurrency is so decentralised that any person can develop their own coin. They’d need basic coding knowledge to do that. But the thing is that this Dogecoin became so famous that people like Elon Musk started buying it and promoting it. Why did it happen? Come let’s find out in today’s video on Dogecoin.
After the popularity of Bitcoin, several people brought up its disadvantages. Like, the long transaction time of Bitcoin. Or that the whole process of Bitcoin consumes a lot of energy. And that’s not good for the environment. That’s why some people considered making their own coins. These coins are known as Alt-Coins. i.e. Alternative Coins. Because they’re the alternative to Bitcoin.
And they try to counter the disadvantages of Bitcoin. By some method or the other. Like Ethereum, Litecoin, I talked about them in the Alt-Coins video. You can watch them as well. The link will be in the description below. But after Alt-Coins had been developed, people realized that anyone can create their own coins. So some people started creating their own coins for fun.
There were no advantages in their coins as compared to Bitcoins. They simply changed the name and created a new coin. Some scammers made their own coins as well. And fooled people to invest in their coins to drive the value of the coin After which the scammer would take back his investment and the people will suffer heavy losses while the scammer would walk away with a significant profit.
This is known as a Pump and Dump scheme. So many people created their coins for fun. Some for scamming people others for absolutely no reason. It was only meant as a joke. These coins which were created for no reason they are often known as Shitcoins. Because they do not add any value to the world. They aren’t bringing about any improvement in the process. So they’re Shitcoins.
Some people believe that Dogecoin is also a Shitcoin. The only difference is that the purpose of creating Dogecoin wasn’t to scam people it was only to prank people. It was only a joke. This Doge meme was at the peak of its popularity in 2013. Jackson Palmer, an Australian marketer and Billy Markus, a software developer at IBM developed this Dogecoin then. Palmer says that he thought up this idea as a joke. to combine the two most popular trending topics on the internet. Cryptocurrency and the Doge meme.
The code of Dogecoin is based on Litecoin. Litecoin is an Alt-Coin that does have a few advantages over Bitcoin. Like lesser processing time and lower transaction fees. But it is truly surprising that the market valuation of Dogecoin has already surpassed that of Litecoin. If you look at the largest cryptocurrencies of the world Dogecoin coin has become the fourth-largest cryptocurrency.
After Bitcoin, Ethereum and Binance. The biggest question here is how is it possible? How did a coin made as a joke gain such popularity? Why are people buying it? The first reason is the Reddit website. People on Reddit started using it as a joke initially. Whenever someone liked a post or comment on Reddit, people would award some Dogecoins to the OP as a tip. It was known as the DogeBot tip.
Usually, this was a tip of 5 Dogecoins. And at the time the value of Dogecoin was 0.0002¢. It was a very small amount. But using Dogecoin as a tip started gaining popularity on Reddit. And this expanded over the years. Dogecoins were used so much and exchanged so many times that their value started increasing rapidly.
In September 2018, the CEO of Tesla, Elon Musk noticed it. Elon Musk met Jackson Palmer on the issue of Twitter scambots. The fake Twitter accounts that scam people using the guise of cryptocurrency. Elon Musk wanted to take them down because his name was being used to run these scams.
So he asked for Jackson Palmer’s help on this. That was when Elon Musk came to know about Dogecoin. After 7 months he tweeted “Dogecoin might be my fav(ourite) cryptocurrency.” In March 2020 he tweeted “Dogs rock. They are the best coins.” So in the coming months and years he tweeted about Dogecoin several times which were indirectly or directly promoting Dogecoin.
And because Elon Musk is so famous, perhaps the most renowned and liked billionaire in the world, every time he tweeted, it sent up the value of Dogecoin by 25% – 50%. Eventually, 2021 followed 2020. And now the value of Dogecoin has exceeded 50¢. At its peak, Dogecoin had almost touched the valuation of $80 billion.
Though its price has fallen a bit in the last couple of days, but the supporters of Dogecoin aim to drive its value up to $1. It means that the value of 1 Dogecoin would be equal to $1. Currently, it is around 50-60¢.
Talking about the real-life use of Dogecoin, the community of Dogecoin have donated to several charitable causes. Their first donation was to a Jamaican Bobsleigh team of $30,000 in Dogecoins so that the team could participate in the 2014 Russian Winter Olympics. After this, for some water conversation projects in Kenya and for helping some special needs children, the community of Dogecoin donated money.
And who are the community of Dogecoin? What do I mean by this? Basically, there is a subreddit on Dogecoin where the users who buy and promote Dogecoins come together and make such donations. But overall, friends, I’d say that Dogecoin has become a cultural trend now. It does not have a value of its own.
It isn’t bringing in any significant technological advancement neither is it unique. Only because of its circumstances Dogecoin has become so popular now. And this is needed to be understood by those people that think that if they invest in Dogecoin now and they would get 10x, 100x, 1000x returns. That Dogecoin is a good investment.
You need to understand the cultural trends grow exponentially. And die down after their peak. There is a very high possibility that this may happen. I’m not giving you any investment advice here. You can buy Dogecoin if you want to. I’m just saying that be cautious of the huge risk.
But higher the risk in investment, there are more chances of high returns as well. It is possible that after a few years, Dogecoin may be valued at $100 instead of a paltry $1. But it is equally possible that its value may become 0 instead of the 0.50¢ now.
All your investment may vanish. Because predicting cultural trends on the internet is next to impossible. You’d basically be trying to predict how the world would think collectively. I believe that the same thing applies to Bitcoin as well. You should invest only that much in Bitcoin that you can afford to lose.
If Bitcoin crashes to 0 tomorrow, you would not suffer much even after all your investment vanishes. And Dogecoin is even riskier than Bitcoin. So this is even more valid for Dogecoin than it is for Bitcoin. At least Bitcoin has some value of its own. Because it presents a revolutionary technology. I
t presents an alternative monetary system. But it is not so with Dogecoin. But at the same time, also remember this, friends, that only those things have any value in the society, in which people believe. If people think that a thing should have value, it does.
You can see this with so many things. If people think that branded clothes have value, then their value exists and people buy them at exorbitant prices. The same thing applies to Dogecoin as well. If every one of us starts believing that Dogecoin does indeed have a value even if there really isn’t any, people would want to buy it which would drive up its value.
And what can be the reason behind it? Absolutely any reason. If someone claims that Elon Musk’s brand is attached to Dogecoin and it has a high value the same reason as with clothes. If a cloth is marked by a brand it has a high value. For the same reason, someone may say that Dogecoin’s value should be higher.
If society starts believing this its value will grow. And if society doesn’t, its value will fall.
The Reserve Bank of India is likely to soon kick off pilot projects to assess the viability of using digital currency to make wholesale and retail payments to help calibrate its strategy for introducing a full-scale central bank digital currency (CBDC).
India is already a leader in digital payments, but cash remains dominant for small-value transactions, he said, stressing that an official digital currency would reduce the cost of currency management while enabling real-time payments without any inter-bank settlement.
“Every idea has to wait for its time, perhaps the time for a CBDC is here,” RBI Deputy Governor T. Rabi Sankar said on Thursday. “Like other central banks, we have also been exploring the pros and cons of this since quite some time,” he added. A high-level inter-ministerial committee set up by the Finance Ministry had recommended the introduction of a CBDC with changes in the legal framework including the RBI Act, which currently empowers the RBI to regulate issuance of bank notes.
Transacting with CBDC would be an instantaneous process as the need for inter-bank settlement would disappear as it would be a central bank liability handed over from one person to another, Mr. Sankar pointed out. Moreover, foreign trade transactions could be speeded up between countries adopting a CBDC. “India’s fairly high currency-to-GDP ratio holds out another benefit of CBDC — to the extent large cash usage can be replaced by CBDC, the cost of printing, transporting and storing paper currency can be substantially reduced,” Mr. Sankar said at a discussion hosted by Vidhi Centre for Legal Policy. CBDC will be India’s sovereign currency in an electronic form.
According to the RBI deputy Governor, since CBDC is a currency that does not pay interest, its impact on bank deposits may “actually” be limited.“Depositors that require CBDCs for transactional purposes are likely to sweep day end balances to interest-earning deposit accounts,” he said.
However, he said that CBDC is not comparable to the private virtual currencies that have mushroomed over the last decade. He said, “Private virtual currencies sit at substantial odds to the historical concept of money. They are not commodities or claims on commodities as they have no intrinsic value; some claims that they are akin to gold clearly seem opportunistic.”
Complements fiat currency?
Sajai Singh, Partner at J Sagar Associates, said, “RBI is moving in the right direction with regard to digital currencies. Any RBI backed digital currency will come with a promise of less volatility and greater security for the bearer of the same. This will be very different from cryptocurrencies, like Bitcoin and Ethereum, which are rather popular, but carry innumerable risks. Also, RBI’s support to a digital currency will ensure its financial stability. It will be similar to say a potential digital Euro and digital Yuan.”
FaTE of crypto’s
According to Patel, CBDC’s might have a negligible direct impact on private digital currencies such as Bitcoin, Matic, Doge, etc. These private cryptocurrencies are based on ‘decentralization’. “The sovereign digital currencies are in stark contrast to decentralization, as the central banks govern and control them. However, as and when CBDCs start gaining more adoption, people would get to learn more about private cryptocurrencies as well. It would indirectly act as a catalyst to creating awareness of the practical usage of cryptocurrencies. That is when the crypto markets would start getting increased retail participation as well,” he told FE Online.
A cryptocurrency is a form of digital asset based on a network that is distributed across a large number of computers. This decentralized structure allows them to exist outside the control of governments and central authorities. Dogecoin is a type of cryptocurrency created by software engineers Billy Markus and Jackson Palmer, who decided to create a payment system as a joke, making fun of the wild speculation in cryptocurrencies at the time. It was initially released on December 6, 2013, and quickly developed its own online community, reaching a market capitalization of US$85,314,347,523 on May 5, 2021.
Dogecoin.com promotes the currency as the “fun and friendly internet currency”, referencing its origins as a joke. It further gained major popularity when founder, CEO, and Chief Engineer at SpaceX and one of the richest person of the world – Elon Musk talked about it. Billy Markus was a IBM software engineer and Jackson Palmer was a Adobe Software engineer.
Palmer had purchased the domain Dogecoin.com and added a splash screen, which featured the coin’s logo and scattered Comic SanMarkus reached out to Palmer after seeing the site, and started efforts to develop the currency. Markus designed Dogecoin prototype based on other cryptocurrencies such as litecoin and Lucky coin using the scrypt technology in their proof-of-work algorithm.
On December 19, 2013, Dogecoin jumped nearly 300 percent in value in 72 hours, rising from US$0.00026 to $0.00095,with a volume of billions of Dogecoins per day. This growth occurred during a time when bitcoin and many other cryptocurrencies were reeling from China’s decision to forbid Chinese banks from investing into the bitcoin economy. But three days later its value dropped by 80%.
Blockchain is a system of recording information in a way that makes it difficult or impossible to change, hack, or cheat the system.
A blockchain is esstenially a digital ledger of transactions that is duplicated across the entire network of computer systems on the blockchain. Each block in the chain contains a number of transactions, and every time a new transaction occurs on the blockchain, a record of that transaction is added to every participant’s ledger. The decentralised database managed by multiple participants is known as Distrributed Ledger Technology (DLT).
Blockchain is a type of DLT in which transactions are recorded with an unchangeable cryptographic signature called a hash. This means if one block in one chain was changed, it would be immediately apparent it had been tampered with. If hackers wanted to corrupt a blockchain system, they would have to change every block in the chain, across all of the distributed versions of the chain.
There have been many attempts to create digital money in the past, but they have always failed. The prevailing issue is trust. If someone creates a new currency called the X dollar, how can we trust that they won’t give themselves a million X dollars, or steal your X dollars for themselves?
Bitcoin was designed to solve this problem by using a specific type of database called a blockchain. Most normal databases, such as an SQL database, have someone in charge who can change the entries (e.g. giving themselves a million X dollars). Blockchain is different because nobody is in charge; it’s run by the people who use it. Bitcoins cannot be faked, hacked or double spent – so people that own this money can trust that it has some value.
The Tesla boss changed his Twitter profile picture to snap of him wearing glasses reflecting Dogecoin’s symbolic Shiba Inu, making the cryptocurrency value jump on Monday.
The picture shows musk in a mirrored sunglasses with Shiba Inu dog flashing through the frame.
The tech billionaire changed his display picture soon after mentioning that his son was holding his doge like a champin a reply tweet.
This isn’t the first time Musk has mentioned Dogecoin. The 50-year-old has often sent the prices of doge cryptocurrency soaring on numerous occasions by sharing memes on social media. And Musk’s recent picture change did not go unnoticed by Dogecoin’s co-founder Bill Markus, who took to Twitter to share his own meme.
Thought previously Dogecoin saw a jump in the market, the recent fall of cryptocurrencies has been a matter of worry for many, especially the investors. However, the recent push by Musk surely brought slight relief for Dogecoin.
Dogecoin (DOGE) is a cryptocurrency that is taking the world by storm with over 129.5 billion coin in circulation. In 2013, Jackson Palmer and Billy Markus created this open source cryptocurrency as a sarcastic meme coin. Even though it was started as a joke, Doge’s blockchain still has a lot of merit as it is derived from Litecoin’s technology. Dogecoin can be merge mined with Litecoin, meaning miners can mine both cryptos simultaneously using the same work. Essentially, practically everyone who mines Litecoin chooses to mine Dogecoin as well, because merge mining Dogecoin increases profits. Dogecoin has the image of a Shiba Inu dog as its logo and has a loyal community of supporters who trade it and use it as a tipping currency for social media content. This group has banded together to support a variety of charitable endeavours and other ventures. They were also able to fund a NASCAR race.
Billy Markus thought that by branding it as a more lighthearted coin, it would have a greater chance of going mainstream, as opposed to coins like Bitcoin and Ethereum. Dogecoin’s casual presentation suited the mood of the burgeoning crypto community. Its scrypt technology and unlimited supply was an argument for a faster, more adaptable, and consumer-friendly version of Bitcoin. Dogecoin is an “inflationary coin,” while cryptocurrencies like Bitcoin are deflationary because there’s a ceiling on the number of coins that will be created. Although Dogecoin is nowhere near the scale of Bitcoin, the meme currency’s market cap has risen from more than $1 billion in early January to $47 billion in May according to CoinMarketCap.
Celebrities like Elon Musk and Snoop Dogg have been supporting Dogecoin, which is driving its price up. There are even rumours that Tesla will begin accepting dogecoin soon. Elon Musk’s tweets once even caused the price to rise from a 24-hour low of 0.062 dollars to 0.078 dollars, a 20% increase. A strange combination of factors, including Elon Musk’s apparent endorsement for the coin and overwhelming support from Robinhood dealers, has propelled Dogecoin into the mainstream. Many have even started calling Musk “The Dogefather”. DOGE liquidations topped Bitcoin (BTC) at one point during the market mania, demonstrating the asset’s great demand.
On a year-to-date basis, the token has climbed approximately 7,000 percent. DOGE achieved its all-time high of $0.73 on 8 May 2021, driven by Elon Musk as well as its cult following. At this rate it just might become a viable currency. Doge to the moon!
Bitcoin, the name synonymous with cryptocurrency, has become the default thought for most people when they hear about digital currencies. It is the pioneering cryptocurrency that brought the concept of decentralized, digital money into the mainstream, offering a medium of exchange that exists entirely in the digital realm. Invisible and intangible, cryptocurrencies like Bitcoin have altered our perceptions of what money can be.
The Origins of Bitcoin
Bitcoin was introduced to the world in a 2008 white paper by an individual or group of individuals using the pseudonym Satoshi Nakamoto. The true identity of Satoshi Nakamoto remains one of the digital age’s most intriguing mysteries, with theories about their identity ranging from a Finnish sociologist to an Irish mathematician. Despite numerous investigations and speculation, Nakamoto’s identity remains undisclosed, adding an element of mystique to Bitcoin’s origin.
The Mechanics of Bitcoin
Bitcoin operates on a technology known as blockchain, which is essentially a public ledger that records all transactions across a network of computers. Blockchain technology ensures that every transaction is securely encrypted and virtually impossible to tamper with, providing a high level of security and transparency.
Bitcoin is created through a process known as mining. Contrary to what the term might suggest, this mining is purely digital and involves solving complex mathematical puzzles using powerful computers. Successful miners are rewarded with new bitcoins, contributing to the gradual increase in the total supply.
Decentralized Nature
One of the core features of Bitcoin is its decentralized nature. Unlike traditional currencies, Bitcoin operates independently of a central authority. This decentralization means that no single entity, including governments, has control over it. The decentralized structure not only enhances security but also eliminates the need for intermediaries such as banks in financial transactions.
Transaction Speed and Efficiency
Bitcoin transactions are known for their efficiency. A typical transaction can be confirmed within about 10 minutes, regardless of the geographical locations of the parties involved. This speed, coupled with the absence of intermediaries, makes Bitcoin an attractive option for many users worldwide, especially in regions where access to traditional banking is limited or non-existent.
The Impact of Bitcoin
Bitcoin has paved the way for thousands of other cryptocurrencies, each with unique functionalities and purposes. As the progenitor of this revolutionary technology, Bitcoin remains the most well-known and widely used cryptocurrency. Its introduction has spurred debates about the future of money, privacy, and the role of sovereign currencies in an increasingly digital world.
In conclusion, Bitcoin is not just a currency but a groundbreaking technology that has challenged the traditional financial systems and introduced a new era of decentralized digital assets. Its ongoing development and the dynamic ecosystem it has inspired continue to influence various sectors, including finance, law, and technology.
We all know about Rupee coin and Bitcoin. Now there is another similar thing getting noticed and goes spoken more. That is Dogecoin. The value of rupee is based on Dollar currency and Bitcoin is based on Blockchain that promises to revolutionise the monetary systems around the world. But this Dogecoin is based on a meme. This coin was made in jest. In this blog, let’s see about this Dogecoin.
Someone took the Doge meme, the meme of this dog was quite famous at some time and a coin was made out of it. It’s like taking a ‘Akshay Kumar meme’ and creating a Akshy coin. It’s easy. Anyone can create it. Because cryptocurrency is so decentralised that any person can develop their own coin. They will need basic coding knowledge to do that. But the thing is that Dogecoin became so famous that, elite people like Elon Musk started buying it and promoting it.
After the popularity of Bitcoin, several people bought up its disadvantages. Like the long transaction time of Bitcoin. It that the whole process of Bitcoin mining consumes a lot of energy. And that is not good for the environment. That’s why some people considered making their own coins. These coins are called Alt-coins. i.e. Alternative coins (Named because they are alternative to Bitcoins). And they try to counter the disadvantages of Bitcoin. Examples: Etherium, Litecoin. But after Alt-coins had been developed, people realised that everyone can create their own coins. So people started creating their own coins for fun. But there was no advantages in their coins as compared to Bitcoin. Some scammers created their own coins and fooled people to invest in those coins. To drive the value of the coin, they followed Pump and Dump scheme. That is many people would put in their money and then the scammers take away their money. Then the people would suffer heavy losses and the scmmer would gain many. Some coins are created just for fun. These coins which were created without any reason are called as Shitcoins. Because they add no value to the world. They are not bringing any improvements to the process.
Some people believe that Dogecoin is also a Shitcoin. It was not created to scam people but just to make prank on people. It’s only for jokes. This doge meme was at the peak of its popularity in 2013. Jackson Palmer, an Australian marketer and Billy Markus, a software developer at IBM developed this Degecoin together then. Palmer says that he thought up this idea as a joke to combine two most popular things on the internet. Cryptocurrency and Doge meme. The code of Dogecoin is based on Litecoin. Litecoin is an Alt-coin that does have a few advantages over Bitcoin. Like lesser processing time and lower transaction fees. But the surprising thing is that the market valuation of Dogecoin has already surpassed that of Litecoin. If you look at the largest cryptocurrencies in the world, Dogecoin has become the fourth -largest currency.
Let’s discuss about this more in Part-2. Bye.! #stayhomestaysafe
Dogecoin, evolved just as a meme and fun factor now got more attention. It became the fourth- largest cryptocurrency in the world. After Bitcoin, Etherium and Binance. The biggest question is how is it possible? How did a coin made as a joke gain such popularity? Why are people buying it?
The first and foremost reason is Reddit website. People on Reddit started using it as a joke initially. Whenever someone liked a post or a comment on Reddit, people would award some Dogecoins to the OP as a tip. It was known as the DogeBot tip. Usually, this was a tip of 5 Dogecoins. And at that time, the value of Dogecoin was 0.0002¢. It was a very small amount. But using Dogecoin as a tip started gaining popularity on Reddit. And this expanded over years. Dogecoins were used so much and exchanged so many times that their value started increasing rapidly. In September 2018, the CEO of Tesla, Elon Musk noticed it. Elon Musk met Jackson Palmer on the issue of Twitter scambots. The fake Twitter accounts that scam people using the guise of cryptocurrency. Elon Musk wanted to take them down because his name was being used to run these scams.
So he asked Jackson Palmer to help on this. That was when Elon Musk came to know about Dogecoin. After 7 months he tweeted “Dogecoin might be my fav cryptocurrency. It’s pretty cool”. In March 2020 he tweeted “Dogs rock. They are the best coins”. So in the coming months and years he tweeted about Dogecoin several times which indirectly or directly promoting Dogecoin. And because Elon Musk is so famous, and perhaps the most renowned and liked billionaire in the world, every time he tweeted, it sent the value of Dogecoin by 25% to 50%. Eventually 2021 followed 2020. And now the value of Dogecoin has exceeded 50¢. At its peak, Dogecoin had almost touched the valuation of $80 billion. Though its price has fallen a bit in the last couple of days, the supporters of Dogecoin aim to drive its value to $1. It means that the value of 1 Dogecoin would be equal to $1. Currently it is around 50-60¢.
And what is the process to buy Dogecoin?
It is the same as buying any other cryptocurrency. You have to use cryptocurrency exchange platforms.
Talking about the real life use of Dogecoin, the community of Dogecoin have donated to several charitable causes. Their first donation was to a Jamaican Bobsleigh team of $30,000 in Dogecoins. So that the team could participate in the 2014 Russian Winter Olympics. After this, for some water conservation projects in Kenya and for helping some special needs children, the Dogecoin community donated.
Who are the community of Dogecoin?
Basically there is a subreddit on Degecoin where the users who buy and promote Dogecoins come together and make such donations.
But overall friends, now Dogecoin has become a culture trend now. The value of Dogecoin goes higher, higher and higher and one day it will reach its peak. Then, it will start decreasing. There is a very high possibility for this to happen.
Bitcoin is a virtual monetary unit and therefore has no physical representation. A bitcoin unit is divisible and can be divided into 100 million ”Satoshis” the smallest fraction of a bitcoin. the bitcoin blockchain is a data file that carries the records of all past bitcoin transactions, including the creation of bitcoin units. it is often referred to as the ledger of the bitcoin system. the bitcoin blockchain consists information about new bitcoin transactions. the average time between bitcoin blocks to 10 minutes. the first block was created in 2009 and at the time of this writing was appended as the most recent block to the chain. because everyone can download and read the bitcoin blockchain, it is a public record, a ledger that contains bitcoin ownership information for any point in time.
The word ledger has to be qualified here. there is no single instance of the bitcoin blockchain. instead every participant is free to manage his or her own copy of the ledger accounts. instead there is a predefined set of rules and the oppurtunity for individuals to also has to be qualified because the owners of bitcoin units usually remain anonymous through the use of pseudonyms. to use the bitcoin system, an agent downloads a bitcoin wallet. a bitcoin wallet is software that allows the receiving, storing, and sending of bitcoin units. the next steps is to exchange fiat currencies, such as the U.S dollar, for bitcoin units. the most common way is to open an account at one of the many bitcoin exchanges and to tranfer a fiat currency to it. the account holder can then use these funds to buy bitcoin units or one of the many other cryptoassets on the exchange. due to widespread adoption of bitcoin, the pricing on large exchanges is very competative with relatively small bid ask spreads. most exchanges provide order books and many other financial tools that make the trading process transparent. a bitcoin transaction works in a way that is similar to a transaction in the yap payment system.
for a virtual currency to function, it is crucial to establish at every point in time how many monetory units exist, as well as how many new units have been created. there must also be a consensus mechanism that ensure that all participants agree about the ownership rights to the virtual currency units. in small communities as with the yap islanders everyone knows everyone else. the participants care about their reputation and conflicts can be disputed directly. in contrast within the bitcoin system the number of participants is substantially larger, and network participants can remain anonymous.
India is a massive cash dependent economy with a 13% cash-to-GDP ratio to the global average of 2.5 to 8%. This invites many illegal transactions and black money within the system. The government hence, figured out that going cashless can be a solution to reduce these money laundering transactions, and a fair play in the economy of the country will persist.
In 2005, a tax named ‘Banking Cash Transaction Tax’ was one of the steps taken towards the removal of black money by the then finance minister, P.Chidambaram of UPA government, which levied a tax of 0.1% on withdrawals of cash above 10,000 rupees. But this mainly focused on the banks, while blurring the cash users like merchants or businessmen.
Demonetization was the next major and effective step taken by Prime Minister Narendra Modi to evacuate black money and embrace digitization on 8th of November, 2016. Elimination of 500 and 1000 rupee notes shook the entire economy of the country and paved way for digital transactions with open doors.
Present situation :-
Since the attack of demonetization by the government has been taken, digital and online transactions have had a steep up-rise in its graph. The rate of digital cash users is increasing exponentially day by day. Mobile transaction applications like PayTM says that there has been a 200% increase in its mobile app downloads in recent times and a 250% increase in their recent transactions. Applications like MobiKwik, Oxigen and UPay also reports the growth of digitization in their statistics after the widespread of demonetization.
The plan of using the Aadhar card details as a key or the pincode for monetary transactions has been going on. The Aadhaar enabled payment system (AEPS) uses the biometrics of an individual, like the fingerprints, as a personal identification number instead of passwords and pincodes for transactions. This system will also serve the security purposes as the biometric of an individual is unique.
India has showcased a massive progress on going cashless in a very small amount of time. The Digital Evolution Index 2017, which is a joint study conducted by the Fletcher School at Tufts University with Mastercard has categorized India under the “break out” segment among the top 60 countries worldwide for going cashless.
In spite of all these achievements, a security threat remains all over the system. Cyber bullies and hackers have not left behind a single scope to invade databases of banks or companies or personal accounts and emails of politicians, businessmen, journalists and other prominent people for personal fetishes. According to the 2015 data breaches study by IBM and the Ponemon Institute, India is the most targeted country for data breaches. Be it the big, famous brands like IBM, Hitachi or renowned banks like ICICI and HDFC, they all faced cyber attacks.
With the abundant availability of higher denomination notes, cash transactions are increasing again.
Steps taken by Indian Government :-
Demonetization is the biggest and the most effective step taken so far by the Indian government towards digitization. The dumping of 500 and 1000 notes has triggered the wealth of black money holders massively. Though the economy country-wide has dropped, the black money and big-fat illegal cash transactions have also been minimized greatly.
New portals for online digital transactions have been opened on a wide-scale, encouraging more customers or users of cash to dump the old techniques and go cashless.
For better security reasons and backing up the after-effects of demonetization, the Ministry of Electronics and Information Technology will be issuing a Request For Proposal (RFP) to set up a common e-governance platform for end-to-end transactional experience for a citizen, businesses as well as internal government functions.
What still needs to be done:-
The government must propose more secure and tight algorithms to stop the intervention of cyber attacks on top security databases for big companies, governments and systems, as well as on personal accounts for the public.
Apart from the digital security, the public also needs to be aware of cyber threats and phishing that take place on a daily basis. Falling as a prey for cyber attacks can be a nightmare for the common people, as well as the big industries and governments. People who do not know much about handling money in a digital way can be fooled easily by asking for their account details or lending information over fake calls, all in the name of digitization. Thus, it is of primary importance that the public is aware of such misleading.
The security departments of every system must be well equipped with behavior analytics and pattern analysis to identify suspicious activities and prevent them then and there. Identification of frauds and fake apps which serve monetary transactions has to be the main motive of the security departments.
Best practices worldwide :-
A worldwide digital payment system and a cryptocurrency, which is the first decentralized digital currency is the Bitcoin. This system works without a central repository or a single administrator. The transactions here, are verified by network nodes, and takes place between users directly and the record is kept in a public distributed ledger.
Mobile applications like PayTM, for instance, is certified under the Payment Card Industry Data Security Standard (PCI DSS) 2.0 certification, which is the current industry security standard set by American Express, Visa International, MasterCard Worldwide and a few other international dealers. This is an essential certification for companies that store credit card information. PayTM and other such companies also use 128-bit encryption technology to crypt any information transfer between two systems.
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