We have been using money as medium of exchange for quiet a while almost 2000BC.. Ok that's more than a while, and in the way the way we see money has changed it's form like from coins to paper notes and it's changing it's shape again wit the help of computers..
With the introduction of Bitcoin in 2009. Bitcoin is in a way similar to the money you have in your pocket and has no intrinsic value, it is just bits of data just like the regular money is just piece of paper. but is is different in other way the regular money we use is stored in bank and to exchange of that money or transfer that money we use credit cards and debit cards but in Bitcoin there is no community or bank holding all the coins it can directly be transfer form one person to another..Like Gold(Au) and Silver(Ag).
Also like Gold(Au) and Silver(Ag) and unlike the regular money you can't just print or some Bitcoins they have to be found and process is called "Mining" again like Gold And Silver.
Mining
To mine a Bitcoin there are mathematical problems in the way users or miners solve these problems with high-end computer parts and after solving that problem you get Bitcoin or Bitcoins in reward and with each problem being solved the next one becomes more difficult. Miners confirm all the transactions so more Miners means more security and they do all that work so they can get the transaction fee.
In early stage of Bitcoin users used their computer's processor to solve the mathematical problems but later they learned that Graphics cards are more fast in mining but they used a lot of power and created a lot of heat and then the ASIC (Application- Specific Integrated Circuit chips) are designed specificly for Bitcoin mining they are faster and use less energy.
Anybody can become a Miner by running a software with high-end hardware but with more miners joining the network it gets hard to mine for Bitcoins so Miners work in pools and the Bitcoins they earn are divided into Miners depending on the amount of work they have done.
A total of 21Million of Bitcoin can be found and over 12Million are founded but after finding all the 21Million Like Gold(Au) once we run out of it we can't dig for more and they theory is Bitcoins will become more expensive are they become more rare.
and just like you can divide 1Dollar into Cents you can divide Bitcoin into 8 decimal points. like 0.00000001
Security
You can loose Bitcoins just like you can loose you wallet full of money but when you loose regular money thjere is a chance you can find it back. this is not the case with Bitcoins one you loose a wallet full of bit coins you can't find it back those Bitcoins are gone forever. and in some countries like China you cannot exchange Bitcoins for their currency ..But the Govt. of America is Bitcoin friendly..
And you can see a lot of places in U.S the that accepts Bitcoins as money.
And you can see a lot of places in U.S the that accepts Bitcoins as money.
currently 1 Bitcoin = 449.3USD =27,010INR
Bitcoin has it's ups and downs and it'll take time for the whole worlds to know and get used to Bitcoin and it'll take time for Bicoin to be more secure but i don't think that it can completely replace the money we use today.
Peace...
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