Bitcoin is a cryptocurrency discovered in 2008. The currency started building up in 2009 when its application was unveiled. Bitcoin is a suburbanized electronic currency without a central bank or single executive that can be transmitted from consumers to consumers on the companion-to-companion communication without any agents need. Contracts are certified by web nodes through cryptography and inscribed in contemporize digital data. It can be traded for other money, goods, and services, but the coins bona-fide worth is tremendously unstable. These cryptocurrencies have a different prices as well as protocols, but the core principles are almost similar. E.g., Supply is limited. No institution or any rich investor can ever decide the value of a bitcoin. The bitcoin price is completely depends upon market forces, i.e., the interaction between demand and supply forces. If demand rises, price too rises and vice-versa. The only reason these cryptocurrencies are decentralized is just because of trust.
Tired of this dichotomy, an anonymous techie under the pseudonym Satoshi Nakamoto published an 8-page paper by removing middlemen from financial transactions. Bitcoin isn’t an ordinary physical coin, and it is a network of computers that maintain all transactions information. All over the world, there are almost 47,000 nodes where this digital ledger is maintained and updated.
Cryptocurrencies don’t report their data to the government because of being decentralized. Due to this, crypto is used in criminal activities. Cryptocurrencies are anonymous, so tracking down them is a difficult task, and that’s why it is used for illegal tasks. Plus, people invest in Bitcoin to evade taxes and hide black money. Bitcoin comes at the top of the risk pyramid, which creates a dilemma for safe investors. If one plans to invest in any form of Cryptocurrencies, it should be done to keep in mind the risk factors and the benefits it offers. One can lose tons if the value decreases or make a lot of profit if luck favors.