All you need to know about BITCOIN

All you need to know about BITCOIN

All you need to know about BITCOIN: Bitcoin is a trendy topic and questions on the same can be asked in your upcoming exams. For your efficient preparation, OnlineTyari has formulated an article which will help you update your knowledge regarding Bitcoins.

This article will also contain mixed questions on the trending Bitcoin topic. Scroll down to update your knowledge.


Everything you need to know about BITCOIN

What is Bitcoin? A Bitcoin is a type of digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank. In simpler words, it is a type of digital currency where transactions are made with no middlemen – meaning, no banks.

Who invented Bitcoin? Bitcoin is a virtual currency was invented by an unidentified programmer under the name of Satoshi Nakamoto. It was introduced in 2008 to a cryptography mailing list and released as open-source software in 2009. It is the largest of its kind in terms of total market value. Bitcoin uses two cryptographic keys, one public (username) and one private (password) are generated.

Where are Bitcoins stored? Bitcoins are stored in digital wallets or e-wallets. These wallets are basically client software installed on computers, mobile phones or other devices. A person can access his digital wallet by typing a unique public address like “Hhfot2191u4810fjkljfk99849” and transfer bitcoins to another person’s digital wallet.

How can I get Bitcoins?

  • Bitcoins are hidden in data blocks spread across the internet. These data blocks are created by the inventer. Bitcoins can be mined by solving these data blocks. This process is called Mining.
  • If you don’t know how to mine bitcoins, you can buy them from a person or company who has already mined the data blocks.
  • One can also get bitcoins by providing goods or services to person/company who already has bitcoins.

Can I copy Bitcoins?

You cannot copy a bitcoin. It is not a file nor an object. It is a simple code associated with an address.

What are the advantages of Bitcoins?

  • No transaction costs
  • No Tracking
  • Your Bitcoin cannot be stolen
  • No hidden charges
  • Easily be converted into currency

What are the disadvantages of Bitcoins?

  • It can be Hacked, damaged by malware.
  • If you lost your password lost. All the money will be lost.
  • No central bank has authorized it.
  • No trade through BSE, NSE, commodity exchange (SEBI, FMC)
  • No Forex dealer under FEMA converting Bitcoin.


Gk/ Computer Questions on Bitcoins

These questions will help you prepare efficiently for the upcoming examination. Update your knowledge now:

Q1 Who invented Bitcoin? Satoshi Nakamoto

Q2 What is the name of the first academic paper that described bitcoin? The Bitcoin Whitepaper

Q3 What is the name of the bitcoin exchange (Japan) that collapsed in 2014? Mt Gox 

Q4 How many bitcoin will ever be created? 21 Million

Q5 Name two countries that have banned their banks from servicing bitcoin companies? China & Russia

Q6 What is the name of the general ledger that tracks all bitcoin transactions? Block Chains

Q7 How many new bitcoins are created each day? 3600 Bitcoins

Q8 The computers that process transactions for the bitcoin network are commonly called? Miners

Q9 Bitcoin is protected by encryption. The form of encryption used is called? Sha256

Q10 What is the fastest time you can send or receive payment in bitcoin without verification? Immediately

So, here we are summing our article on “Bitcoins” Topic. We hope these questions will not only update your knowledge but also increase your score in the upcoming examinations.

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