What is bitcoin ?

What  is bitcoin ?

 wondering why i'm shopping so much hey folks see ya randy here and i welcome you all to another interesting video on cryptocurrencies i'm sure many of you might have seen this chart on how bitcoin has performed in the past few months just after looking at this amazing

  Moment there are so many people who believe that a meravi purchased a double hoga don't go behind this first learn once you are clear with the concepts then only decide whether you're going to invest or not a very very very important disclaimer you can see so many comments which try to impersonate me try to impersonate my channel and they will ask you to follow them for Some advice some numbers will also be given in these comments and they will ask you to follow them on some telegram channel or instagram channel or on any other platform please be 100 sure that i don't give advice on any sort of cryptocurrencies on any sort of stocks also for that matter i don't have an advisory please ensure that don't you don't Fall for all these fraudsters so let's understand what is the meaning of cryptocurrency in the most simplified manner so cryptocurrency is divided into two parts one is cryptography and one is currency first let's try to understand what is cryptography cryptography is associated with the process of converting ordinary plain text into unintelligible text and vice versa Unintelligible matlab which can't be understood so it is the process of converting plain text into text which can't be easily understood okay it is a method of storing and transmitting data in a particular form so that only those for whom it is intended can read and process it okay see the moment when you read this that it is it is done in a particular Way so that only that person to whom it is intended can read and understand it remember the movie razi in which aliyah bhatt used to make certain noises like this okay from pakistan and then in india there is a person who is listening to this voice and then he understands oh she's communicating this to me okay now anyone else on earth if he Would have heard that noise he would not have understood that but the sender knows what he means to say and the receiver also knows what he or she needs to understand from it that is actually cryptography okay now let's understand the combined term what is cryptocurrency cryptocurrency in simple words is nothing but digital form of cash okay now let's take this example here we have a Let us say any person a and here we have a is in india and there is one more person b who is from usa now if a wants to send dollars to b in usa can that person directly send dollars no he or she will have to first go to a bank okay then bank is a third party who is involved who will actually convert the rupees into dollars And then verify who is the sender okay who is the receiver okay we'll match certain things we'll charge some money and then transfer the funds to b okay so this transaction was possible only with the help of an intermediary which was the bank here now let's try to understand if there was something like a digital form of currency which knows No barriers okay something like that a currency it's nothing but a digital form of cash right so what could have happened that mr a could have directly sent funds to b without any third party and that is an example of cryptocurrency so what are the advantages no intermediary required number one number two no geographical barrier number three Because there is no intermediary as such charges are also very less who is going to charge what that we are going to cover in the subsequent part of the video but charges are going to be very less and number four it's very fast on an average of course different cryptocurrencies will have different timings but it ranges as low as four seconds to as as high for popular coins like 10 minutes okay these are the advantages what are the disadvantages then number one disadvantage is that if if a wrong transfer is made okay then this person a cannot ask for the money back why i'll tell you because let us say the account to whom the money was to be transferred was account number six four five and by mistake the person said six five four now he does not know who is six five Four that person does not know who is six five four no one knows who is 654 so once money is gone it can't you can't get it back if it is a wrong transfer this could have happened if bank was there in between because bank knows who is 654 right that is a disadvantage number one and number two because the senders and the receivers identity Is not unveiled unfortunately it is used for a lot of illegal activities through internet which is many times a part of internet which is known as dark web but if you want to know more about this what technology is used behind all these things we are going to cover that in the next part of the video well now let's understand whether cryptocurrency is really legal or illegal there are two different Things one cryptocurrency being legal and one cryptocurrency being allowed as a legal tender in india let's tackle both the problems number one is it legal answer is yes why on 6th april 2018 rbi imposed a banking ban on indian banks to have a relationship with crypto companies but the same banking ban was lifted in 2018 by a supreme court decision and because Of which the indian banks were allowed to have business relationships and banking services with an exchange so what's the conclusion trading in cryptocurrencies as on date is absolutely legal then what is the problem problem is that cryptocurrency is still an illegal tender of money means what tomorrow if i want to go to a shop and buy a refrigerator i go to the shop i tell the shopkeeper okay give me this Refrigerator and i'll say that okay i'll give you bit some xyz amount of bitcoins in return or xyz or some other cryptocurrency in return is that allowed no it's not a legal tender i will have to pay in inr i'll have to pay indian rupees but then you will say but illegal no wait you can compare it with something like this even if i go to the Same shop i tell that okay pack that fridge for me and i say i don't have rupees right now do one thing i'll give you 10 reliance industry stocks in return is that allowed no because even stocks are not a legal tender i hope you have understood the difference between cryptocurrency being legal and cryptocurrency not being allowed as a legal tender in india Now let's try and understand what is a blockchain in simple words blockchain is nothing but comprised of two words and one is block and another one is chain right now what's a block block is nothing but a database which stores a lot of information what kind of information now let's take the original example that a was sending some cryptocurrency to b okay now what will that block store Block will store information like who is the sender who is the receiver when was the money sent and so much more information will be stored in that block right now one more transaction takes place let's say x sends another cryptocurrency to y now again that information will be stored in this block that who sent to whom at what player whatever then m sends to N a sends to x whatever so much information goes on filling in this block okay now this block is full another block comes into picture okay but when this block starts it will point out to the last transaction actually there are concepts like hash rate or hashing we are not going to go into details of that let's try and understand the essence of what is a blockchain right so the second Block basically will just point out to the last transaction there that we are carrying forward we are continuing basically from here right again this block will start filling up with a lot of information correct once this block is filled let's say now the third block starts but third block will also again point out to the last transaction of the second block now all these blocks will be Linked will be will be uh you know tied together with the help of a chain and that is why this is called as a block chain now the big question if i were to delete the data from one of the blocks is that possible no why because a third block was pointing out to the end of the second block if that second block goes away it will be clearly understood that something is missing so this cannot Happen and that is why it is said that blockchain is immutable now let's try and understand what is bitcoin well bitcoin is nothing but a type of cryptocurrency bitcoin was founded in 2008 and it was launched in 2009 by mr satoshi nakamoto like i am sure no one knows who binod is similarly no one knows who mr satoshi nakamoto is well what is the advantage i'll tell you I can just compare it something like this that we have promoters for a company similarly the promoter of this bitcoin is like mr satoshi nakamoto now i can imagine that if something happens to the promoter of the company then what will happen to the share prices of that company they want to go down drastically similarly if something happens to mr satoshi then what But we don't know whether he's alive or not also so that danger is anyways away right today bitcoin is one of the most popular coins among the cryptocurrency spaces all over the world wondering how a bitcoin looks like that's how it looks like okay i'll just show it to you one minute oh well it can't be held physically in your hand why it's a digital currency Well i hope you have understood what is bitcoin very nicely now one or two more fun facts about bitcoin what do you think how is the supply of indian rupee is it limited or unlimited correct answer is it's unlimited whenever government wants it can print more and more indian rupees what about bitcoins is the supply limited or unlimited the supply is limited there are exactly 21 million bitcoin All over the world okay but out of that in circulation there are 18.6 million approximately bitcoins which are in circulation right now now let us move on with how a bitcoin transaction actually takes place right so let us say our old example where a transfers bitcoins to b that's where a new transaction will be entered Now what happens this transaction will have to be verified by someone like you remember the bank example if a sends money to b then there'll be a bank in between that bank will verify this transaction but in bitcoins in crypto do we have any intermediary no no intermediaries there then who will verify this transaction now you can imagine there are thousands of people all over the world Who are there who are wanting to verify this transaction these people are called as miners okay now what happens is that whenever a person sends bitcoin to b no one will say that in plain english that will be written in some cryptic language okay now you can imagine this is like some mathematical problem which someone can see something like that okay now these miners who are all Over the world thousands of people who are all over the world they will try to solve this maths problem okay when this now big question how will they solve this using pen and paper no using a normal laptop no all these are very like very high pow very powerful computers that they'll require super computers very high computing power computers will be Required to actually solve these mathematical problems now once they solve this problem what will happen is they will have to come get something in return as a reward that is where we say that they are mining the bitcoin okay so in simple words someone is verifying the transaction or free of cost okay some reward will have to be given to that person at that reward Is in the nature of giving him more bitcoins but these bitcoins are mined no one will transfer bitcoin to them as such right now the big question should one invest or not wait first you have to understand how volatile bitcoin has been in the past and also in the present just to give you a few stats in december 2017 it had touched the then high around 19 000 for one Bitcoin then it went down and down and down entered into a bear market and it touched a low of almost 4 000 dollars per bitcoin in march 2020 and since then like stocks have rallied like anything even bitcoin rallied a long way to believe it or not roughly 42 000 per bitcoin currently as i am shooting the video The bitcoin is trading around 36 000 for one bitcoin so i hope by now you might have understood that it is a very volatile cryptocurrency now the big question that are you are you spelling it properly are you saying it properly 36 000 for one bitcoin how on earth will i be able to invest even for one bitcoin it is possible wait you you need not buy One bitcoin can you buy it in fractions yes so for example can you buy 0.1 share of reliance industries no you can't but can you buy 0.1 bitcoin answer is yes so buying infractions is allowed okay wait but then the big question is that whether i should buy uh bitcoin or ethereum or any other cryptocurrency for that matter out of all this Which should i choose i think that like i say in stock market don't go for small caps go for large caps which are comparatively known which have a proven track record similarly if i'm talking about cryptocurrencies bitcoin is a cryptocurrency which has the largest market cap and alone bitcoin has more than 65 percent of the total market Capitalization of all cryptocurrencies put together but then if you ask me my personal opinion i would want to invest a small amount of money which i always call as a party fund uh that will depend on everyone's risk appetite so for me it can be 5000 rupees for you it can be 10 000 for someone else it could be 500 rupees also so that depends on how much risk you are Ready to take that can be a small amount with which you may start your journey in investing in cryptocurrencies i would like to thank coin dcx for helping me to make this video about cryptocurrencies if you are in india and if you want to invest in cryptocurrencies then you can surely check out their app which is coin dcx go by coin dcx which is india's largest and Safest cryptocurrency exchange well if you want to still learn more about cryptocurrencies they have a free learning platform which is dcx learn if you are a beginner in cryptocurrencies and if you want to try then you can surely check out their app which is coin dcx go app which makes investing easy quick and seamless using indian rupees To download the coin dcx go app follow the link in the print comment and if you're a pro then you can surely check out coin dcx which is helpful for investing in more complicated products like margin trading futures contracts lending staking etc well few key features of coin dcx app are instant order settlement high liquidity low risk why because you can start investing with As low as 10 rupees and you can start depositing with as low as 100 rupees it's kyc is fast and safe because it is ai enabled it has multiple layers of security to ensure fund safety and it is also backed by bitgo custodian now the grand finale question where do you store these cryptocurrencies possibility number one you can store it with the exchange wherein you can also earn some interest on that Possibility number two you can store them in hardware wallets they look something like this like a pen drive but this is password protected there's an amazing fun fact that there is a us programmer who has actually forgotten his password to his hardware wallet and he has only two attempts left to access his 300 million dollar bitcoin fortune i hope you have understood and enjoyed This small session on cryptocurrencies if you have liked it don't forget to share it with your friends if you want to learn more from me do let me know in the comment section till then take care jai hin and bye [Music] you