Bitcoin
12.01.2024
Bitcoin , Daily Current Affairs , RACE IAS : Best IAS Coaching in Lucknow
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For Prelims: About Bit coin, Key Point, Advantages, Disadvantages |
Why in the news?
Recently, US regulators for the first time approved exchange-traded funds that invest directly in Bitcoin.
Key Point
- This move is heralded as a landmark event for the roughly $1.7 trillion digital-asset sector that will broaden access to the largest crypto currency on Wall Street and beyond.
About Bitcoin:-
- Bitcoin is a type of digital currency that enables instant payments to anyone.
- Bitcoin was introduced in 2009.
- Bitcoin is based on an open-source protocol and is not issued by any central authority.
- The origin of Bitcoin is unclear, as is who founded it.
- A person, or a group of people, who went by the identity of Satoshi Nakamoto are said to have conceptualized an accounting system in the aftermath of the 2008 financial crisis.
- Bitcoin is the first decentralized digital currency.
- Bitcoins are digital coins you can send through the Internet.
- Bitcoins are transferred directly from person to person via the net without going through a bank or clearinghouse.
Advantages:-
- Low transaction cost.
- Lack of interference from the banking system.
- Lower Entry Barriers.
Disadvantages:-
- Assets are not backed by tangible entities such as land.
- Wastes computer power.
- Enables crime.
- Encourages anarchy.
Source: Business line