What is Bitcoin
Bitcoin is a digital and global money system currency. It allows people to send or receive money across the internet, even to someone they don't know or don't trust. Money can be exchanged without being linked to a real identity. The mathematical field of cryptography is the basis for Bitcoin's security.
Bitcoin was invented by someone using the name Satoshi Nakamoto. A Bitcoin address, or simply address, is an identifier of 26-35 letters and numbers, beginning with the number 1 or 3, that represents a possible destination for a bitcoin payment. Addresses can be generated at no cost by any user of Bitcoin.

How Does Bitcoin Work?
Each Bitcoin is basically a computer file which is stored in a 'digital wallet' app on a smartphone or computer.
People can send Bitcoins (or part of one) to your digital wallet, and you can send Bitcoins to other people.
Every single transaction is recorded in a public list called the blockchain.
This makes it possible to trace the history of Bitcoins to stop people from spending coins they do not own, making copies or undo-ing transactions.

Why are Bitcoins valuable?
There are lots of things other than money which we consider valuable like gold and diamonds. The Aztecs used cocoa beans as money!
Bitcoins are valuable because people are willing to exchange them for real goods and services, and even cash.

Why do people want Bitcoins?
Some people like the fact that Bitcoin is not controlled by the government or banks.
People can also spend their Bitcoins fairly anonymously. Although all transactions are recorded, nobody would know which 'account number' was yours unless you told them.

Is it secure?
Every transaction is recorded publicly so it's very difficult to copy Bitcoins, make fake ones or spend ones you don't own.
It is possible to lose your Bitcoin wallet or delete your Bitcoins and lose them forever. There have also been thefts from websites that let you store your Bitcoins remotely.
The value of Bitcoins has gone up and down over the years since it was created in 2009 and some people don't think it's safe to turn your 'real' money into Bitcoins.

How are new Bitcoins created?
In order for the Bitcoin system to work, people can make their computer process transactions for everybody.
The computers are made to work out incredibly difficult sums. Occasionally they are rewarded with a Bitcoin for the owner to keep.
People set up powerful computers just to try and get Bitcoins. This is called mining.
But the sums are becoming more and more difficult to stop too many Bitcoins being generated.
If you started mining now it could be years before you got a single Bitcoin.
You could end up spending more money on electricity for your computer than the Bitcoin would be worth.

Why are Bitcoins Valuable?
Why do Bitcoins have value? Bitcoin offers an efficient means of transferring money over the internet and is controlled by a decentralized network with a transparent set of rules, thus presenting an alternative to central bank-controlled fiat money.

Is Bitcoin legal?

To the best of our knowledge, Bitcoin is not be made illegal by legislation in most jurisdictions. However, some jurisdictions (such as Argentina and Russia) severely restrict or ban foreign currencies. Other jurisdictions (such as Thailand) may limit the licensing of certain entities such as Bitcoin exchanges.
Regulators from various jurisdictions are taking steps to provide individuals and businesses with rules on how to integrate this new technology with the formal, regulated financial system. For example, the Financial Crimes Enforcement Network (FinCEN), a bureau in the United States Treasury Department, issued non-binding guidance on how it characterizes certain activities involving virtual currencies.
Bitcoins in India had only started to gain momentum when a banking ban in 2018 by the Reserve Bank of India (RBI) cooled off the sentiment.

Advantages Of Bitcoin –
  • Hidden identity: One of the biggest advantage of Bitcoin technology is securities against cyber-theft is the ability to keep oneself under camouflage. With bitcoin technology, you would be able to keep your identity hidden. Since transactions or accounts under bitcoin technology have nothing to do with real-world identities, one can only analyze the flow of the transaction. It wouldn’t be possible to find the real-world identities of anybody. You would receive or send bitcoins to addresses that are just the chains of 30 characters.
  • No gatekeepers: To use the banking system, you have many gatekeepers who would prevent you from making the transaction. Under bitcoin technology, you would have to take responsibility on your own. There would be no gatekeepers and anybody with the open software can receive or send bitcoins.
  • More secured: Another advantage of bitcoin technology is that It’s almost impossible to hack your account under bitcoin. Bitcoin funds are securely locked under a cryptography system. If you’re the owner of a private key, only you can send crypto-currency i.e. bitcoins. Since it is made by using solid cryptography and huge numbers, it’s impossible to hack the address.
  • Swift and global: One more advantage of bitcoin technology is that it is super fast. Once the transaction is initiated, it is propagated instantly to the global network; and the transaction would be confirmed within a couple of minutes. And since it is done with a wide global network, the physical location of the owner doesn’t count. You can send bitcoins to your relatives nearby or to a friend abroad using this technology. So these are some of the main advantages of Bitcoin technology.

What are the disadvantages of Bitcoin?

·         Degree of acceptance - Many people are still unaware of Bitcoin. Every day, more businesses accept bitcoins because they want the advantages of doing so, but the list remains small and still needs to grow in order to benefit from network effects.
·         Volatility - The total value of bitcoins in circulation and the number of businesses using Bitcoin are still very small compared to what they could be. Therefore, relatively small events, trades, or business activities can significantly affect the price. In theory, this volatility will decrease as Bitcoin markets and the technology matures. Never before has the world seen a start-up currency, so it is truly difficult (and exciting) to imagine how it will play out.
·         Ongoing development - Bitcoin software is still in beta with many incomplete features in active development. New tools, features, and services are being developed to make Bitcoin more secure and accessible to the masses. Some of these are still not ready for everyone. Most Bitcoin businesses are new and still offer no insurance. In general, Bitcoin is still in the process of maturing.

Conclusion
The invention of Bitcoin is only the beginning. Some people are using Bitcoin and other cryptocurrencies instead of banks, but it still hasn’t completely replaced banks. What are your thoughts? Do you think that Bitcoin will replace banks? Or does it need to improve first?