Hello all
In the past one year after corona one of the most discussed topic is bitcoin
today bitcoin is at $57,000 converting that to INR - its 40,00,000
total value of bitcoin is at $1 trillion.
I have been tracking the price of bitcoin for the past six months if you would have invested INR 10,000 in October it would be INR 60,000 - whooping 500% increase. why is it increasing , what is bitcoin and whats the risk surrounding it Lets check in this video

Bitcoin is Virtual Currency/Gold or Digital Currency. We all know what Currency is in the past we used to have barter system where we sell goods/service for a goods/service and then we started using gold to transact for goods but at one point of time, since people can carry gold
and for security reasons the govt started keeping them in reserve and printed money for it and started using it. Later the govt realized that printing money equivalent to gold is not going to be enough and started printing it
as per thr wish and need.
But as the saying goes, there will be no value if there is too much of anything same is applicable to currency as well it started depreciating in value
Looking at all this issue and trying to solve some of them a Japanese man created bitcoin in 2008. Bitcoin unlike our regular currency and gold you cant see it or feel it. To be more prices, if I have 4 bitcoin and my friend has 4 bitcoin each of us will be given an address say address 1 and 2
and it will be stored as address 1 and 2 has 4 coin in each that's all bitcoin is. so the name goes virtual currency/gold.

When you want to transfer money, you have to have a third party like visa or master card to transfer the money for you and you need to pay service charge for it. But bit coin is peer to peer you don't need a 3rd party here.

Next question many of you will have is about the security. Each address with bitcoin will be given a key without which you cannot access the bitcoin
if I lose my key that money is gone for ever.

Also in banking system ledger is centralized and all transactions are
recorded in the that single ledger and you will not have access to it
but here is the decentralized. if there are 5000 or 10,000 members in the bitcoin network, all of them will have the ledger. so its not easy for one person to update one of the ledger.

And if a transaction is initiated, that transaction should be validated by one of the person in the network validation is not that simple. he has to solve a complex math's problem. which cannot be done by our regular laptop. All the members in the network will try that individually. Once resolved, it will be communicated to the others in the network to review them.
After that each of their ledger will be updated.

This is the blockchain, its not easy to understand at single go.
Watch it one more time and you will understand it better.

Finally, there is limited amount of bitcoin. today its 18,000,000+ and the max can be just 21,000,000. Bitcoin are created by solving that complex math problem each time and added to the ledger with that person's address who solved the math problem. That's how it reached this number today and once it reaches 21 million it will be frozen.

That is seen as one of the reason for the price rise. People with money will start investing in other avenues and they see bitcoin as one good place hoping that will rule in the future. Hence huge demand and automatic price rice.

Even though I mentioned about the positive side, I should also mention the risk. There is no regulation behind bitcoin. It can drop to any level even to 0, but there is no one to control it. All our currencies are backed by central bank and government. Next - what's the underlying asset to determine the value of bitcoin. finally unlike physical gold you can realize your bitcoin at any point.

With the all things said about bitcoin, you can invest in bitcoin knowing that you have risk of losing all money. So invest knowing the risk.