Understanding Bitcoin, Litecoin & Other Cryptocurrencies- GK Notes for SSC, IBPS & Railways in PDF

GK Notes for SSC, IBPS & Railway in PDF

GK Notes for SSC, IBPS & Railway in PDF- Gk notes for banking, ssc, IBPS and railways exams PDF with details of bitcoin, litecoin and other virtual currencies

Understanding Bitcoin, Litecoin & Other Cryptocurrencies- GK Notes for SSC, IBPS & Railways in PDF

GK Notes for SSC, IBPS & Railway in PDF- We all search for references like “sports current affairs pdf 2017”, “current affairs PDF”, etc. for competitive exam preparation. When you appear in exams like SSC, IBPS, railways, etc., you will find questions from a section called financial awareness. In this section, the questions asked may mostly revolve around ongoing highlights to gauge your financial awareness. Have you heard of the terms Bitcoin, Litecoin, etc.? You might have heard it if you are interested in concepts like virtual reality/ virtual gaming. Bitcoin and Litecoin are types of virtual currency. Now, you might be wondering about the term “virtual currency”, let us find out:

Cryptocurrency or Virtual Currency: The Concept

Virtual currency is an electronic currency which acts as an alternative currency used and accepted among the members of a specific virtual community. Virtual currency is also known as digital currency or cryptocurrency. It is neither government-funded nor backed by national currency. Bitcoin was the first cryptocurrency which could arrest the attention & imagination of many.

Why Virtual Currency?

Virtual currencies not only limit you to the online world, but also allows you to make transactions with real good and services.

Bitcoin- Invention, Highlights, Pros & Cons

“Bitcoin will do to banks what email did to the postal industry” – Rick Falkvinge, Founder of the Swedish pirate party

Bitcoin is the first virtual currency which enables you to make instant payments in less than a cent per transaction! Created on an open source encryption pool, Bitcoins have evolved as the largest online cryptocurrency lately. New bitcoins are created through mining, where people run softwares which compete to solve computational puzzles. Some of the important highlights are-

  • Bitcoin is peer-to-peer technology which doesn’t operate with banks or central authority.
  • The network takes care of maintenance of transactions and issue of bitcoins.
  • It is an open source technology and no body has a control over it.
  • People who wish to have it can join the networks.
  • It is a digital currency which can be used to make payments without paying any fee for the transaction.
  • Bitcoins run on the blockchain, which is a decentralized ledger.
  • This ledger is updated periodically & is held by all users in the network.

How to Generate Bitcoins?

  1. If you wish to create bitcoins, you have to generate blocks on the network.
  2. A block is cryptographically created by using the computing power of its users and then added to the blockchain.
  3. Users can earn by keeping the network running.

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Who invented Bitcoin?

Satoshi Nakamoto, an avid and cryptic internet user invented Bitcoin, invented bitcoin and introduced in for the first time in the year 2009.

Bitcoins- Pros & Cons

There are pros & cons associated with every single thing of the universe. Let us find out the pros & cons associated with bitcoins

Pros:

  • No need of physical money
  • No intervention of government and banks
  • Ease of transactions
  • Privacy factor

Cons:

  • Technical glitches
  • Vulnerable to malicious/ fraud attacks

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Litecoin- Overview & Highlights

Litecoin, like that of Bitcoin, is also a peer-to-peer digital currency. Litecoin also allows you to make payments. The major difference is that Litecoins can be mined faster as compared to bitecoins. Litecoins are also generated through mining, & generate blocks every 2.5 minutes on average (which is four times Bitcoin’s rate)

Features of litecoin

  • Litecoin was invented by Charlie Lee.
  • As compared to bitcoin, litecoin has more number of coins that can be created. Moreover, litecoin has faster transaction rates as compared to bitcoin.
  •  Litecoin’s incorporates an algorithm which allows 84 million Litecoins to be created. The capacity of Litecoin’s is 4x larger than Bitcoin which helps with 4 times faster transaction.
  • Confirming transactions help create new coins through a process called ‘Mining’.

Other Types of Cryptocurrencies

Some of the other types of virtual currencies are as following-

  • Ethereum
  • Zcash
  • Dash
  • Ripple
  • Monero

We, in our upcoming posts, will keep posting about these types as well.

GK Notes for SSC, IBPS & Railway in PDF- Some latest updates on Bitcoin & Litecoin-

Given below are some of the latest updates on Bitcoin & Litecoin:

  • Bitcoin’s price skyrocketed from approx. $600 to close to $5,000 in just 12 months
  • The hackers of WannaCry Ransomeware had asked ransom as Bitcoin!
  • In recent news, Litecoin has secured the 4th position in the Cryptocurrency business. It has beaten IOTA & Ripple.
  • The top three popular cryptocurrencies are: Bitcoin, Ethereum & Bitcoin cash.
  • Litecoin is stepping up its game with the market capitalisation of Rs 0.88 lakh crore recently.

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Wasn’t it interesting to read about Understanding Bitcoin, Litecoin & Other Cryptocurrencies? If yes, stay tuned with us for such updates of GK Notes for SSC, IBPS & Railway in PDF.

All the best!

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