Bitcoin and transactions

Bitcoin and transactions

The digital currency called 'Bitcoin' is being widely discussed. The main reason for this is the rise in the record amount of currency.

Experts warn, but people are leaning towards it. Sometimes hackers are demanding money by hacking a computer and paying for, claims made through 'Bitcoin'. Moreover, unlawful use of this centrally controlled currency, illegal and immoral, can cause global economic depression at any time. So, its rush should be taken immediately. In addition to being the most careful in this regard, one needs to be aware of the view of the Shariah.

The word Bitcoin means small currency, symbolic currency, digital or virtual currency.

Courtesy: www.coindesk.com

It is called 'Bitcoin' because it is made up of small pieces of computer information. Bitcoin is also called cryptocurrency, the invisible or secret currency.

Because it does not have any value of its own like other conventional currencies and its entity, size or existence is not visible. Rather, it is a virtual token that is created as a medium of exchange for a special process.

So it does not require any storage, pocket or wallet for carrying or storing it; Rather, they are stored in different wallets.

Making process:

Money is made on a printing machine.

As the government approves and controls it, it creates purchasing power. But the process of making 'Bitcoin' is completely different. Ahsan H Mansur, executive director and economist at the Policy Research Institute, said that it is programmed on the Internet system to a certain extent, which can be purchased if desired.

This is a coin that is not issued by any central bank or country.

In fact, the whole process of making Bitcoin is done online through an open software. The server on which the transaction is secured is called a miner. Miners make 'Bitcoin' through mining. New 'Bitcoin' is generated as a transaction is completed.

Bitcoin transactions are made from customer to customer.

In our country, in different department stores or supershops including 'SOPNO', buyers are given a specific point based on the purchase price. Let's say, the point is a virtual token. The buyer can purchase a product against that point after reaching the specified amount. In other words, this point has been accepted as a kind of currency or a medium of exchange. Bitcoin Concept is very similar or close to it. A point or number, which is earned after mining; It has been given special status as a medium of exchange for the purpose of attracting mining. Depending on demand, its value increases or decreases.

The first 'Bitcoin' voyage began on January 27. A person or group called 'Nakamoto' first introduced 'Bitcoin' using mining methods through blockchain technology.

The media have at times tried to portray different people as the real Satoshi Nakamoto. Nakamoto is considered the first Japanese-American computer scientist to be the first in a series of 25.

Another computer scientist, Hal Finney, was later thought to be the first to trade with Bitcoin. Again, Australian computer scientist Craig Wright has called himself 'the real' Satoshi Nakamoto.

He made this claim in an interview with the BBC, The Economist, GQ. Last included on the list is a billionaire named 'Elon Mask' who is keen on new technologies and ideas.

However, he claimed he was not the 'inventor of bitcoin'. But on hackernoon.com, a blogger named Sahil Gupta, who was formerly SpaceX intern, claimed on November 29 that "Elon Musk was the real Nakamoto" and "very likely" to be the inventor of Bitcoin, based on a very strong argument.

Pricing and Monitoring:

This is a currency that has not been issued by any central bank or state authority.

Using the Internet system, a person or group develops it and sets up a kind of gaming platform. Many people are blindly pursuing it, investing heavily in the hope of becoming a 'finger-swapping banana'. Its biggest weakness is that there is no legitimate central authority to control it.

As a result, if there is any fraud or confusion about it, there is no opportunity to be resolved.

The demand and price of bitcoin are rising endlessly.

In March 2016, the exchange rate of the 1 coins against the dollar was $ 419.75, but earlier this year, the exchange value was $ 14317.86. The price is increasing almost every day. In the last one and a half years, prices have increased almost four times. The price of a Bitcoin in Bangladeshi money is now about Tk 12 lakh. No specific reason for the increase in the exchange rate is known to the users themselves.

However, some governments in the developed world, including the United States, Canada and Japan, are planning to bring this currency under the central control in view of the large volume of revenue generated in these currencies. Meanwhile, the Iranian government initially banned its transactions, but has now declared it legitimate.

Bitcoin and Mining: The word 'mine' means mine. Mining is the process of extracting valuable resources from a mine or mine. He who does mining is called a miner. Since the process of making bitcoin is very much like extracting resources from a mine, those who solicit special algorithms and gain bitcoin are being called miners.

Illegal transactions:

Sender and recipient information is stored anonymously, so it is possible to carry out various types of anti-state and Shariah activities, including smuggling of drugs through Bitcoin, selling illegal weapons, importing/exporting money/taxes/ tariffs. And because of this, the use of Bitcoin has increased alarmingly in addition to legitimate transactions. According to an Australian researcher, the rate of illegal activity in the state via Bitcoin is around 50 percent.

Bangladesh Bank directs:

Bangladesh Bank has already issued a notification warning everyone not to trade in Bitcoin. It states that 'these virtual currencies are not a legal tender issued by the legal authorities of a country and therefore no financial claim is contrary to that.

Author: Senior Research Officer, Central Shariah Board for Islamic Banks of Bangladesh

(Summed up)