Former England cricketer Kevin Pietersen is getting closer to joining the Bitcoin revolution as he is busy learning the concept of cryptocurrency. A few days back, Kevin Pietersen had sought help from his Twitter followers to understand the overall concept of cryptocurrency. Now, the former English cricketer has shared that he is getting closer to understanding the pathbreaking blockchain-powered technology, and also listed four ‘bitcoin rules’.

Kevin Pietersen’s four Bitcoin rules

Kevin Pieterson on Tuesday took to his Twitter handle and expressed his gratitude to his followers and shared that the four Bitcoin rules he has understood i.e.

  • Hold for minimum 4 years
  • Decade strategy best
  • Ignore all price fluctuations
  • Keep stacking. 

As Bitcoins prices are continuously fluctuating depending upon the market, Pietersen tried to explain that holding the Bitcoin for a minimum of 4 years irrespective of the market trends and following the decade strategy i.e. where the Bitcoin market will go in the next 10 years, will be optimum. 

What is bitcoin and how does it work?

Bitcoin is the first-ever decentralised digital currency introduced in 2009 as an alternative to the current financial system’s loopholes. In simple words, Bitcoin is a type of money that is completely virtual. It’s like the digital version of cash. You can use it to buy products and services, but not many shops accept Bitcoin yet and some countries have banned it altogether. Each Bitcoin is basically a computer file that is stored in your digital wallet app on your smartphone or computer. You can send Bitcoins to your digital wallets or to other people. Notably, every single transaction you make gets recorded in a public ledger which is the basic principle of blockchain. The blockchain process enables to trace the history of Bitcoins to stop people from spending coins they do not own, making copies, or undoing transactions.

Bitcoins can be bought using real money or you can sell your goods and ask for the payments in the form of Bitcoins. Bitcoins can be created using a computer, but for that, you need to make your computer process transactions for everybody. People set up powerful computers in order to get Bitcoins and this process is called mining. 

What is Cryptocurrency?

A cryptocurrency is basically one of many distributed currencies that are increasingly being traded and used as payments online for goods and services. Many companies have issued their own currencies, often called tokens or coins. Cryptocurrencies work using a technology called blockchain. Blockchain is a decentralised technology spread across many computers that manage and record transactions and the ‘problem solving’ that is involved in this task leads to ‘rewards’ that is the issuance of coins or tokens that have value on principles of demand, supply and sentiment.

Cryptocurrency is becoming popular all around the world day by day. As a long-term investment option, mode of payment, and trading, cryptocurrencies are witnessing a rise in interest. Many companies have also started to recognise crypto coins such as Bitcoins as a substitute for money. However, their tenability remains under the scanner. India’s RBI had attempted to de-recognise cryptocurrencies but this decision was revoked by the Supreme Court. Meanwhile, China on May 18 announced that country’s financial institutions and payment companies are banned from providing any services related to cryptocurrency transactions and has even warned the investors against speculative crypto trading.

(Image Credits: AP/Unsplash)

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