BitCoin - New Gold or Just a Phasec
BitCoins have steered an epoch of future financial uprising as a cryptocurrency. BitCoin is a type of digital currency, which is produced and saved electronically. This is because of the outburst in the cryptocurrency market over the past few years. BitCoins are produced by people by solving a complex algorithm and the process is known as ‘Mining BitCoin’. They are decentralised currency as its network is not controlled by any single institution.
BitCoins were first heard to exist during the Economic and Financial Collapse of US Market. At that time, an Inventor and software developer, known as Legend Satoshi Nakamoto published a paper about BitCoin for peer to peer payment.
How BitCoin is becoming popular
In modern times, technology has greatly affected human lives. One of the ways in which technology has become important in our lives is the way we do business and exchange currencies. Among all these changes from online banking to payment wallets, the cryptocurrency has proved to be a popular option and BitCoin has been most used cryptocurrency.
The approval of this new electronic currency is because of its distinguished features like decentralized nature, easy setup, anonymity, transparency, minimum transaction fee, extensive applications, better hedging instrument and so on.
The BitCoin network is not controlled by any one central authority. Each machine that mines BitCoin and creates transactions is a part of the bigger network. All these machines are connected to each other and work together. This characteristic keeps the currency safe against bad monetary policy and avoids a total breakdown.
How to get started
Creating a BitCoin account is as creating an email address. There are no fees involved while creating a BitCoin account. Another main feature that differentiates BitCoin is that a user can have multiple accounts and no personal information is ever involved in all these transactions, hence creating a completely anonymous transaction.
How Bitcoin is changing the perception of a currency
Being anonymous does not mean that there is no record of the transactions. BitCoin saves information of every single transaction ever occurred in its network, titled as the block chain. The block chain is known as a public ledger of all BitCoin transactions. Transactions are confirmed on a peer-to-peer network between computers running BitCoin and avert duplicate transactions or counterfeit. The block chain is the back bone of BitCoin network and is responsible for keeping BitCoin transparent, distributed and safe. The best part is that Block chain eliminates the necessity for a third-party.
How it can change the future
As and when people are getting more aware of this cryptocurrency, various governments like US, UK, Australia and even the UN are thinking of using BitCoin in many government initiatives. BitCoins are also used as hedging instruments against volatile economic changes, where the value of traditional currencies can degrade at any moment. The fact that there are ATMs installed nowadays for BitCoins only proves its wide acceptance and popularity among people. This popularity will make most retailers and other businesses towards accepting BitCoin in future. Many developed nations where payment systems that enable immediate person-to-person payment are not available; they will soon like to adopt BitCoin. The general awareness about BitCoins will also increase with its increasing acceptance in the businesses. As stated earlier, BitCoin has many advantages and for all those reasons it will remain significant as a currency. Only future can tell whether BitCoin will be the new gold in coming times or it will phase gradually.
© 2017 Sonal
