The Rise Of Virtual Currencies
Before Digital Currencies
Throughout history empires, governments and organizations have controlled the monetary system. They determine the prices of products and services, enable transactions, take care of conversions and control transfer of currency from one person to another. Therefore this complete autonomy in effect imposes numerous restrictions on individuals and organizations while transferring funds for purposes that the government or organization doesn’t approve. Such restrictions have had both beneficial and drastic consequences for organizations. Moreover, financial institutions charge additional fees for transfer and conversion of currency that further devalues currency prices.
The Invention Of Bitcoin
Until the invention of Bitcoin, there was no method or process by which individuals and organizations could bypass financial institutions and governments to transfer funds, unless of course they sent and received hard cash from each other. Bitcoin is the first ever digital decentralized crypto currency that is significantly changing the way people, organizations and countries transact financially. It is designed as a peer to peer pseudonymous currency that uses advanced elliptic curve algorithms and cryptography to secure transactions and make them publicly viewable through an online ledger.
The above description spawns a number of questions like: What exactly is Bitcoin? Can we get it from the banks by paying the exchange rate? How can we carry out transactions with Bitcoin? What are the advantages and disadvantages of using Bitcoin over other currencies? What is the future of Bitcoin? Are there any other such digital currencies? How do Bitcoin work? Where do I store it? How can I secure it from thieves? And a number of other related question. This books aims to provide a comprehensive explanation about Bitcoin so that even a beginner can start using the virtual currencies.
Invention Of Bitcoin
After The Success Of Bitcoin
Following the success of Bitcoin, a number of other virtual currencies sprung into existence but only a few have managed to maintain a steady growth. Bitcoin is the most successful digital currency in use today. Its immense growth has affected economies in ways even expert economists are not able to comprehend. But the common man has no idea about the drawbacks of the current monetary system. Except for economic experts and financial giants, very less people understand the negative impact of centralized currencies.
Therefore the creators have Bitcoin have designed the system to be easily understandable by every person while each person completely acts like a financial institution and a consumer. The virtual wallet with each user serves as a perfect replacement for the financial institutions and the code itself determines the total valuation of the currency based on demand and supply. Let us dive deeper to understand what exactly is Bitcoin and how each user can easily get started by understanding some fundamental concepts about the system.