Bitcoin has been making news for quite a long time, but there are still many people unaware of this cryptocurrency. What is Bitcoin? What are its benefits? Could it be the future of online currency? These are some of the questions frequently asked about this digital currency.
What is Bitcoin?
Bitcoin is an electronic currency which is autonomous from all traditional banking systems. Bitcoin came into circulation in 2009. Presently, Bitcoin is one of the best known digital currencies which relies on computer networks. Bitcoin is the first decentralized cryptocurrency; users can send it through internet anytime and from any place. The creator of Bitcoin is Satoshi Nakamoto and very little is known about him. But his creation is known throughout the world.
The Bitcoin exchange rate is completely independent of a central bank, and no government or single authority is governing the supply of digital currency. The price of Bitcoin depends heavily on the level of confidence of its users. Over time, major companies around the world started accepting Bitcoin as a mode of payment, something that will make Bitcoin more popular in days to come.
Benefits of Bitcoin
Lately, Bitcoin has become immensely popular and all credit goes to its features and benefits. Here are some of the advantages of Bitcoin:
- One of the most important features about Bitcoin is its low inflation risk. Most traditional currencies around the world suffer from inflation, and with time it tends to lose its purchasing power which is not the case with Bitcoin.
- Digital currency doesn’t suffer from low inflation, the reason being it’s mining is limited to 21 million whole coins. Over time, the release of new Bitcoins is slowing down and the remaining amount will be mined in the next couple of decades. According to experts, the last Bitcoin is predicted to be mined by 2050.
- Unlike traditional currencies, Bitcoin has a low risk of collapse. Bitcoin is one concept which is not relying on governments to make it safe and secure. Currency collapse leads to the wipeout of personal savings or even hyperinflation.
- Governments do not regulate Bitcoin exchange rates; this currency is available all around the globe.
- Bitcoin is online currency which makes it easy to carry. Users can store billions of dollars in one memory stick and carry it in their pocket. Compared to paper money, Bitcoins are easy to transport.
However, there is one disadvantage with Bitcoin – it is highly volatile and untraceable by nature. Organizations and governments can’t trace the source of funds, one feature which makes it an ideal target for unscrupulous individuals.
Making money with Bitcoins
Bitcoin can be used to make money. Unlike all other traditional currencies, Bitcoin gives you the option to make money by saving, mining and trading. On open markets, you can trade Bitcoin, which means enthusiasts can buy or sell Bitcoin based on its price fluctuations.
How is the world experiencing Bitcoin?
In past few years, the popularity of Bitcoin seems to keep reaching new heights. More and more businesses in different sectors have started accepting Bitcoins. Enthusiasts are using it for buying products and services both online and offline. In most cases, digital currencies are used by consumers for electronic transactions and online shopping purposes. Many top brands and companies have begun accepting Bitcoin as a method of payment, enticing more digital currency payments.
Future of Bitcoin
The concept of Bitcoin is undoubtedly unique, and it is creating a buzz all around the globe. However, critics have a different opinion. Some believe that these digital currencies are not yet ready for mainstream use due to its volatility. There were some cases of hacking resulting in loss of a few million dollars – one negative point associated with this concept.
Supporters of Bitcoin seem to be quite excited about this new idea, and they are expecting it to replace traditional currencies in the days to come. Many experts are confident and hopeful that this virtual currency system comes with return on investment and its growth is predicted to be huge.
Bitcoin is becoming popular and has reached every corner of the globe at a rapid pace. This new currency system comes with huge potential and in the days to come it can put up a tough fight against traditional currencies. Are you prepared to take this giant leap and invest in Bitcoin?