Everything about the powerful bitcoin ; Decentralized Currency
Bitcoin is a new trending decentralized currency that was created in 2008 by an unknown person using the alias Satoshi Nakamoto who is still unknown to the world. Transactions are made with no middle involvement – meaning, no banks are there! Bitcoin can be used to book hotels on Expedia, shop for furniture on Overstock around and buy Xbox games etc. But much of the hype is about getting rich by trading it all around the world now. The price of bitcoin skyrocketed into the thousands dollar in 2017 and continuously rising.
Each and every Bitcoin transaction that’s ever been made exists on a public ledger accessible to each and everyone worldwide, making transactions hard to reverse and difficult to fake at all. That’s by design: Core to their decentralized nature, Bitcoins isn’t backed by the government or any issuing institution, and there’s nothing to guarantee their value besides the proof baked in the heart of the system, giving it more firm trust that’s why people are investing so much into it.
Since its launch in public domain in 2009, Bitcoin has risen dramatically in value. Although it once sold for under $150 per coin, as of March 1, 2021, one Bitcoin now sells for almost $50,000 and value is still increasing. While the wild volatility might produce great headlines in public, it hardly makes Bitcoin the best choice for new investors or people looking for a stable store of value.
Bitcoins can be used to buy merchandise anonymously that make it more mysterious. In addition, international payments are easy and cheap because bitcoins are not tied to any country boundation or subject to regulation of taxes. Small businesses may like them because there are no credit card fees for bitcoins. Some people just buy bitcoins as an investment, hoping that they’ll go up in value in future soon.
Buying bitcoins /Buy on an Exchange
Many marketplaces called “bitcoin exchanges” allow people to buy or sell bitcoins using different currencies worldwide. Coinbase is a leading exchange, followed by Bitstamp and Bitfinex. But security can be a concern: bitcoins worth tens of millions of dollars were stolen from Bitfinex when it was hacked in 2016 easily.
Bitcoins are stored in a “digital wallet,” which exists either in the cloud or on a user’s computer. The wallet is a kind of virtual bank account that allows users to send or receive bitcoins direct, pay for goods or save their money. Unlike bank accounts, bitcoin wallets are not insured by the FDIC or any other agency.
Wallet on computer: You can accidentally delete them. Viruses could destroy them.
The anonymity of bitcoin
Though each bitcoin transaction is recorded in a public log, names of buyers and sellers are never revealed – only their wallet IDs is visible. While that keeps the bitcoin users’ transactions private only, it also lets them buy or sell anything without easily tracing it back to them. That’s why it has become the currency of choice for people online buying drugs or other illicit activities now.
Bitcoin’s future in question
No one knows what will become of bitcoin. It is mostly unregulated, but some countries like Japan, China and Australia have begun weighing regulations to control its flow now. Governments are concerned about taxation and their lack of control over the currency of the country.