bWhen Bitcoin was first introduced to the world in 2009, nobody thought much of it. It is a virtual currency invented by someone called Satoshi Nakamoto; he/she was not a famous person and remains a mystery to date. However, crypto currency became a thing and people started to consider it as a feasible option for transactions. Bitcoin, initially worth a few dollars, reached its peak in the second half of 2017. One unit of Bitcoin equaled around $20,000, and everyone went ballistic to get their hands on it.
Following the year 2017, Bitcoin’s value has constantly fluctuated and only remained below $10,000. People who invested in the crypto currency at full bloom are disappointed, as the outcome has defied corporate law. Currently, it lacks major capital inflows and the development graph has flattened out. Crypto currency analysts still have faith in Bitcoin, and believe it needs more time to mature and overcome the volatility.
Technology giants including Apple and Twitter are showing interest in this crypto currency, and see a lot of potential in it. Compared to 2018, the price of Bitcoin has slightly elevated, so there stands hope. The chief executive of Twitter and Square, Jack Dorsey has huge plans for incorporating the virtual currency in future projects. Recently, Dorsey revealed that he would be taking Bitcoin to Africa, and its population of 1.2 billion. Other technology giants like Mark Zuckerberg are also working on their personal forms of crypto currency, and extending it to the developing world.
Bitcoin vs. Conventional Currency
Conventional currencies like dollars, euros, and pounds are closer to our comfort zone. Although transactions/money transfers in the modern society are largely electronic, the physical form of traditional currency remains in the background. Many underdeveloped countries of the world still largely depend on ‘real’ money to make payments, mainly due to lack of certified banking services.
Unlike orthodox banking, Bitcoin is decentralized, i.e. a single authority does not control it. It is an open source network maintained by volunteering coders from all parts of the globe. Many people support crypto currency for its freedom; government institutions or Federal law has no hold over ‘digital money’.
New Bitcoins are not released like traditional currency, which can easily be produced and manipulated by centralized banks. An underlying algorithm controls the Bitcoin, so supply is limited. Therefore, stock of crypto currency will not naturally adjust with high demands. When demand exceeds supply, the value of Bitcoin will logically increase. The hiked prices will prove beneficial to the currency owners by converting it into a rare asset.
Bitcoin transactions are transparent, but do not require an identity check like bank transactions. The person transferring crypto currency and the person receiving it can remain anonymous. In addition, it is impossible to reverse a transaction once made. The characteristics imply that Bitcoin is hard to tamper with, which makes it highly secure. On the other hand, it also makes it a viable means of exchanging money in criminal dealings.
Unlike real money, Bitcoin can be broken into hundreds of millions of segments, which makes it perfect for micro transactions.