Bitcoins: Future or failure?
Bitcoins has recently become the talk of the town. Some are inquisitive to know as of how it would affect the current financial system while the crypto enthusiast has already begun with trading and exchange. Currently, the digital currency is giving tough competition to traditional currency system.
Whether Bitcoin would be the future or failure will depend on many factors such as security standards, compliance, profit margins, processing fee etc. Some of the nations are spreading awareness so that people can adapt quickly to new digital era while others are discouraging due its uncertainty.
Here are ten interesting features on Bitcoins that every beginner needs to know:
- Bitcoin Foundation: Bitcoins came into existence in 2009 by Satoshi Nakamoto. He invented a new way of peer-to-peer currency transfer without involving an intermediary. Later he stepped back and handed over the responsibility to Gavin Andresen.
- Decentralized: Bitcoin is the first decentralized cryptocurrency, which doesn’t follow any government regulations or norms. The currency is mined by a user or a developer using high-end equipment such as GPU (Graphical Processing Unit) or ASIC (Application Specific Integrated circuit).
- Online currency: Once the Bitcoins are mined, they circulate only on the cloud. Every Bitcoin user has an address and a private key, which is used to send and receive currency. Bitcoin cannot be withdrawn in the form of physical currency.
- Blockchain technology: Bitcoin transactions are traced through a public ledger called blockchain. Every transaction is referred to a Block and every user has a node. Every new transaction is added to the previous one; thus, forming a chain. These ledgers are public to avoid any double spending. Whenever a new transaction occurs it gets published to other nodes in the Bitcoin community with the specified details of the amount.
- Bitcoin Mining: Bitcoin mining is a process by which new bitcoins are released into the system. It also verifies the transaction before an addition is made to the blockchain. An individual can mine the bitcoins personally with specific hardware. A miner can also join a group where the resources are provided by an organization.
- Bitcoin exchange platforms: There are several Bitcoin exchange platforms that allow the user to process the transactions at a very minimum processing fee. Some of the well-known exchanges are Bitstamp, Cryptomate, HitBTC, and Korbit etc.
- Bitcoin trading & Exchange: Digital or crypto enthusiast can enjoy trading in Bitcoin market as the fluctuation rate is pretty high. Various trading tools can be used such as real-time pricing through graphs, 24-hour trading volume etc. before making any investment. Bitcoins can also be exchanged with USD, EUR, and KWN etc.
- Bitcoin acceptance: Bitcoin has been accepted in several nations such as US, UK and many countries in Asia-pacific but there are some regions where Bitcoin couldn’t leave a great impact such as Zimbabwe, Brazil etc. Some of the e-commerce business websites and few of the corporate firms use Bitcoins as their main payment system.
- Bitcoin Limit: While creating the market of Bitcoin, a limit was set on its circulation. Only 21 million Bitcoins can be mined and circulated in the Bitcoin community. So far 16,366,275 Bitcoins have already been mined.
- Bitcoin Wallet: A Bitcoin wallet holds the digital currency and has a collection of two keys i.e. public and private key. These keys are cryptographed and can be referred to as digital signatures to approve a transaction.
Thus, Bitcoins transactions are instant with no geography bound restrictions. Though there are still concerns when it comes to security parameters and risk of currency volatility.
- Sristhi Sahu