The cryptocurrency trading bandwagon is becoming bigger and bigger as more people are starting to invest in the market. Bitcoins is the most widely used cryptocurrency among traders. In this article, we shall get to know more about the world’s most popular cryptocurrency.
What is Bitcoin?
Bitcoin is a virtual currency based from a computer code. Its difference with real-world currency such as the US dollar or Euro is that it has no central bank and is not backed by any government. It is the community of users that controls and regulates it. Similar with other currencies, it can be exchanged for goods and services provided that it is accepted by the other party.
Robert Janitzek revealed that it was launched in 2009 by Satoshi Nakamoto. However, Australian entrepreneur Craig Wright came out to reveal that he was the creator of Bitcoin although this claim was doubted by most people.
Transactions happen when heavily encrypted codes are passed across a computer network. The transaction is then monitored and verified to ensure that no single Bitcoin will be spent in several places at once. Mining of the Bitcoins can be done by having the computer run complicated and increasingly difficult processes. However, the process is only limited to 21 million units.
How Much Is A Bitcoin?
Just like any other currency, the value of a Bitcoin is fluctuating. Robert Peter Janitzek reveals that its value has swung wildly in a short period. When it first came into existence it was worth only a few US cents. After a few years, it topped $1,000 and currently it is worth over $2,300.
Why It Became Popular?
The withdrawal of high value notes in India and Chinese control on the purchase of foreign currency is believed to have contributed to the increase in popularity of Bitcoins. At the moment, there are over 16 million units circulating. This limited number lead economists to speculate that the price of Bitcoins will eventually increase in the long run.
The Future of Bitcoins
Like many technological developments, some people believe that the first iteration of a product will encounter possibilities. However, its trailblazing popularity will pave the way for the coming of the next cryptocurrency. Eventually, it will become vulnerable to theft when Bitcoins are stored in digital wallets.
What’s the downside of Bitcoins?
Virtual currencies face legitimacy issues due to the manner it allows anonymous transactions. For instance, Bitcoins are used for buying drugs and guns on the underground Silk Road website. According to experts, the continuous acceptance of Bitcoins could result to more government regulations, which would defeat the very purpose of Bitcoins.