What is Bitcoin?
The Internet has made bitcoin very common and popular across the world. The world is slowly becoming a small village where different distant operations can be done as if you were close to one another. The internet has made many things to change especially on the digital world. When we talk about digital currency, just as the name suggests it is purely virtual and you can’t touch but can feel the value and the benefits. This is exactly what we mean when we talk about bitcoin and its benefits. Bitcoin is a digital currency that is accepted by different countries and stakeholders either in the service industry or selling of products as a mode of payment. Its operation is purely online and can only be done upon agreement by different parties. Just like any other currency in the world you can use your bitcoin to trade for different goods and services where bitcoin is accepted.
source: arstechnica.com
Bitcoin can either loss value of gain value against different currencies. It began as a small idea just for a few businesses and stakeholders and because of the internet, it is now all over. Bitcoin in its nature has no central body that regulates it and so the trading using bitcoin is done via trusted sites with trusted clients. These sites are configured to give the real-time update of the bitcoin value against any currency in the world. You are free to create an account and buy bitcoins either to use for other business or invest in it and wait for the value to increase then you sell again.
How and where does Bitcoin work?
Now the cryptocurrency is being used almost in every part of the world. It has massive benefits and the quick gain of the value of bitcoins has been its main popular factor. It is pretty much a concept that is gaining its ground amongst individuals and businesses today. The concept can be a bit complicated, leaving a lot of people confused as to what it really means and how it works, and not surprisingly so. Now bitcoin has gained ground and acceptance and now is the most popular currency in the world of cryptocurrency.
source: coindesk.com
The Origin of Bitcoin
All things that exist and we use daily must have a source and now it is important to understand the origin of bitcoin and how it came into existence. Bitcoin was created in 2008 by a pseudonymous software developer named Satoshi Nakamoto. With a noble idea to set transactions without physically coming together led to the existence of bitcoin. The idea was for there to be a mutual transfer of funds electronically between two parties that could be verifiable and not controlled by a central authority.
It has remained a currency that is not easy to understand how reconciliations are done especially after the transactions are done. The process of mining bitcoin can be very energy intensive as well as electricity consumption. The miners try to ascertain the proof of work by discovering the signature for the blockchain. It involves a lot of computational processes usually done by experts in the field. Since the process of mining bitcoin can be daunting and very rigorous, many people just prefer to buy it. This usually involves creating an account with a major bitcoin exchanger and connecting a bank account or credit card to be able to transfer funds to the seller.
Img source: independent.co.uk
Future of Bitcoin
With the numbers of businesses and merchants now coming to terms with the digital currency, it is now becoming more popular. Many of the individuals and businesses who did not trust bitcoin today accept bitcoin as a mode of payment for services rendered. It is now preferred over most of the local currencies because it can gain value overnight and hence more profitable. Just like gold, the value of bitcoin in the market fluctuates almost on after every 2-5 minutes.
Keeping it in your wallet until a time when the value would be incredibly high might pay off so much, but then it is solely based on probability. The truth is, there’s been a lot of interest in bitcoin attracting so many people across the world. According to bitcoinloophole.io, most people are now using bitcoin as a means of investment and buying more of it to sell in the future. Those with land and even houses are selling them off to invest in bitcoin with hopes that it may gain much value in the future. It is being predicted that a lot of big companies and government might soon make it some form of legal payment method.
