Bitcoin, a trending currency, with the passage of time it has grown with its popularity and use. It is an online payment system launched by SantoshiNakamoto in the year 2009.
The term Bitcoin is also referred to as Virtual currency or cryptocurrency. It’s a truly digital currency having no actual tangible representation.
Bitcoin wallet is not controlled or backed up by any administration, nation, or an individual element. They are managed without any regulation from the central government. Therefore, it’s more resistant to corruption and inflation. Bitcoins are very similar to stocks as their value is derived by their usage and demand.
The merits of the whole process!
Now Bitcoins have value and can be exchanged with money, it can be used for payments of goods and services. Bitcoins can be bought using credit cards and some other similar digital payment modes or at local Bitcoin, exchange place either using digital or cash payment mode.
As it’s mentioned above, they are very similar to stocks, the valued exchange rates also go up and down.
Bitcoins use a public ledger known as the blockchain. The Bitcoin protocol is built on the blockchain.
How is the whole process conducted?
The receiver gets to use these coins in minutes of getting them. Once given away there’s no way of having them back unless the receiver decides to return the coins.
Bitcoin has stood firmly in the media for the last two years. Like other innovative ideas, even if it loses relevance, cryptocurrencies have made a point:there are feasible alternatives to back the internet transactions.
To replace the current currency, bitcoins still have to overcome a number of obstacles. In addition to fighting the currency system, they have their own internal challenges namely- we don’t know yet of the blockchain technology can be successfully adapted for high volume transactions.
In the far future, global and democratically cryptocurrencies have the potential to replace the government’s fiat money.