IS BITCOIN A CONTROVERSIAL SUBJECT?
Some of the technologies have installed power that can bring about an entire new twist to the market and “Bitcoin” is not lagging behind. Now what are bitcoins? Why are they viral on the internet? How are they used? These are some of the questions people have on their mind.
Bitcoin was created in 2008 by Satoshi Nakamoto and was registered on August 18, but the first transaction was made on January 21, 2019. It was bought as a currency and traded for the first time on October 16, 2010. It is said that Bitcoin has increased its value approximately by 120% in the early period of 2016, by the middle of the year it had doubled to $720. It had a credible incline with $200 per month, where market capitalization exceeded $15 billion. By the year 2017, it reached up to $4500 and is growing rapidly, gaining prominence.
BITCOIN IN A NUTSHELL:
Fundamentally, bitcoins have their existence from the past few years, but now they seem to interest people more than before. Bitcoins are a typical form of digital currencies on the internet. These are generated by the pedantic software that does mathematical computations and are policed by computer users termed as ‘miners’. This digital public money is more like a standard form of dollars, yen, euros, which aren’t printed but can be traded digitally.
Bitcoins are otherwise also labeled as the ‘cryptocurrency’. This virtual banking currency is produced and held electronically, which are transformed into long strings of code that have monetary value.The electronic currencies are decentralised and are not controlled by anyone, that makes it distinct from other currencies.
As they are not controlled by single institutions or large banks, bitcoins put people at ease to trade and buy things electronically.
HOW DOES IT WORK?
There are various reasons why Bitcoins are so popular now. Bitcoins can be best put across as valuable virtual coins that do not require banks to store or move the money. In the wild west, bitcoins are viewed as 'gold nuggets’. It is said that they act as physical gold coins once you own them, as they possess some value and can be traded easily as if they are nuggets of gold in your pocket.
The digital currency can be put to use by buying goods and services online or can be traded electronically. You are also provided with an option to store them until their value is anticipated to increase over the coming years.
Bitcoins are usually traded from one’s personal 'wallet’. A wallet here refers to a personal database that can be stored on the drive, tablets, smartphones or some place in the cloud. Bitcoins are designed to be forgery-resistant. If the created bitcoin is computationally-intensive, it isn't financially worth it for counterfeiters to tackle the system.