Everything You Need To Know About Bitcoin and its Recent Boom (Info)
“There are times when you need to do an online transaction. You have to make a payment, which can be done through numerous ways, such as Credit/Debit Card, PayPal (which by the way is not available in Pakistan) etcetera”
Wouldn’t it be great to have a virtual currency that’s solely for the internet. Sounds good!!! That’s where Bitcoin came into play.
Bitcoin is a digital currency and it has a system of its own. Unlike real currency it is decentralized cryptocurrency, it is based on peer to peer (P2P) system. Which means payment made using bitcoin are direct and without any person/agency being involved in the middle.
Users have a Digital “wallet” in which their bitcoins are stored, which is used to send and receive Bitcoin payments.
Where do they originate and who takes care of the transactions? It’s the bitcoin generation community. The particular term for such users is “miners”. These Miners uses a computer program to solve mathematical problems to verify various transactions around the world, and as a reward, these users get (generated) more Bitcoins.
But the generation is based on a predefined algorithm, and the amount is predictable and limited.
According to an estimate, this limit will be achieved in 2140, and then bitcoins will not be generated any further.
Bitcoins are divisible to 8 decimal places, so a single coin is broken down into several smaller units. The amount of bitcoins that you own is denoted by BTC.
Who created Bitcoin
Bitcoin was introduced on 31 October 2008, in Research paper by the shadowy person known as Satoshi Nakamoto and from then onward the world was in search for the person who developed this cryptocurrency. People with the similar name were bothered by the media all the time.
But then in May 2016 an Australian computer scientist and businessman came into mainstream media and reveal his identity. As the brain behind Bitcoin. He claims to be the real person behind the pseudonym Satoshi Nakamoto—the creator of bitcoin—
Advantages of Bitcoin
Bicoin has many advantages over the physical currency, including the fact that it is unaffected by inflation. It is highly invulnerable to theft
(unless someone physically knows your wallets password).
Thanks to cryptography every user’s Bitcoin wallet is secure and someone cannot just hack into your wallet and steal your bitcoins.
Despite all these advantages and differences, BTC transactions works pretty much like real cash.
Disadvantages of Bitcoin
If you forgot your wallet’s password, it cannot be recovered. It means you have lost all your bitcoins.
You cannot reversed a transactions, it means that If you send a someone some bitcoins for a product/any other item, you cannot reversed that transaction nor can they repeat charge you and force money to be taken out.
Bitcoin have no set value, that means if one bitcoin = $70 today and from out of no-where it can be of $10 tomorrow.
But despite all this, there are mixed views on whether BTC can be consider as a safe currency or not. And despite it being called Digital Gold, there are still doubts whether it will yield as much profit as you would expect, if your are looking into the trading aspect of bitcoin.
Although BTC is a decentralized currency and exists only on the web, it is definitely putting an impact on the real world as well. That’s the power of digital world, better not to underestimate it!