Bitcoin is a digital currency which is generated and managed using advanced encryption technologies which are commonly called cryptography. Bitcoin has come a long way since 2009. Right from being just an academic concept to finally becoming an actual currency (virtual), bitcoin has made a giant leap.
Over the years, Bitcoin has attracted a vast following and significant amount of investors as well as media attention. In 2013, it peaked up at the record of around $266 per bitcoin. At that point, bitcoin spotted a market value of around $2 billion but took a plunge of around 50% in no time. This resulted in a heated debate over bitcoin and cryptocurrencies.
So, the question now arises that will the cryptocurrency become an alternative for traditional currencies like Dollars and Euros? Or will it lose its thunder in a few years?
Keep reading to find the answer.
Let’s Understand What Bitcoin Is?
Bitcoin is a digital currency which is based on peer-to-peer technology. It is entirely decentralized, which means, no financial institution or government body controls it. It allows every function like issuance, transactions and verifications. As mentioned above, it is not centralized; it is entirely free from the manipulation made by other institutes or regulatory bodies. To ensure that everything runs smoothly, it is made very private and not accessible by anyone easily.
The process by which bitcoins are created is known as mining. This procedure requires expertise and robust computer systems as it is done by taking complex mathematics and algorithms into action. Nowadays, they are created at a speed of 25 bitcoins every 10 minutes. The level is expected to go up as time passes.
All the features mentioned above differentiate bitcoin from the regular or traditional currency, which is regulated through manipulations done by the government. Unlike bitcoin, the standard currency is issued by the central authority and supervised by the central bank. Whereas there is no one to look after bitcoin, which is at some point advantage for the user but it has another side too. Because of the lack of supervision, it is always quite prone to hackers and cybercrimes.
Another difference between fiat money and bitcoin transactions is that there is no transaction price charged while paying through bitcoin like it is done while making the payment through gateways or banks for the traditional money. Bitcoin’s value entirely depends on the amount the investors are willing to put in at any given point of time. If the investment is more, the cost goes up, and if the invested rate is low, the value of bitcoin drops. Before you start investing in bitcoins it is important to know more here at revenuesandprofits.com.
What Is The Future Of Bitcoin?
Different analysts predict different things about the future of bitcoin. At the same time, some economic analysts predict that there is going to be a significant change in the market because of the cryptocurrency and it will become the new institutional money while some mention that there are chances that bitcoin will float and be used as an alternative to the regular traditional money that we use currently.
Some say that Bitcoin needs a verified exchange fund as it will make investing much more accessible for people in the future. With a wide variety of opinions, the only sure thing is that bitcoin does have a bright future in the coming days.
However, the future of bitcoin is still a big subject to debate. A lot of market experts are against the process of cryptocurrency because it is associated with overwhelming sentiments of the investors. According to them, bitcoin is somewhat similar to physical gold. Bitcoin’s use is only limited to online transactions, which makes it very vulnerable to fail or collapse in the future.
Other than that, it does not include any government action, which makes it less efficient and unsafe as compared to the systems protected and regulated by the central bank and the government authorities.
Therefore, bitcoin has mixed opinions when it comes to its future.
Bitcoin surely aspired to become a massive part of the standard financial system. However, it will have to pass specific criteria to become a part of it. If it fits in with time, there is a big chance that it may take over the fiat money.
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