Bitcoin has been around for almost past ten years but it particularly rose to fame during the end of 2017 and the beginning of 2018. This is due to the sudden surge in the value of Bitcoin that was witnessed during this period. It was such a hit that people globally started taking immense interest in this cryptocurrency, whether they used in it for the transaction or not. Know all about this epic form of digital currency below.
Bitcoin Meaning and its Emergence
Bitcoin emerged in 2009 as open-source software. Its inventor or inventors are unknown.
Bitcoin is the first cryptocurrency based on blockchain technology.
Cryptocurrency is a digital currency that uses a security technology known as cryptography which makes it difficult to imitate.
Bitcoins, like most of the cryptocurrencies, work on the decentralized systems that are backed by blockchain technology. Decentralized meaning these currencies are not issued by central banks of any country or any administrator and the transactions take place without any intermediaries.
The value of Bitcoin in terms of dollars has gone up and down many times since its invention. In 2011, 1 Bitcoin was worth $0.30 which later achieved the highest value of $31.50 in the same year. But it was in 2017, the value of this cryptocurrency spiked up like never seen before. This is when it achieved immense attention globally.
Prices in 2017 started at a $998 per Bitcoin and went on to reach an exquisite amount of $19,666 as of December 17, 2017. This is considered an all-time high price. As of January 1, 2018, its value slightly reduced and stood at $13,412.44.
Transactions using Bitcoins
In its simplest form Bitcoin transaction is the interchange of digital information which enables you to buy and sell services, products and also exchange the currencies. You can also play Latest slots games using the Bitcoins on online casinos.
While sending the Bitcoins, the sender adds his coded encrypted signature of 16 distinct symbols which after being received by the receiver is decoded on their device to avail the cryptocurrency.
Advantages of Bitcoins
- The exchange happens through a Bitcoin network which enables the peer-to-peer transaction. There is no middleman involved, hence no transaction fees or such.
- The transactions are transparent where there is no scope of hidden charges or corruption.
- The decentralized system of Bitcoins enables you to control your funds without interference from country’s government and laws.
- Many businesses transactions are now taking place through Bitcoins which are backed by billion-dollar companies. This expands the opportunity for users to use their Bitcoins for various transactions.
- The transactions occur quickly and securely throughout globally.
Drawbacks of Bitcoins
- There are chances of your account being hacked leading to theft of your Bitcoins.
- There are chances of increase in abhorrent activities such as tax evasion, money laundering, illegal businesses and such.
Every product comes with its own set of advantages and drawbacks. People being cautious of its drawbacks should take complete advantage of it while it’s still thriving.