Bitcoin, Cryptocurrency and Blockchain: All You Need To Know
Since the past decade, no other financial product has generated as much buzz as hype as Bitcoin has. Cryptocurrencies and Blockchain technology have transformed the financial markets of the world in a big way.
Bitcoin first burst out into the scene in 2009. Someone who uses the pen name, Satoshi Nakamoto, introduced it to the world. By using complex computational powers, people are able to generate Bitcoins as digital currencies.
Bitcoins and digital currencies are different from traditional currencies. They are not subjected to the global trends of the financial markets. This helps them be independent of fluctuations and volatility.
However, this is not to say that they are not volatile themselves. Even after ten years, Bitcoin is considered to be very much new and much is still not known about the currency. In this article, we will look at Bitcoins and Blockchains. We will also talk about their impact for the future of the world.
Advantages of Bitcoin as a Digital Currency
One of the biggest advantages of Bitcoin or cryptocurrencies is the fact that they are independent of governments and financial institutions. This means that their supply, demand or availability is dictated purely by the markets and not by government manipulations of fixing.
Some of the strongest proponents of Bitcoin state that the digital currency is truly democratic in the right manner. In traditional currencies, the money has to go through several channels, each with its own processing fees and surveillance.
When it comes to Bitcoin, almost all this is eliminated, making the transactions, faster, more secure and inexpensive. You do not have to lower currency amounts when trading between countries or continents. This means that all transactions can take place in a pan-global kind of a way.
The decentralization of Bitcoins means that no particular government or financial institution has control over it. This does not mean that Bitcoin is limitless. A fixed quantity of Bitcoins can be there- 21 Million Coins. However, it can be divided as many times as possible, making the entire financial ecosystem of Bitcoin limitless.
Blockchains: Data Storage and Seamless Transactions
When Bitcoin first emerged, it used Blockchain technology to ensure the right ownership, transactions and financial safety associated with using Bitcoins as a form of currency. Almost all cryptocurrencies use some form of Blockchain technology to conduct their businesses.
In simple terms, Blockchain works as a software system that records, tracks and assesses the flow of information, especially financial transactions across multiple points. The best part about Blockchain technology is that no one user can change the data across the operations. It is visible to all the parties concerned.
This ensures trust, faith, and better understanding of doing business. In the past couple of years, Blockchain technology has come out of the shadows of cryptocurrencies and set itself in diverse business operations, most notably in supply and demand; logistics based operations.
Two words that many commentators use when it comes to Blockchains are ‘Distribution’ and ‘Decentralization’. These two words together ensure that there is no one entity or authority, which controls the entire transaction.
Are Crypto Currencies the Future of the Financial World?
Even though Bitcoin, Ethereum and Litecoin are worth several billion dollars in terms of their valuations, they are still baked with suspense, speculations and manipulations. International governments and financial bodies are working over-time to discredit them as they pose a huge threat to traditional finance.
The entire process is too technical for a common human being to understand. This is something that is preventing cryptocurrency from reaching the masses. Once it is able to establish a stronghold, it will start posing a serious threat to the world of traditional finance.
Bitcoin Profit 2 and other cryptocurrencies have dedicated trading platforms and apps, which have come to the rescue of people wanting to know more about them, and even start trading with something as low as $250 USD.
Even though the future looks bright for crypto currencies, it would be safe to say that there is still a long way to go.