Bitcoin (BTC) is one of the fastest growing virtual currencies in the world since it was launched in 2009. Unlike notes and tokens, bitcoins are used to make electronic transfers such as making payments to merchants. Every single transaction is recorded in digital formats known as a blockchain. It works by which tracking the time the transaction was made and who the current possessor is at the moment. You see, blockchain will record both present and past transactions thanks to miners.
Currently, the presence of other cryptocurrencies has not hindered Bitcoin (BTC) from maintaining its top spot. By 2017, one Bitcoin was valued at$10,000 and this has set a new mark in the blockchain market.
Its existence since 2009 has seen the rise in value for a currency not controlled by the central bank. Obviously, it has raised a lot of eyebrows and investors are left to wonder if the risk is worth taking. Pioneer investors have higher expectations of being millionaires in the near future.
Understanding what Bitcoin is all about
Back in 2009, Bitcoin was originally founded by an anonymous individual by the names of Satoshi Nakamoto. This form of virtual currency is used to make payment for goods without incurring hidden charges from the bank or the government. In 2017 alone, firms such as Microsoft, Virgin Airlines, WordPress and Subway had already started using it as a form of payment.
How it works
Currencies such as Dollar and Sterling pound is controlled by central bank. Bitcoins on the other hand, relies on the ‘proof of work’ from miners. The coins only multiply when they are mined; a process that involves conversion of incomplete bitcoin transactions into mathematical equations. The first miner to find the answer to the equation gets an automatic authority to create a new bitcoin after linking the chains together in a block hence the name ‘Blockchain’.
By June 1, 2017, a total of 16,366,275 million bitcoins had already been created. Their target for 2140 is to hit the 21 million mark.
The value of bitcoins
A single bitcoin is standing at a value of $14,100. After the launch in 2009, it grew to $153 in April 2013. 2017 marked the year when it shot up to $1000 and doubling up in the months of May and August.
Various financial institutions have embraced it as a legal tender owing to this outstanding performance. Now, watchdogs are cutting off irregularities on the cryptocurrency and recognizing in the world stock exchange.
How do I acquire Bitcoin?
As a potential investor, you can acquire a hardware wallet through various online platforms to protect you from hackers. These wallets are designed to store, encrypt and organize your files using private keys only you can access. It enables you to purchase a bitcoin using any form of currency. To get you started, you need to approach a legit broker who impose different charges. Alternatively, you can still mine it directly using a state-of-art hardware.
A special website known as Bittybot illustrates approved brokers and their current ratings. International investors may find it difficult transacting since it takes much of their time. Unlike bitcoin, Stellar, Ethereum and Litecoin can execute transactions in a matter of seconds. In fact more of these coins are recognized as legal currencies in various countries that have outlawed bitcoin.
If you are selling something, you can accept bitcoin as a form of payment. Another way is through Bitcoin exchanges which are found online.
How is Bitcoin performing at the moment?
Just like any other currency, rates offered for Bitcoins keeps fluctuating hence no fixed charges. For starters, when bitcoins changes ownership from the buyer to the seller both of whom quote their rates according to the prevailing situation. Normally, the seller will quote a reasonable price to the buyer according to the current ratings offered in other places.
Over the past few months, numerous reports have indicated unavoidable fluctuations in their values. This has facilitated Bitcoin code divided into two different forms; One supporting the blokc through Segwit and the other one for enormous blocks of up to 8mb. Essentially, owners of bitcoins before August 1st will reap 10 times.
The future of Bitcoin
Ordinarily, preceding investors are expected to earn millions since it was first launched. In fact, it had already hit a 600% mark in 2017. For this reason, Japan has since recognized it as a legal tender. However, countries such as Russia and China have banned its use since it is linked to the black market. It is not worth taking the risk since it encourages evasion of taxes and fraudulent activities. Chances are, it may not be fully absorbed into the current market now that it bears plenty of risks and other coins such as Eretheum and Stellar will replace it.
Rise in Bitcoin can be compared to gold from notes which is not recognized by banks and other financial. Also, it was founded by someone who wants to remain anonymous. Some argue that it could have attracted a wider chain of hackers who made away with $31million on November 21, 2017. Its close link with black market that does not recognize hidden fees could also lead to vices such as human trafficking, money laundering, cyber security risks and drug peddling.
In India, it is not easy to exchange Bitcoins for Rupees since they are not freely convertible. This hindrance makes it difficult for users to liquidate bitcoins. Essentially, the future where Bitcoins is concerned is not very definite. With super powers such as Japan legalizing Bitcoin, it will be quite difficult for other governments to do away with it now that other virtual currencies are being introduced.