What is Bitcoin and why does everyone keep saying that?
Bitcoin is the first digital asset that functions due to the unique technology of blockchain. Bitcoin gives the opportunity not only to transfer money from the recipient to the sender. It performs many other functions, presenting new opportunities to users. The digital asset is based on P2P technology (Peer-to-peer).
What’s it say?
Public authorities and central banks cannot control Bitcoin. All operations in the network are performed collectively by its participants. Accordingly, this helps to control and issue funds. The code of Bitcoin is open, everyone can see who, when and to what extent the operation was done. In this case, everyone has the right to become member of the network.
Thanks to this Bitcoin create new opportunities for users: it is possible to exchange the cryptocurrency for goods or services of sellers who provide such a payment option. Also it can be exchanged for other currencies through special payment systems or exchange services.
Users understand this cryptocurrency as a program that provides access to Bitcoin-wallet. It also provides an opportunity to receive and spend this currency.But in fact, Bitcoin network is based on a blockchain technology, which is also called a “chain of blocks”. The users themselves check each operation. Confirmation occurs by means of an electronic signature, which corresponds to the used addresses in the operation. This allows the users themselves to control Bitcoin transfer between addresses. At the same time, anyone can engage in this activity, it is enough only to acquire computer capacities in the form of special equipment. Such activity was called “mining” (mining is extraction of minerals). Thanks to the blockchain technology, Bitcoin became the first cryptocurrency in the world, that got leading positions in the market.
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Bitcoin like a digital gold
The consensus of experts opinion in the field of cryptocurrency is that Bitcoin should become the main digital currency of the future. There are various opinions as to what Bitcoin is waiting for in the future. Most people use Bitcoin as a speculative tool, and not as a means of settlement, that is, most of the coins are used for accumulation purposes.
A few important facts..
Satoshi Nakamoto, the creator of this currency, in the implementation of his idea tried to imitate scarce gold. Therefore, in the entire history of Bitcoin, only 21 million coins can be issued. And if the reward for the block is reduced to 0.78 BTC, this will contribute to an even greater desire for accumulation among users.
This cryptocurrency was designed on the standard deflationary model. That means that the more coins are stored by users, the greater buying power of Bitcoin becomes.
People perceive Bitcoin as an investment tool, and not as a payment system. They assume that this will make them richer, so the сryptocurrency is gaining momentum, turning into what was planned — Bitcoin becomes a digital version of gold. Bitcoin mining process is similar to the gold mining: the product is just unique and cannot be faked. But Bitcoin is much easier to transfer and store.
Bitcoin now and in the future
Experts in this field suggest that the blockchain technology has a great future. Authenticity of transactions is confirmed by the participants themselves, and no new block, getting into the chain, cannot be changed.
This technology is being introduced by banking and government institutions around the world, Visa, MasterCard and American Express are already financing mobile products for settlements in Bitcoin.
But is there any future for this cryptocurrency?
Bitcoin’s capitalization has reached $185 billion and is actively growing. Perhaps, it is not entirely clear yet how this cryptocurrency is valuable, but there are couple of possible scenarios. Given that everything in the world goes into digital format, this will fully affect the money.Use Bitcoin will be much easier, and it will be available to anyone who registers the wallet and begins to make transactions.Bitcoin can completely penetrate Internet commerce, which now has a high level of fraud. Thanks to the technology on which it is based, it will be possible to protect personal data and user operations, which will make online trading safer.