Introduction to Bitcoin
Bitcoin payment system first saw the world in 2008. It utilizes a peer-to-peer approach to transfer digital money from one user to another, without relying on any intermediary party. A blockchain is a digital public ledger that holds information about all occurring transactions. It is a self-sustaining network, which runs due to numerous users, called miners, or, more specifically, the processing power of their computers. For confirming transactions, miners receive a fee in Bitcoin. This allows Bitcoin and other cryptocurrencies to be completely decentralized, as opposed to traditional currencies and fiat money. There are other benefits as well, which contributed to a fast growth of digital money and Bitcoin in particular.
One of the main reasons people so eagerly accept Bitcoin is because it offers anonymity the traditional money doesn’t. Whenever you use credit cards or write a check to pay for something, that transaction can be linked to your identity, and most of the time it is stored somewhere. There are cases when you simply cannot pay using paper money, but that doesn’t matter since they can also be traced back to you. If you use ATM machines to make transactions or go to a bank to receive money on a paycheck, these instances will be tied to you.
Sending or receiving Bitcoins is easy and quick. All that is necessary for this operation is to know the sender’s and the receiver’s wallet addresses. You can easily find sites where you can create your own wallet, where your money will be stored. Once you have it, enter your address and the address of the other party to proceed with a transaction. The information about it will be written into the blockchain. Both parties will remain anonymous, as only the amount of transaction and the wallet addresses are recorded. Bitcoin is a perfect choice for those who for some reasons don’t want to share their personal data whenever they are paying or receiving money for something.
Recognition by Large Companies
Although Bitcoin rose many suspicions when it was first published, over time people felt less and less reluctant to use it. Nowadays, it is accepted by various noteworthy companies along with traditional money. Some companies even try to popularize this cryptocurrency among their customers by providing additional benefits for those who use it for payment. For example, Overstock, a massive internet retailer, offers discounts for Bitcoin purchases. Amazon, Tesla, Target, and thousands of other companies, both small and large, allow their clients to pay using Bitcoin.
Bitcoin also received such a wide recognition due to its blockchain technology. This is what attracts a lot of companies and individuals, seeking for the best solution with the digital money. Decentralized nature of the blockchain, as well as automated ledgers that can handle large amounts of transactions, mean that there is no need for any intervention from outside. Besides, this technology practically eliminates a possibility of personal error, and its transparency reduces the risks of someone meddling in transactions and operations in order to commit some financial scheming. The fact that a number of the world’s biggest companies like Google showed interest in the blockchain technology and financially support its development proves that it has a great potential.
Becoming an International Currency
In the world of spreading globalization also grows the need of a single digital currency that would allow dealing freely with people from all over the world, without worrying about what their local currency is and looking for the best conversion rate. Besides, commission fees for transferring Bitcoins are significantly lower than they are for traditional money sent using the most popular payment systems. This is one of the reasons Bitcoin is accepted practically anywhere now, and all you need to send or receive a payment is a computer or even a mobile phone, so you don’t have to be tied to any place for doing that. The blockchain technology guarantees that Bitcoins cannot be duplicated in any way, so that also makes this cryptocurrency exceptionally well-protected.
High Transactions Speed
With Bitcoin, transactions take little to no time at all, often amounting to mere seconds. After a wallet address is sent, the transaction is confirmed by miners’ computers and recorded to the blockchain. Then the transfer of the specified amount takes place, and it’s all done. The confirmation process is automated and so it does not rely on available human operators, their speed to process it, or the size of a transaction.
After an exceptionally rapid growth in a previous couple of years, there has been a drop in the Bitcoin price. This made people more reluctant to buy this cryptocurrency and pay more attention to altcoins, which are still slowly and steadily growing in price. Nevertheless, Bitcoin has been stabilizing, and experts predict that it will gain even more value in the future, so it is still not too late to join in and get yourself some Bitcoin money. There may be certain instances when the price might go down again, caused by some unpredicted events. However, this is something no currency is protected from, and Bitcoin seems to have passed the critical level. Although it wouldn’t be wise to invest all your money in this cryptocurrency, it is advisable to hold some amount in Bitcoin. There are some indisputable advantages in using it for deals, and it still has not reached its peak price.
Verdict on Bitcoin
There is no denying that Bitcoin is here to stay. There has been a rise of alternative currencies, but being a pioneer is one of many advantages Bitcoin has. A lot of corporate giants recognize the importance of the blockchain technology and are willing to support its development. This way, Bitcoin is likely to stay ahead of its competitors, as its better to focus on making one currency more stable and beneficial than others instead of scattering the resources on the whole plethora of existing and upcoming titles. Nevertheless, it’s still a good idea to keep an eye on the most successful of them. Bitcoin or not, blockchain and cryptocurrencies have not shown their full potential yet and are gaining more and more financial credibility.