Bitcoin success has brought in many aspects in which digital money can change the world. It changes the way we bank and conduct transactions. Also, it has changed the perspective in which we view the world.
Each person earns money through transactions and sells. Likewise, Bitcoin can be earned as a form of payments, exchanging currencies and mining Bitcoin. Earned and purchased Bitcoins are securely put in Bitcoin Wallets which are an online secure Bitcoins storage.
Every Bitcoin transaction is recorded in the Bitcoin network (block chain) which authenticates each transaction.
Not all traders have accepted Bitcoin as a form of payment. Its valuation is speculative. Bitcoin usage in illegal trade such as black market and gambling makes people doubt it. Availability of cheaper options such as the dollar in trading, place Bitcoin in a less favorite position.
Still, the potential growth of Bitcoin comes from the largest volumes of trading, increase in the number of wallet holders, large corporations such as Microsoft accepting it as a method of payment.
The combination of its underlying technology and finance, Bitcoin framework is impressive. Bitcoin strength is not being free from political interference and high valuation. Rather, it is in its underlying infrastructure, secure transactions, and record keeping which could change the global financial system.
Transacting using digital money eliminates the third party charges that financial institutions such as banks charge. The growth in mobile money may promote the usage of Bitcoins in transactions over vast areas with no extra charges. Bitcoin secret lies within the blockchain. It’s a secure digital ledger that keeps track of all transactions.
Thus, it facilitates agreements between two parties on the number of Bitcoins each owns. Each Bitcoin wallet holder has a replica of the blockchain transactions. Apart from recording transactions, the blockchain can be used in recording details such as transaction charges that can be used as a public record.
The cryptocurrencies concept has facilitated the development of virtual currencies such as Ethereum. Just like eBay and Facebook have profited through advertisements on their users, Bitcoin blockchain can increasingly become profitable through their users. The network enables peer-to-peer transactions on the network.
Bitcoins do not operate from a single location. It does not have digital directors. The company shareholders are the Bitcoin holders and pay its employees the miners. Theoretically, it’s possible to run the company without directors since the block chains are pre-programmed with specific models to run and operate in.
Bitcoin has developed as a cryptocurrency on a background of the strong and resilient network. The scripting language is vulnerable to third party attacks. Technological advancements can lead to the security of Bitcoin.
In conclusion, Bitcoin has a great underlying technology. Just like Torrent and Napster, the blockchain applications offer social, economic, technological and legal problems. With time, people will gain trust with it as a mainstream currency especially when financial regulation takes place.