Bitcoins are the oldest yet extremely popular kind of cryptocurrency that is used today. It was launched in 2009 and since then the value of this type of digital currency is shooting upwards. It is the largest cryptocurrency that is measured by market capitalization and also includes the data stored in the blockchain. The software that runs the transactions is free for everyone and whoever wants to use it can run the bitcoin node and store it in the blockchain system. Considering the basics of its formation, it all came from the origin, technology used for the creation, and the utility of bitcoin as the money matter. Launched by mysterious developers, the system has definitely gained more attention than ever.
The bitcoin network is not governed by any central authority. There is no need for a middleman for any kind of financial transaction in this system. Also, these are stored electronically which serves to be the safest. And that is the same reason why it was first launched as a peer-to-peer electronic system. There are several benefits associated with bitcoin making it way more different than the traditional currencies. The bitcoin price is based on various factors. Some of it cannot be understood or defined that easily. Yet, the valuation of the system was at $0.30 initially in 2011, and in 2017 it shoots up to $19,783, becoming an all-time high. This shows how much interest people show in the advanced currency system.
Future of the currency:
The bitcoin price will be fluctuating according to external and internal factors. Mostly it will be determined by market capitalization and the data stored in the blockchain. Being only electronically present, this system is promising and the future looks too good to even imagine. The main reasons being;
- It is peer-to-peer trading and there is no inclusion of third parties, even financial institutions.
- There is no need to pay sales tax on these transactions.
- The transaction fees are also extremely low compared to the traditional system.
- International transactions are quicker than bank transfers.
In bitcoin, it is important to note that the markets set its price. These prices vary according to the selling price in different exchanges. This is the main reason why it is known to be volatile and difficult to understand. It might look like the stock market but it is highly-risky to be involved in bitcoin currency if one is not so sure of its usage, benefits, and value.