From the virtual arena to every household, bitcoin has been the loudest chant.
The buzz related bitcoins has outstretched in global markets – with all its ups and downs.
Bitcoin is a cryptocurrency that has continued with the roller coaster ride reaching up to $ 19,000 to a downfall recently to $ 12,000.
It all started by the ambiguous personality Satoshi Nakamoto, who brought this virtual currency into the digital up front. Bitcoin came into existence as a substitute of currency, a medium of exchange through digitalization.
Today, bitcoin is a household name to all savvy marketers and potential investors.
With all its uncertainty, bitcoin has been a marketplace for currency trade businesses.
Still, the future of bitcoin as an electronic cash system is still under question mark.
What obscurity bitcoins carry is that it is a cryptocurrency (virtual or digital currency).
There are no hard coins, no hard cash, nor any copy of bill exists.
Bitcoins are not regulated, no governmental involvement, no server to operate the proceedings – no established authority.
There is no regulatory body that governs the process of bitcoin’s buying and selling.
It is entirely an independent system which is anonymous.
Bitcoin as a concept is completely de-centralized since there are no account holder’s names or identity on display, no social security measures at work, in fact no account numbers.
Everything works through the block-chain technology and by encryption keys to connect buyers and sellers.
Mining Bitcoins NOT Diamonds or Gold anymore
Bitcoins are not generated through any machine.
Surprisingly, they are MINED.
Yes, just like diamonds and gold are mined, bitcoins also go through the process of mining. Special encryption keys are given to the miners to get hold of their bitcoins.
There are intense and powerful computer systems that mine bitcoins.
Current statistics suggest that an estimated 16 million Bitcoins have already been made.
So, only 5 million more bitcoins can be mined because the originator Satoshi Nakamoto has capped the quantity of Bitcoins to 21 million.
What will become of the bitcoin market once we will reach to the maximum limit of 21 million Bitcoins? That is the burning point!
You will find thousands of miners associated with the trade of bitcoin.
There are around 10,000 merchants who accept payments by bitcoins.
Now you can also buy and sell goods through bitcoins (only few places to name).
CONTROVERSIES CONCERNING BITCOINS
The largest bitcoin exchange company of Japan Mt. Gox which deals with around 70% of bitcoin transactions was hacked in 2014.
Mt. Gox announced that approximately 850,000 bitcoins were stolen, all belonging to the customers. Most of its customers took the company to the court and filed cases of cheat and theft. Futile attempt! Once the transaction hits the blockchain, its final.
The company was on a verge of being bankrupt and nothing it could do since the worth of the lost bitcoins was around $ 450 million in 2014.
So many speculations related to bitcoins have made investors rethink before investing their money any further.
The recent episode in South Korea has shaken the entire market.
The South Korean government believes that virtual currency is full of fraud and scam.
After U.S and Japan, South Korea is the third largest country known for bitcoin trade.
No governmental control and assistance has led the government to come hard against the trade of bitcoins.
The South Korean top official has made a statement that there can be a crackdown on all cryptocurrencies across the country.
However, the financial sector is busy working to get out of this crisis.
Bitcoin in reaction to this perplexity, is still fighting for a strong comeback.
Evidently, the bitcoin maniacs in South Korea are signing a petition against the government announcement to curb the cryptocurrency.
Will there be an end of BITCOIN?
The increasing popularity of bitcoin indicates that it has potential to grow.
At the same time, its future is absolutely unpredictable.
It is essential for bitcoin to be a viable and stable store of value.
And above all, bitcoin needs to be an alternative of real money.
Not anticipating an end of bitcoin, but we should really think whether bitcoin is the future or simply a gamble to play with.
Well, investing your money in a currency that only exists on virtual ground can be dangerous and requires guts to dive into. Bitcoin’s volatility is constant and here to stay.
However, businesses have started to incline towards bitcoin as a medium of exchange. Intriguingly, tech pundits also say: “Bitcoin is a classic bubble” that will burst one day.