Bitcoin gains some serious popularity in 2017 especially after a sudden increase in value the popular cryptocurrency almost got to $20,000 fallen short at just nineteen thousand seven hundred and eighty three dollars but still this made huge returns for those who had probably purchased a coin for less than a thousand dollars at the beginning of 2017 or even earlier than that unfortunately for most of us we were caught unaware of this huge opportunity then for some of us any cryptocurrency may have seen a poor investment choice especially when it’s described as a drug and gangster money by mainstream media however if you did manage to ignore all this and invested in Bitcoin then you must have made some good returns so if you don’t already know cryptocurrencies are basically digital or virtual currencies that uses cryptography for security the biggest advantage of cryptocurrencies are that they are extremely difficult to counterfeit and are also not issued by any central authority they are decentralized in essence making it impossible for governments to control them which is why I guess they are so alluring especially if you are concerned about the safety and security of your hard-earned money.
How did the Bitcoin and Cryptocurrencies Come About Well in the 90s.
There were several attempts to create digital currencies but they all failed due to third party approaches however in 2009 an unknown person or group of people under the alias Satoshi Nakamoto introduced Bitcoin their launch featured a peer-to-peer electronic cash system that is decentralized and eliminates the need for a regulatory third party as of September 2015 there were over fourteen point six million bitcoins being treated at an estimated value of 3.4 billion dollars thanks to the success of Bitcoin it gave birth to other cryptocurrencies such as like coin aetherium ripple Manero and about 1,400 other cryptocurrencies.
Bitcoin uses a Clever System called Blockchain technology.
Which ensures that all participants take part in the system to double spending the blockchain is basically a public ledger that keeps a record of all transactions happening within the network in making all the details available to every participant in that network for this reason it is impossible for people to fraudulently spend coins the beauty of blockchain technology is that all the records of transactions are encrypted from hacking each transaction consists of these senders and the recipients public key and the number of coins being traded so each transaction needs to be signed off by the sender but the use of their private key the transaction is then broadcasted in the network after being confirmed within the network only miners.
Which are computer solving cryptographic equation.
Confirm a transaction by solving a cryptographic equation a miner will take a transaction market as legitimate then spread it across the network once confirmed the transaction is added to the network status basically the system incorporates all the data without the need of a third central authority there are many rules programmed into the system to prevent fraud and hacks this makes the network trustworthy and secure hence its attractiveness and allure cryptocurrencies makes it easier for two parties to transfer funds between each other with the use of your public and private key you can make secure money transaction with anyone in the world while at the same time avoiding hi fees like those charged by banks for wire transfers the ingenuity behind Bitcoin is the use of blockchain technology that allows the storage of an online ledger of all transactions free from hacking and available for all members of the Bitcoin network to see this technology has further prospects in online voting .
The Decentralized model of Cryptocurrencies Creates a Virtual world.
Crowd funding especially in elections blockchain technology can be used to verify the legitimacy of votes both in casting and tallying hence reducing cases of boat mess counts and irregularities all while creating a freer democracy the decentralized model of cryptocurrencies creates a virtual world with no boundaries where one person from any country can trade with another without the evaluation of the currency and without third parties limiting access to who you can and cannot transact with while all this sounds good cryptocurrencies have certain shortcomings such as cryptocurrencies are virtual and lucky.
Central repository cryptocurrency balance can be wiped out if the backup also failed.
The absence of a Centralized Authority such as a central bank or a Federal Reserve means that it is entirely possible for a whole economy to collapse the market value of cryptocurrencies is controlled by market forces and thus susceptible to large fluctuations despite high security algorithms used in blockchain technology cryptocurrencies are still susceptible to hacking even in its relative short existence Bitcoin has experienced numerous thefts with some of them being well over a million dollars in value hacking is still a problem with cryptocurrencies then there is a question of whether they are illegal or not unfortunately there is no United stance on cryptocurrency with most governments still expressing mistrust and discomfort with the legalization of a decentralized money system it goes without saying that the decentralization of the money market is dangerous for the stability of any economy hence a genuine reason for this concern some countries such as Bolivia and Ecuador have completely ban cryptocurrencies entirely however large nations such as the United States have so far except the cryptocurrencies as clean platform to engage in business since their records are not a traceable or subject to litigation blockchain technology also holds potential benefits in limiting fraud and rigging by establishing trustworthy an alternative currency in fact some stores have even accept a Bitcoin as payments but since the u.s. sees Bitcoin and other cryptocurrencies as property like stocks and bonds instead of an actual currency it has imposed tax laws on crypto currency trading Canada Brazil and a few other countries seem to share the USA’s thoughts on this but other countries such as Morocco Ecuador Nepal and a few other countries have banned crypto currencies Bitcoin and its trading completely a few more European nations have also accepted cryptocurrencies but they also see crypto as a property instead of an actual currency and thus have also imposed taxes on them so blockchain technology and digital currencies are changing the old rules and systems of doing business the existence of a decentralized system of cash flow holds huge prosper for the world especially by eliminating third parties cutting red tapes and also creating a more inclusive and open financially eco system however cryptocurrencies also provide money launderers with a online voting systems and crowd sharing and financing with all the information being available to the public it is only a matter of time and until the entire world has to face the reality of blockchain technology whether we should embrace cryptocurrencies and blockchain technology is still matter up for debate but I think blockchain technology.