Bitcoin is a virtual form of currency and it is used to buy and exchange goods in a digital way over the internet. The concept was first introduced to the world in 2009 and since then it has been a topic of great discussion like any other form of cryptocurrencies. Back in 2009 when the concept was first brought to notice of the people almost everyone found the idea hard to believe but with the gradual progress of the world Bitcoin has gained popularity in the field of cryptocurrencies and now many people believe that shortly soon bitcoin may become a legal mode of virtual transaction over the internet replacing the old method of exchanging money or any other form of local currencies. You can buy bitcoin through different transaction methods.
Bitcoin is a cryptocurrency or online currency which is used in online trading. It is a first decentralised currency without the regulation of central government. Satoshi Nakamoto is the inventor of the Bitcoin. It gains its popularity because of the fact that it can be transferred from one user to another without any intermediate. It has a market cap of US $1.149 trillion. One of the interesting facts about bitcoin is that its market is mainly dominated by women. In India, 1 Bitcoin is equals to 35, 77,932.64 Indian Rupee.
Do you how cryptocurrency work and what are the reasons behind its popularity? Well, today, we are all aware of it and its growing demand. The financial scenario has changed in many terms. However, it is good to be true that where there are positive sides, there are negative sides too.
Undoubtedly cryptocurrencies are popular during the covid 19 outbreak. While it is likely to mention that Bitcoin is one of the oldest investing currencies to date. In recent times, there are multiple examples available when it comes to investing. Hence, crypto is fun and increases the level of curiosity in many ways.
How Bitcoin works?
The concept of Bitcoin can be understood in simple terms as a wide spread sheet that contains tracks of every transaction that happened from the day it started. It helps in knowing the number of bitcoins that are being used by an individual over time and how much is left in his/her account.
Perks of using bitcoin-
- Like other financial systems, bitcoin is not under the control of a single authority, institution, or person. It is decentralized and doesn’t lie in the hands of one central authority. Instead, every single person in the world can have a copy of their account and can keep updates of their transaction.
- Hacking is impossible in the case of bitcoin. As the system is maintained by cryptography it becomes hard for hackers to infiltrate the transaction. Cryptography encrypts the transaction thereby keeping the system safe and secured.
- The problems of trust issues and centralization are solved smoothly with the help of cryptography.
- The identity of the user is kept anonymous.
- The trading process doesn’t require going through long and hectic government procedures.
- Any kind of trading issue is settled in an even manner.
Why Bitcoin is controversial?
Despite being the most efficient and secure way of virtual money transaction among all other forms of cryptocurrencies, there are a few disadvantages of this virtual way of trading. Some of them are-
- Many people believe it to be a trading system based on extrapolation.
- It is considered to be harmful to the environment as the process involves a lot of energy consumption by the computer or any other gadgets.
- The system keeps the identity of the user safe and hidden and thus allows certain illegal businesses. It makes the process of buying illegal materials easy and safe for licentious people.
- Possibility of facing huge losses.
Bitcoin is a digital currency widely used by people to invest their money. Because of the covid-19 people get more addicted towards the online culture due to which popularity of bitcoin is continuously increasing. But because of no regulation of any authority over bitcoin it has many side effects. Indian government is also in a process to launch its own Cryptocurrency regulated by RBI.
So, do you think it is worthy enough to go into investing in those bitcoins? Be it crypto or any financial investment analysis, it is better to look and consider all the points carefully to get complete knowledge of all the advantages and disadvantages.