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It is one of the most talked about concepts in the world of crypto currency. A bitcoin is a form of crypto currency which is a digital currency using rules of cryptography for regulation and generation of units of currency created in the year 2009. It is one of the most valuable forms of crypto currency available nowadays amongst various other forms of crypto currency. It is often known as crypto currency because it uses cryptography generating computer codes to convert the data.
It is a form of currency which requires no intermediaries such as the Central bank and hence functions completely decentralized. It is a form of currency created as well as transacted digitally unlike other fiat currencies which are printed. Bitcoins are not printed, but are generated by dedicated computers all around the world. Hence, it is not a physical or tangible form of currency. It has no physical element attached to it which ensures that it is not damaged at any given point of time.
1.2. WHY BITCOINS?
Bitcoins are considered as the future of the investment world due to several reasons:
1.2.1. Power to people
The concept of bitcoins was introduced after 2008, just after the financial crisis. Many of the people lost faith in the government and other financial institutions because such authorities failed to sustain their economies in the global market. Gradually, people started loving the idea of crypto currency where the politicians and other institutions failed to live up to their hopes. Hence, many group of individuals started buying, selling and working in this crypto currency market.
1.2.2. Freedom
This concept allowed the users to carry millions and billions of dollars in the form of bitcoins across the globe. They were no longer liable to pay anything and wait for the banks to operate any transactions which earlier were quite exhausting.
1.2.3. Low Transaction Fees
Every bank charges some or the other rate of interest while receiving or sending money to its customers. Unlike them, the concept of bitcoins has clearly cut down such rates of interests and made it quite negligible and hassle free for its users.
1.3. FEATURES OF BITCOINS
1.3.1. Decentralization
It is a very important feature of Bitcoin where no institution is involved as an intermediary between the transactions. It is operated by several computers all around the world. It is not owned by one particular individual; rather it is operated by open networks. The use of such form of crypto currency highly attracts customers or group of customers who do not want any institution or government to have an eye on their earnings.
1.3.2. Limited supply
Unlike other currencies, this form of currency has a very limited supply in the market. This is also a very advantageous feature of bitcoin where no Central bank can issues as much currency as they want in the market to match the relative value of other currencies. This has an effect on the customers holding such fiat currencies.
1.3.3. Pseudonymity
Since there is no particular validator, during the transaction of sending bitcoins to another user, the identity of the user is not required. This seems quite dangerous but then, the users are identified through the address of their respective wallets. The user sending bitcoins to another user has to first submit their transaction request, after which the operator system looks into the history of transactions of the said user to make sure if he has the required number of bitcoins to make a transaction as well as the authority to transact with another user.
1.3.4. Immutability
Since there is no central institution governing the transactions of bitcoins, once a transaction has been recorded, it is impossible to reverse the same after an hour. Unlike other fiat currency which can be reversed or returned, bitcoins cannot be reversed or returned. Once the money is transferred, the user sending the money cannot receive it back. This technology has been designed in such a way to reduce the chances of frauds or other such illegal activities.
1.3.5. Divisibility
Bitcoins enable the users to deal with micro transactions unlike other fiat currencies. Satoshi, which is referred as the smallest unit of bitcoin is one hundred millionth of a bitcoin available currently.

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