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What are bitcoins and why are they tremendously popular?
Posted on: 30/Nov/2017 5:41:43 PM
A single bitcoin is priced more than $10,000. According to experts, the rate is likely to uptick furthermore too. Bitcoin is a world-known virtual currency with which people can purchase goods and services. With this, it is possible to exchange money without any kind of banks, credit cards or third party details.
Bitcoins have got a fuzzy history though! A lot of hackers seek ransom or illegal drugs online. However, in the recent years, it has got a lot more popular among investors.
With increase in price, we believe, we should throw light on bitcoins now
Here is how bitcoins work
Bitcoins are basically digital currencies that are in no way related to banks or governments. Users can anonymously spend money using bitcoins. Those who create bitcoins are the users who mine the bitcoins by lending computers for cross-checking user transactions. They get bitcoins in return of them. These can either be bought or sold instead of US dollars or other kinds of currencies.
What is it worth of?
According to a leading portal that monitors bitcoin rates, the bitcoins are traded for $11,000 on Wednesday before it dipped to $9,800. This rate range is about 10 times higher than that in the beginning of the year when it was worth hardly of $1,000.
There can be very sharp swift in rates of bitcoins. Earlier this month, there was about 22 percent plunge in bitcoin rates within just 3 days period.
Popularity of bitcoins
Bitcoins – they are computer codes digitally signed every single time it gets transferred from one owner to another. The bitcoin transactions can be made at random, anonymously, thus gaining popularity with criminals, tech enthusiasts, etc.
Are bitcoins anonymous?
To a certain point, yes, bitcoins are anonymous. However, it is possible to trace the transactions and accounts. The account owners will not be known though. At the time of converting the bitcoins to regular currencies, it will be possible to track down the owners.
Usage of bitcoins
A few businesses have stepped into the bitcoin bandwagon. There are a few online stock sites that have in fact started payment as bitcoins. Recently, the U.S. exchange operator CME Group had announced that it has got plans to open futures market before end of the year if it would get its nod from the regulators. As compared to cash or cards, the popularity of bitcoins is still in emerging state. A lot of individuals and businesses don’t even accept bitcoins as payments.
There are opinions against bitcoins as well where high-profile banking executives claim it to be a fraud. The blockchain technology present behind bitcoin is a concrete way in which banks can precisely track trading and assets.
Should I also have bitcoins?
You may be given 2 reasons to buy bitcoins. The first reason is to use as a payment form or as investment where you can store value. The usage of bitcoins is limited though. For Xbox and Windows Store platform, Microsoft accepts bitcoin payments. Overstock.com also accepts bitcoin payments. You however cannot spend on Amazon or Wal-Mart.
Investors till date debate about the virtual l currency. While many are enthusiastic about bitcoins, a few others like Dimon or billionaire Mark Cuban stand opposing it. Products are likely to be launched by Wall Street that will revolve around it. A few investors even consider bitcoins as speculative and risky investment and claim that it should not be used as a place to invest all the money just the way you do with gold or commodities or traditional currencies.
Securing bitcoins
The system of bitcoins is kept safe and secure using miners who are a group of tech-savvy users. They invest all their computing knowledge and power into the blockchain technology which is a global running tally involving all kinds of bitcoin transactions. Using blockchain will resist spending the same bitcoin twice. For the effort invested, the minors shall get rewarded with occasional bitcoins. There will be no issue of counterfeiting as long as the miners continue to secure bitcoins.
The launch of bitcoins
It was back in 2009 that the bitcoins were launched. A person or a group of individuals functioning under the name Satoshi Nakamoto made the mysterious launch. It was then adopted by a group of enthusiasts. As the Nakamoto dropped it off, bitcoins started getting widespread. This however doesn’t matter, say proponents. There is an internal logic pertaining to the bitcoins. Last year, an Australian entrepreneur claimed himself to be the founder of bitcoins and added that he did not have the needed courage to share the evidences or proofs for the same.
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