Bitcoin is not actually a coin it's money you can rely on. In other words, it’s just some awesome software. It could be your tablet or Smartphone that is able to send and receive money with anyone anywhere in the world for free instantaneously. It frees the user from the traditional Gatekeepers to their wealth. On the contrary, when it comes to the financial transactions the bank is actually acting on your behalf and moving the funds for you. This is where Bitcoin is fundamentally different. This is the problem that was solved by Bitcoin which is able to take something great. The cryptography is used to design encrypted programs. The Bitcoin protocol is open source, meaning that the programming code is free. The Bitcoin platform is one of the things that make it so unique and world-changing. The invention of Bitcoin and Cryptocurrencies made it possible to exchange assets and values instantaneously.
The world of digitalization
Bitcoin is the same as a digital purse which stores and allows the holder to Bitcoins from one wallet to another Technology would impact the financial industry. Bitcoins aren't physical and they certainly aren't underground. Rather it is a digital commodity. However, there are some interesting similarities between Bitcoin and precious metal, gold that is found underground. Gold has been money at a store of value for thousands of years. Today gold is mined all over the world. The amount of gold that can be extracted from the ground decreases over the life of a mine until eventually the mine is exhausted of all of its gold. Bitcoins are also mined in a similar fashion. The Bitcoin algorithm is programmed so that the reward for mining new Bitcoins is half every four years to control inflation. In the year 2140, all Bitcoins will have been deemed to have been mined. This phenomenon balances the supply and demand gap. The other crypto Currencies are following the major coin and accelerating their value. The Bitcoin and cryptocurrencies are considered as digital gold.
The Bitcoin mysteryRegardless of the true identity of Satoshi Nakamoto, the person behind this magic money, what he has invented could have profound effects on how our world evolves into the future. So, this mysterious figure, Satoshi Nakamoto vanished two years after publishing the white paper for the peer-to-peer electronic cash system. The researchers believe Satoshi was a group of hackers working in some institutions to create a new monetary system. He had good knowledge of the allies and the financial system he was with.
Bitcoin is built on Public and Private Key encryption, which makes it safe for both public and personal usage. Keys allow us to access and control our valued possessions. They also protect our valuables from being stolen. The same can be said about our finances. Bitcoin is very different in this regard. Owing to a decentralized network, nobody gets to turn it off. If you have the private key you get access to use it. Because Bitcoin is built on public-private key encryption the entire workflow for sending payments particularly online is fundamentally different from that of credit cards.
Institutional adoption of Bitcoin is in transition state yet is encouraging. Mark Zuckerberg, the owner of Facebook has just started a crypto project; Libra. The main reason for this project is to ease the payment system worldwide. China has developed the digital Yuan and Iran has announced launching its own cryptocurrency. So definitely that is a huge boost to Bitcoin. The advantages of Bitcoin continue to increase its popularity around the world sometimes in the most unlikely of places. Multiple proposals have been made for Bitcoin ETF that is paving way for global adoption. Still, this industry is working under strict regulations. Bitcoin got attention when it crossed the 1000$ mark leaving the gold behind. In December 2017, the crypto market cap reaches $800 Billion and Bitcoin and Cryptocurrencies touched their horizontal lines with maximum gains. It's just the beginning as this invention has yet to explore many higher highs. Apple alone consists of $2 trillion markets that are about 1000 times high as of the Crypto industry.
The recent scenario during COVID-19 has discouraged the use of paper currency due to the suspected spread of disease with the usage of paper currency. South Korea burned all their paper currency in the wake of this issue. On the other hand, people while in lockdown preferred online shopping digitally. The financial system of many countries suffered. The economy went on the brinks of collapse. This also played role in Bitcoin and Cryptocurrency adoption as well. There is no doubt that the Bitcoin industry could help the financial system to perform well. All the stakeholders must do efforts to give this invention a chance to flourish for the sake of humanity. The hash power generated by the miners was used to explore the vaccine for COVID-19.
Benefit for Bitcoin transaction
You could be funded by anyone who wants to support you at any time. Bitcoin payments are a push system. This makes it a faster and cheaper system than traditional poor systems, like credit cards or other payment processors. Bitcoin transactions are final and cannot be reversed and don't have chargeback. Bitcoin adoption and acceptance has seen a growth over time and mostly by restaurants The first large publicly-traded company to accept Bitcoin is overstock and they now ship goods over 200 countries. Recently I checked Amazon only ships to about 100 countries. So, there is seating in entire markets.
The welfare of developing countries
The people in developing and third world countries will benefit the most. Bitcoin is the easiest safest fastest best option for people that don't have bank accounts. Smartphones and Bitcoin are a fantastic solution and the opportunity for them to participate in the world's economy without having to deal with banks. On the other hand, this invention may also be used to fight hunger and poverty in countries with meager resources.
The Bitcoin importance arises back in 2013, especially during the Cyprus event. When Banks were shut down and money was confiscated from people. This is actually going to probably start happening in many other Western countries. They witnessed the tearing socio-economic fabric of this financial system.
It's difficult to say exactly what's going to happen in the future, but it's definitely going to keep happening.
Recently shut down the banks in Greece for months and breadth of interest to people living in Europe. They passed a European Bank bail-in legislation. So that must be a huge wake-up call. The people that they're doing that so in Cyprus are actually possible for service that close the bank's then they came up with some legislation that said the banks could just take their customer's money to keep afloat. So, they didn't have that legislation on they did not Cyprus now, they already have it in place. So, they know what's coming. We may see Bitcoin as a way to financial freedom and get rid of the situation where people pay taxes and they've done everything and like what happened in Greece and Cyprus were in trouble.
Hazards for Bitcoin
Many people have reservations over Bitcoin because there was a lot of news bout hacking and scams. The collapse of MT. Gox Bitcoin exchange in 2014 caused much confusion and skeptic is about the security of the Bitcoin collapse of the one largest Bitcoin exchange Bitcoin is now on the radar of many institutions within the financial industry. The misuse of cryptocurrency and Bitcoin in financing terror groups and illegal activities on the dark web has deteriorated its reputation. This compelled the watchdogs to adopt strict regulations. The next big issue is the monopoly of Bitcoin whales that a big reason for the huge volatility of the market. This unusual volatility sometimes sinks people's lifetime savings. This issue is to be heard for the nurturing of this market. Hence it could be the future of our world look like with such a revolutionary tool. The possibilities could be truly magical the coin is Magic internet money allows you to send and receive money simultaneously. The authorities should adopt measures to ensure the effective and beneficial use of this unique invention to help to curb poverty, recession, and hunger from the world.