Chapter 1: Knowing What Exactly Bitcoin Is

Bitcoin is a type of digital currency that is produced and held electronically.

They are not issued as printed papers like the dollars, yen, euros, and pounds. They are increasingly being produced by people, businesses, and enterprises running computers all over the world using software that solves mathematical problems.

Bitcoin transactions are sent from persons to persons without a third party like the conventional centralized banking system. In other words, it operates on a decentralized system with no government, regulating body, company or individual having sole control over it. Hence, all transactions are peer to peer.

All transactions carried out are absolutely transparent. Copies of the electronic ledger are reserved across a distributed network of computers hosted on the web with no single point of failure. The technology behind this is Blockchain which is fast becoming well accepted worldwide. The mining of Bitcoin is difficult, and as it stands, the demand for it is very high hence it’s rapidly increasing exchange rate. It is a currency which is only less than a decade, yet it has gained more relevance than the printed fiat currencies. This is because of the value it has created in such a short time of its existence.

Bitcoin uses the acronym BTC as its unit. Bitcoin and other digital currencies like Ethereum and The-Billion-Coin also fall in the monetary category known as cryptocurrencies. They are also based on mathematical proof.

 So… What Is Cryptocurrency?

Cryptocurrency is a general term used to describe digital currencies created to enable the medium of exchange using cryptography.

This ensures the security of all transactions carried out as well as controls the transfers and creation of additional units. Bitcoin is the first ever decentralized cryptocurrency created.

This decentralized cryptocurrency is based on a software developer called Satoshi Nakamoto’s proposition. He proposed that an electronic payment system currency, independent of any central authority, transferable electronically with low transaction fee and ease be produced. His idea yielded results when Bitcoin was created in 2009. Today, the smallest units of Bitcoin are called the Satoshis.

The Trending Popularity Of Bitcoin

After a turbulent start of 2017, there was an increasing rise in the global cryptocurrency market and the market hit its stride in the early month of February. This increase rise gave reasons for strong optimism in the future of Bitcoin.

These rises out-performed key market leaders such as S&P, DOW, etc. giving Bitcoin unusual popularity. Bitcoin has also found an increase in its usage and value.

Experts believe that it is because of the following reasons:

  • It is believed to be safe and appreciative which has helped to grow its value.
  • Payment methods involving high-risk fraud have drastically reduced to its barest minimum with its usage unlike those done through credit and debit cards.
  • Some parts of the world where the no-VAT ruling is practiced, e.g., Europe, has also helped to increase its popularity.
  • Another profound reason is its increasing acceptability all over the world for payment for goods and services via the web.
  • The future of cryptocurrency is fast taking over from other online payment methods such as PayPal, credit and debit cards which has restrictions on usage. Some countries are not even allowed to use such means of online transactions.

With the popularity of Bitcoins across the globe, it is certain that the future looks bright for the digital currencies.

More and more people, companies and agencies are starting to take a keen interest in this form of currency.

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