Have you heard about Bitcoin and cryptocurrency? Though this is not so surprising that many of you do not know about this, but Bitcoin is gaining much importance and popularity these days. People do not know about bitcoin clearly is due to low technical knowledge and underlying technological skills, which is really frustrating. For this reason, this guide helps in offering the best concepts of blockchain and bitcoin in an easy manner.
Who Invented Bitcoin?
The Bitcoin was invented was so-called Satoshi Nakamoto. After the invention of the cryptocurrency, he published his invention on the paper and circulated it throughout the cryptographic community. In the year 2009, Nakamoto completed the entire code for the Bitcoin software and also helped other people in the community to contribute to it. However, there is no one who knows who Satoshi Nakamoto was. The journalists do various investigations, and it has been speculated that he was quite famous among the students.
However, if you keep aside the invention or the inventor behind cryptocurrency, you can say Satoshi Nakamoto has revolutionized the whole idea of digital currency and has reduced some of the drawbacks that you face in case of traditional currency.
Also read: How To Earn Cash with Bitcoin
What Is the Problem Faced By Traditional Currency
Everyone knows how to withdraw the money from the ATM and how to proceed with the situation. But how many know how the transaction works. Do you know that the metal discs and strips of paper have value or not. Well, in the traditional money dispensing, the currency has some physical commodity like gold. So, if you remember, in the year 1900, gold was worth $20.60 per ounce. This means that the United States Government was not allowed to mint $20.67 worth of currency; it had a similar amount of gold in its reserve. In the US, this system ended in the year 1971 when the American dollar had flat currency.
Thus, the value of the currency was determined by supply and demand and is sustained by the people’s trust. In the traditional currency case, the value of the currency depends upon the supply and demand, and it is sustained by the people’s trust in the country’s economy.
Another problem that you will face in the case of flat currencies is that the system is centralized, which means that it requires the right regulation. In simple words, the transaction needs to be facilitated with the help of the financial body, credit card, company, or the bank, to make sure that it is carried out smoothly. Bitcoin Revolution helps to know more about cryptocurrency.
How The Bitcoin Solves The Problem Of Centralized Currency
Bitcoin helps in solving the problems that are linked with the fiat currencies. With the help of the bitcoin, you can transfer the funds to anyone in a short time and with minimal transaction fees. This is possible for the fact that the Bitcoin system is decentralized.
In other words, it is said that Bitcoin is a distributed decentralized ledger on which all the transactions are recorded in a nice manner. The ledger is implemented through the blockchain technology. Each one of the blockchains will represent the series of transaction. Once the transaction is carried on, the block is completed, and it is not altered. Here are some of the problems that are solved by Bitcoin-
Here Are Some Of The Problems That Are Solved By The Bitcoin-
- Decentralization- one of the most important features of using the Bitcoin is that it is decentralized, which means that it is not controlled by the single authority. The code of the software is said to be open-sourced and maintained by the volunteers whoever wants to participate in the pitch and starts to contribute.
- Anonymity- Unlike traditional financial systems, the Bitcoin software benefits are many. The identity is the Bitcoin address. Your ability to carry out the financial transactions depends upon whether you have the sufficient funds or not.
- Immutability– the bitcoin network and the blockchain is immutable. This means that once the transaction is over, it cannot be reversed. This means that to whom you have sent, the money was actually received by him. Though some people might think that it can be problematic in the case of eCommerce business, where the buyer needs to be protected, however, with the Bitcoin, this can be achieved with the help of escrow accounts.
- Having limited supply- in the case of traditional flat currency, there is unlimited supply as the reserve bank can mint the money as much they want. But, it is not possible in the case of bitcoin.
These are some points that you should know about cryptocurrency and blockchain. It will be helpful if you go through the link https://www.cryptovibes.com/bitcoin-revolution/ to have better understanding of bitcoins and cryptocurrency. This link will also provide you information on crypto currency trading.
Also read: What is Bitcoin? – CNNMoney – Business