According to Investopedia, “cryptocurrency is a digital or virtual currency that uses encryption for security.” Thus, Bitcoin is virtual money protected by a digital code, and not by any physical object, such as a coin or check.
Although once it can be divided into an unlimited number of small pieces, the total number of bitcoins on the network is limited. According to BitcoinNakamoto, no more than 21 million bitcoins will be released to the system. Separate them as much as possible, but do not print extra money. Otherwise, governments that owe government money may never exist.
Also, the currency is universal, so there is no reason to transfer funds from different authorities. This means that one unit is equal to one unit of the same currency in cyberspace and around the world. The cost of goods may vary, but the numerical value of money will remain the same. Bitcoin has the potential to become the first successful global currency.
How can Bitcoin become a stable currency?
2009 has come, and Bitcoin is trading. It began to catch up. The first block is mined on January 3, and in the first year, an equivalent of $ 900 million in bitcoins is created. As of June 2017, more than 16 million bitcoins had a market capitalization of more than $ 170 billion. Every year, the reward for mining decreases and the skill necessary to search for it increases.
Technically, we are already used to trading and world currency. The Internet allows us to conduct business between any two points in the field and beyond, while products such as Visa and Mastercard, or services such as PayPal, will enable us to quickly, accurately and without problems carry out digital exchange of various currencies.
So, isn’t global digital currency the next logical step, eliminating the notorious brokers? Moreover, transactions are conducted directly from the peer-to-peer network, bypassing banks by obsessive rules and committees.
What can happen to world currency?
But, as expected, dying ships begin to call for an end. According to some who believe in the prophecy of the Apostle John about the end of time in the Book of Revelations, Bitcoin may be a sign of the beast.
They say that ultimately all financial transactions will be controlled by the antichrist government … and a bunch of terrible things. Whether you believe it or not, it’s still an eerie image.
Even many unbelievers have their doubts. They believe that over-digitizing entire currency systems unacceptably exposes entire communities to hackers, as well as the tragic risks of fraud and embezzlement. In the end, cryptocurrency is anonymous, so you should not be afraid of the abominable types of disclosure.
Worse, because cryptocurrency records are utterly digital without a central repository and with the wrong backup, the balance could be destroyed entirely due to a single computer failure.
But here is the thing. Bitcoin is awesome. Traders like to accept cryptocurrencies because transactions cannot be cancelled by a bank or broker. Anyone can access cryptocurrency, unlike banking operations, which often require identification and credit checks – not to mention transaction fees. Crypto news is very important and will always give you information about all the digital currencies.
Also, unlike a sluggish dollar, the value of bitcoin currencies has risen sharply in recent months, followed by ongoing stability.