If you are not living beyond the periphery of the Solar System, you would invariably have heard of the term Bitcoin and how many people are minting money in this unconventional asset class. For those of you who have no idea please go through the article below to understand it in more detail
Bitcoin is the first decentralized digital currency. It is a system which works without an administrator or without the intervention of any central bank. Also, it is a peer-to-peer network and maintains a shared ledger called Blockchain where all the transactions are recorded. Bitcoins are created as the outcome of a process called mining and can be used as an exchange for goods and services. The first known usage of Bitcoin was a transaction of 10,000 Bitcoins for 2 Pizzas delivered by Papa John's.
Bitcoin was invented by a person (or some say a group of people) under the name Satoshi Nakamoto. Till date the identity of the inventor has not been revealed and various sources have conflicting versions of his identity.
As with most things in life Bitcoin has a few advantages and disadvantages. We are listing the top 3 advantages and disadvantages here.
- Bitcoin is completely decentralized and thus works without the intervention of any central bank. This makes it immune to any currency manipulations and all the other associated dark arts.
- Bitcoin Transactions are irreversible and is a welcome relief for merchants who face problems with the reversal and chargeback of transactions.
- Bitcoin Transactions Fees are generally extremely low and paying the transaction fees is optional. Miners prioritize the transactions based on higher fees.
- Extremely susceptible to online security threats and hacking, there have been multiple reports of hackers stealing Bitcoins. In case of such an unfortunate situation users have no where to seek redressal.
- Of late there have been increasingly vocal voices from Governments on Bitcoins not being legal tender. Any regulatory action from the Government would most adversely impact the popularity and price movement of Bitcoins.
- Bitcoin usage is still in infancy and we have a long way to go before Bitcoins are universally accepted.
Please watch the video below to know about Bitcoins in detail.
Having watched the video, please don't hesitate to let us know about any doubts that you may have in the comments section below. Also, this was just an introductory post on Bitcoin. In future we would be coming to you with more articles related to Bitcoin to help you understand the world of cryptocurrencies in a clearer fashion.
Standard Disclaimer :: The information in this article has been compiled from freely available information on the internet. None of the views mentioned here should be considered as solicitation to transact in Bitcoins. The writer holds no Bitcoins on the date of publishing this article.
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