As we know after 2008 the concept of digital currency has been something everyone is talking about. From time-to-time money has been represented through different modes. Some of such prevalent modes were: barter system, gold exchanges, physical currency and ultimately the digital form of money. All over the world, you will see that you will earn money only if you put some value or any work in return.
That means: MONEY = VALUE
After all of these mechanisms, the ultimate virtual currency started its operation. The pioneer of this virtual currency has been named Satoshi Nakamoto. He created the first virtual currency called BITCOIN in this digital era. The feature that this currency carried was that it had no outside control, it is encrypted through blockchain technology and no one can decipher the data carried inside the blocks.
All these technologies make it difficult for hackers to hack the data. If you want to secure your Bitcoin wallet then you can find more tips here.
All these features attracted people around the globe to invest in cryptocurrency as other banking systems had failed to keep their money safe. We know the money that is being circulated in the market through banks is the hard-earned money that we deposit in the banks with a trust that our central banking system provides us.
But for instance, if we all at the same time go to these respective banks to withdraw our money, they probably would have nothing to reimburse. Our money is the only way the government is running the countries across the world.
That is why this concept of cryptocurrency was developed so that people have full control over their money. As a result, we have seen so much of the world’s population investing in it.
The reason for bitcoin’s popularity?
Bitcoin is a cryptocurrency whose existence depends upon the acceptance it gets by people irrespective of place, time, and form. It has no physical existence. When you buy a bitcoin, you buy a specific bitcoin address through which you do a transaction to another specific bitcoin address.
It is an automated structure that does not require you to do programming and coding. It works on an autorun algorithm, to run that algorithm you need a system and computer. At such a large level you need thousands of computers. Bitcoin mining’s role has made third-party involvement disappear from the digital market.
What is bitcoin mining?
Through bitcoin mining, new coins are produced. In this process, people through their computers run the algorithm and after a successful transaction, they mine bitcoins as a reward. Because the system is in distributed and blockchain form, so there is no space for the concentration of power, and problems like hacking, etc are solved.
Bitcoin mining and inflation?
To solve the problem of inflation it is already decided that there would be no mining beyond 21 million. In 2009, you could generate around 200 bitcoins in 2-3 days but at present to generate one bitcoin a decade would be less. In 2009 you could buy one bitcoin in cents and now its value is in millions. This shows the popularity of bitcoin over time.
Conclusion
I hope the piece of information shared above would enhance your knowledge about Bitcoin cryptocurrency. It provides more return of investment that is why it is more popular but at the same time, it is risky also. The fluctuation in its value becomes a matter of concern. Try to initiate investment in small sums. That is why money with brains would be safer to mitigate the risk of money loss. Have a profitable investment.