The fools (short) guide to Bitcoin.
“Bitcoin is either feared because of ignorance or distrusted because of its history,” ~ Joe Cutler
Bitcoin is a digital payment system, which was released as an open-source software in 2009. It is a digital asset which is commonly called a decentralised digital currency. It is an open software and like the internet, nobody can own it. It was an attempt to remove third parties from the transaction process.
Bitcoin is the first example of a growing category of money known as cryptocurrency in which open-source software solves complex mathematical calculations to mine more Bitcoins. These “miners” make the Bitcoin network function by validating transactions and thereby creating new Bitcoins. There is no way to chargeback a Bitcoin transaction unless the recipient actually sends the coins back to the sender.
In such a system, the users can transact directly and without any hindrance. The transactions are verified by network nodes and recorded in a public distributed ledger called the blockchain. The inventor of Bitcoin, Satoshi Nakamoto, is mentioned at all information portals. Although, Satoshi Nakamoto is the name used by the unknown person or persons who designed Bitcoin and created its original reference implementation.
It is the best way of peer to peer, electronic cash system. It is a boon for the ones who are worried to keep their money in cash form, for the college students who want to work at ease, for the new age couple, who likes splitting the money than the masculine figure, emptying his pocket. For the shoppers and the shopkeepers, this gift has made life easier than expected!
Recent developments have seen Paypal and Amazon, look at ways to enter the market and integrate with Bitcoin. It operates behind a veil of anonymity which creates suspension and mounts concern about its potential to be used for illegal activities. One of the rivals of Bitcoin is Ripples, which can transfer currency instantly and here for free, be it in euros, dollars, Bitcoin or Ripples.
It is through this system of payment, that cash can travel around the world. A lot of people from the world are supporting Bitcoin projects, including the founder of Paypal. It is also moving ahead to being used as a currency. The concept of smart money, has wide-ranging implications, from legal professions, banking, to the corporate organisations. It is a tool, being used to build new businesses or replace broken currency regimes. It is not just a threat for all middlemen out there, but also a realisation that a virtual currency is operating and heading towards changing the world, by its own means.
You can take our MyCaptain Finance & Stock Markets Workshop to understand more about it from our mentors.