The world is changing at a rapid pace. The digital revolution has transformed the way we do business and interact with each other. More and more people are getting used to using digital currency as a payment alternative and a hedge against inflation. The rise of cryptocurrency and blockchain technology has created a new phase in which traditional banking systems face new challenges. Bitcoin, the first decentralized cryptocurrency, has brought many changes to the financial sector. It has opened up an opportunity for people to transact business or invest anonymously without much fuss. However, its meteoric rise from obscurity to stardom in such a short period has given rise to fears that it could be just another bubble waiting to burst. Some even call it the ‘fake’ version of money, which is worthless once printed out into billions of pieces. Whatever your opinion on cryptocurrencies, one thing is clear — they are here to stay and will impact our economy sooner than later. If you intend on taking advantage of this change before everyone catches on, read on for some helpful information about Bitcoin and how you can prepare for its inevitable rise in value or in case the crypto market collapse.
What is Bitcoin?
Bitcoin is a digital asset and payment system based on an open-source algorithm. It was invented in 2008 with the objective of establishing a decentralized electronic currency. Individuals, organizations, businesses, and governments can use Bitcoin for payments to each other or store money in digital wallets. The total number of Bitcoins in circulation is limited to 21 million. It’s important to note that Bitcoin is not controlled or overseen by any central authority or organization. It’s a decentralized currency. The Bitcoin network depends on a peer-to-peer system that verifies transactions and controls the issuance of Bitcoins. It works like a peer-to-peer network, where users download a client program and broadcast transactions to other users. The network also uses a distributed ledger technology that allows users to create and store a transaction record or a “ledger”. When two users exchange Bitcoins without any intermediary, the transaction is completed.