Bitcoin is a cryptocurrencythat was created a post-financial crisis between 2008-2009 by a legendary person with the alias name Satoshi Nakamoto. It can be used for hotel/ accommodation bookings on Expedia, online shopping of properties and assets Overstock, and buying games from Xbox. Later it gained momentum in 2017 as its price saw a huge hike due to its unexpected globally perceived popularity. You must know several things about cryptocurrency, what it is, its advantages and disadvantages.
What is cryptocurrency?
Cryptocurrency is purely electronic money that involves cashless transactions. Unlike traditional fiat currency (such as USD, Euro, etc.), it is secluded from other central financial bodies of control, i.e., it isn’t regulated by any of the central authorities; thus, it is not limited to a specific authority. Cryptocurrency transactions do not involve middlemen viz. financial or government body.
Cryptocurrencies are heavily based on blockchain technology. Blockchain is an isolated ledger of peer-to-peer transactions. For example, Bitcoin has its encryption techniques and monetary implications to ensure currency’s safe and ethical trade. Under blockchain technology, one can confirm their transactions without any legal or central authority for clearance.
Like other cryptocurrencies, this one also comes with its pros and cons, which are as follows.
The following are the several benefits of using the bitcoin cryptocurrency-
- Self-Regulated – Cryptocurrencies are decentralized, i.e., no sole authority can manage or regulate the price of a commodity or currency. Instead, people of the peer-to-peer trade control the currency and its credibility.
- They’re safe and secluded – The isolated blockchain technology is a secure platform for the currency trade as it offers at large the privilege of secrecy for transactions.
- They’re quick and profitable – Crypto transactions need no third-party consent and ensure quick and instant trading without any exorbitant fees to be paid.
The negative sides that you may face while using the bitcoin crypto are as follows-
- They’re unstable – Since no solitary central authority can amend the value of cryptocurrencies, it’s so damn easy for small groups of users to manipulate the unfettered market. Thus, the prices are subject to a rapid rise and fall, making them an unstable platform for a venture.
- Vulnerable in terms of cybersecurity – Once a person loses access to one’s private cryptocurrency wallet key, one will lose all his earned funds and stocks. Also, with the advent of unethical crypto codes, lots of money has been lost through hacking.
- Require intensive energy – The process of learning crypto trade and stock mining for cryptocurrency is highly energy-intensive. As such, it can have overall negative impacts.
Bitcoin is a popular cryptocurrency that includes fund transfers, potential trades, and many other business activities in no time without requiring the consent of banks or financial bodies. It comes with its advantages and disadvantages but has still not lost its essence in the financial markets worldwide, though its value takes frequent leaps and bounds. This is a quick discussion over bitcoin.