Bitcoin is a digital or virtual currency. It is exchangeable or purchased by using a computer or mobile application. It has no physical existence. In 2008, an unknown team named Satoshi Nakamoto created Bitcoin. He was the author of the Bitcoin White Paper. This paper introduced the idea of bitcoin to the World. In 2009, the first Bitcoin launched by creating the first blockchain as a test transaction. In the first actual transaction of bitcoin, a person purchased pizza worth $25 using 10,000 Bitcoins. That pizza delivery gave an estimate of the first bitcoin price value for World which was 4 Bitcoins/penny. Sounds interesting, doesn’t it? Well, in this post we will talk a little bit about Bitcoin: history and future.
How does Bitcoin Work?
The bitcoins currency does not physically exist as metallic coins or pieces of paper. Computer application digital wallet stores bitcoin. The owner of Bitcoin can exchange bitcoins for making transactions such as purchasing things or exchanging money. Each Bitcoin has information about its transactions in its blockchain to check the history of a Bitcoin. Each Bitcoin has two unique keys called Public key and Private key. Both of these keys are based on numbers. When the owner wants to receive money public key is shared as an identity of the owner. The private key is the owner’s property it is a secret key. It is used when a person wants to spend bitcoin.
Is It Secure?
Bitcoin is more secure than physical money as it has no physical existence it can be used by the owner of bitcoin only. The blockchain of a Bitcoin helps in protecting it from theft or any kind of fraud. Bitcoin security is easy to maintain because a public key is linked with a bitcoin on every transaction. That shows the ownership of Bitcoin due to which no one can steal the bitcoin to use it.
Benefits of Cryptocurrency (Bitcoin)
Digital currency makes transactions easier especially international transactions. Bitcoin help in making transactions easier and efficient. Money transfer rates are not applicable as banks are not involved in bitcoin transactions. This was the main idea in creating Bitcoin to minimize transaction costs. Bitcoin is very secure as it has physical theft risk. Bitcoin is difficult to steal due to the unique information (private and public key) that is the owner’s property so it can be secured from hackers.
Evolution of Bitcoin. History and future
According to the History of Bitcoin after the first real-world transaction of Bitcoin in 2010, the bitcoin price value was 4 bitcoins/ penny. After one year, at the start of 2011 1 Bitcoin price value was $1. In 2013, one bitcoin was equal to $200, but it reached up to $1000 by the end of 2013. Bitcoin has faced up and down during the journey. After 10 years of the first transaction, the Bitcoin price value reached $19.650 in December 2017. Bitcoin’s price value is increasing day by day the growth is more than expected by economists when it launched. Today in 2021, just after 11 years of its first transaction one Bitcoin is worth $37.097. It is far more than the value before 11 years. We can see that Bitcoin has a history, but also a great future.
Future of Bitcoin
The future of Bitcoin is unpredictable as this currency has no physical existence but according to the history of bitcoin, it can be assumed that bitcoin price value will increase day by day but the ratio of increase in bitcoin price value is difficult to estimate.
Bitcoin investment risk
Cryptocurrencies such as Bitcoin is based on an idea which can be correct for some time, but it can give wrong results at some time in future which can give loss to investors. Bitcoin has technical risks as well because the currency running in the digital world can get affected by issues in technology. So, the investors have to be vigilant if they try to invest a handsome amount in Bitcoin. This is a broad outline of what Bitcoin is all about. With an analysis of its value, we can invest wisely. Okay, that’s all for now. Before I say goodbye, I invite you to check out our website. To keep up to date with the latest technology news. Bye!