There was a time when Bitcoin was known as a Ponzi scheme which thoroughly means, “Scam”. Back in 2013, people didn’t know, what a Bitcoin was? Or the language was too techie for them to understand. Later, as the months passed, people started understanding the term, “Bitcoin” and some of them today have even started earning in Bitcoin and trading the cryptocurrencies in the share market.
I was one of you, who didn’t understand, what exactly is a Bitcoin? Here, I would like to share the idea and some tips and importance of Bitcoin. Let us know, about Bitcoin in simple terms-
What is Bitcoin?
Bitcoin was once discussed among the academic techies as the idea among the scholars and top notch persons. Later, it became a hushed talk among the law authorities for tackling online drug trades and transactions. Not just these, it is the craze for those, who wanted to make quick bucks and get rich overnight.
People generally buy Bitcoin for any sort of reasons. It can be anything, a store value, transactional or a trade medium, and for some, it is an idea that could change the future of economics of any country completely. It is a digital currency, which cannot be touched, or felt, but can only be used through online portals.
It has got no middle men controlling the rates and value, just like for other currencies. Each and every Bitcoin (1BTC) is equal to a different amount varying from country to country and currency to currency. You can just know the value of a single Bitcoin (1BTC) if you have, with the currency of any country. Trust me, Bitcoin has become people’s wish and people are very much interested in it.
It is just like using your credit card or debit card, or net banking for online shopping and purchases. It just sits in the cryptocurrency wallet (which you have to create, to deposit your Bitcoin into it).
A cryptocurrency wallet is like your bank account. You cannot feel the money which you have in your credit card, can you? Bitcoin comes, into that category-an untouched money! I would say.
Bitcoin- The Transactional Medium
One of the most important purposes of Bitcoin, from the original make, was as a transactional mode or medium, which is used in the place of traditional currency. It can be stored in a digital crypto wallet such as Coinbase or Zebpay and can be sent to anyone across all country borders, and can be used to buy anything and everything online. It has been used like this for over the years.
Bitcoin- Store of Value
Back then, when it was first made or created, it had no value. The coins were used like anything, and no negotiations were done even as they had no intrinsic value. Can you believe, people, offering 10,000 bitcoins for a single cheese pizza? Later, the more people started using it, the more its value increased and it started becoming popular too.
The whole value of a single Bitcoin has been totally made a U-Turn. Today, a single BTC is worth more than $6000 and it is predicted that it would raise more in the future months. And there is a saying that BTC may even grow to seven figure value by 2020.
Features of Bitcoin
1. Decentralized Already
The main motto of the creator when creating Bitcoin was the network independence from the local and government authorities. A bitcoin is designed so that every individual, every business and every mining machine involved in transactional verification becomes the portion of a wide network.
Not to worry, even if some part of the network is falling, the money is on the move.
Nowadays, our bank knows everything about us, like everything. Bank records have all our personal information such as clients name, address, age, credit history, payments, our cash balance, phone numbers, photographs, our monthly income, and our habits too.
Habits? Strange right? But this is not the case, with Bitcoin. The crypto or a BTC wallet, where your bitcoin is stored, doesn’t inquire about all these personal details, just enter your email id, and password and you can spend your BTC without any restrictions. And moreover, BTC cannot be tracked by any authorities too. Whereas, some may argue that these cryptocurrencies, can be the reason for terrorism, drug trades, black money, and other dangerous activities.
The transactions that you do is stored in the Blockchain. Theoretically, if your wallet address is publicly used, no matter who the person is, the person can easily tell everything about your bitcoin wallet, the balance in it and all your past transactions too by reading the Blockchain ledger, which is quite not good. I would not allow some stranger to know my BTC balance.
The Bitcoin is the speediest currency and the network is unbelievably fast in processing payments. It normally takes just a few seconds to see the balance or the coins in your wallet or someone else’s wallet. The bank transfers take several days when it is an international transaction.
Some Benefits of Bitcoin:
1. Irreversible Transaction
If you own a business, then you are lucky! Merchants who are already transacting with BTC might be knowing, that when you accept a credit or debit card mode of payment, due to some issue some payments get reversed and guess what? You have already sent the product to the customer.
Your product just got delivered and you received no payment in the bank transactions. But, not here! The Bitcoin transactions that you do or accept, are irreversible, once sent is sent!
2. Zero Paperwork
You absolutely don’t have to do any paperwork. Any individual or business from any country can receive and send payments to anyone around the globe without any paperwork. There is no age limit, even a child can accept and send BTC.
You don’t need any ID card, address proof or any verification proof to open an account just like you do in banks. You just have to download the Bitcoin wallet software and generate a BTC address.
3. Cheap Transactions
The transactional fees are very low and very beneficial when it comes to international transfers. You don’t have to worry about the sending fees or receiving fees, it is affordable. It is the cheapest method of sending and receiving the moving money.
Credit card or debit card transfers takes around 3-5% for a single transaction and it is costly for a startup like mine. International transactions can take up to a week, depending on the network and local transaction are done in a fraction of a second.
Should I buy Bitcoin? If yes, then How?
Yes, you can buy BTC, as there are predictions that its value is going to be a seven digit figure by 2020. If you see the BTC chart, you will see only its growth and no fall until today. It would be a good investment if you bought a BTC.
You can buy a BTC through a BTC wallet. A BTC wallet is a digital wallet, used exclusively for BTC. You will find many on the internet. Choose wisely and the popular one. The popular Bitcoin wallets such as Coinbase, Blockchain, and several other wallets,
let the user link an existing bank account into the wallet (don’t worry, its safe) to deposit and withdraw funds for the use of buying and selling the Bitcoins. There are other ways, such as buying or selling through Bitcoin Depot that allows users to do cash deposits at selected ATM’s, but in some countries only.
Is Bitcoin a Good Investment?
Fortunately, yes. It is a good investment as per today’s stats and bitcoin charts. The BTC has not fallen since months, so as per the graphs of previous months, it can be predicted that it is a good investment, if did today or in the next couple of months.
The good side is the investors who have purchased, have done just great and are in profit side so far. Well, I would not suggest someone invest their gratuity or their retirement lump sum on it, but yeah, if someone wants to take a speculative decision, you can just invest and watch.
Importance of Bitcoin
The whole world has now become digitally awake. The Bitcoin is a part of this digitalization. While using BTC you will find that the transactions are really speedy and fast. You are receiving money and sending money in no minute. It also enables people to maintain their records without worrying about the data breach in Data privacy.
The beneficial part is that people can create en number of BTC wallets without having to give any identity proofs and address proofs, just like doing in banks to open an account.
The business merchants and users don’t have show-off their business agreements or company details to do transactions using BTC. Hence, the business financial transactions can be in private without any fear. Bitcoin will never result in inflation.
It is very different currencies too. Inflation happens when the total amount of cash in the system upgrades and it is dependent on the country’s demand and supply. But, in the case of bitcoins, there is no possibility of inflation as bitcoins are scarce and interchangeable.
Bitcoin and Business
BTC is important because of its technology which makes it work. This technology is known as Blockchain computing. The Blockchain computing is a system which has all the transaction records which are referred to as blocks. It doesn’t care where the sender or receiver physically exist when you do some transactions.
It pays zero attention to the logistical part of any business. It supports any number of amounts ranging from micro payments to huge amounts. It is zero percent hackable by the hackers. Yes, it is safe and secure when it comes to transaction, records and the past history. There will be no payment disputes as bitcoin is digital and it works as more than credit.
There are no taxes to be paid when you are receiving and sending bitcoin for your business. As a merchant, you can benefit a lot from sending and receiving bitcoins. A single country cannot determine a bitcoin value. It cannot be counterfeited, as every bitcoin user has the strange, ledger of all the users.
This system makes it that fake bitcoins cannot really exist with this technology growth. Bitcoins can only be generated with legal, complicated, energy-intensive procedure called BTC mining. You will find many BTC miners in the internet world, but some of them are really fake and scam, but some sounds legit.
Bitcoin is something which will never disappoint you. You shall invest, trade, use bitcoins as per your will and wish. The bitcoin creation is the first globally distributed immutable record of human progress towards growth and is predicted that it will last for centuries and millennium.
The cryptocurrencies and the blockchains are evolving to become the generalized computing programs and systems. The Bitcoin is now in its trending lists of currency and is still growing towards the success. Let us hope for something best with bitcoin.
Bitcoin is the most modern currency and it will last for many decades. With this currency evolution, Blockchain Technology has enhanced towards almost every business such as finance. Banks, e-commerce and many others. Let us hope that businesses will evolve more with this technology.