Wealth has always been omnipotent since civilization took its first steps. From being an entity controlled and distributed by central authorities, the monopoly over the properties of the money supply is slowly shifting. We have one entity to thank for this shift, Bitcoin.
So, what is Bitcoin?
In procedural layman terms, Bitcoin is a novel online payment system designed to ensure anonymity and decentralization in online transactions. A bitcoin is essentially a unit of money whose value fluctuates from time to time.
To understand this currency one needs to understand its origins and its implications.
Origins of Bitcoin
Bitcoin began as a ‘peer-to-peer’ electronic cash system designed by a man or group under the alias of Satoshi Nakamoto. While some reports have suggested Satoshi is Japanese, others sources have speculated that he is of a European origin using a Japanese alias.
In 2009, the network of this currency sprang into existence when founder Satoshi created the first block on the chain, mining 50 bitcoins consequently. The project was supported and adopted by many full-stack programmers such as Hal Finney and creators of bitcoin predecessors such as Wei Dai (creator of b-money) & Nick Szabo (creator of bit gold).
Nakamoto is said to have mined as many as 1 million bitcoins before leaving the project and handing over control to Gavin Andresen, a developer. He later became the only face of the otherwise secret bitcoin community.
Functionality of Bitcoin
As a normal user, a person can buy a bitcoin from a number of online forums which provide the same. The base amount one person can buy is one Satoshi.
A common misconception people have is that buying this currency is similar to investing in stocks or futures. Due to the limited supply against high demand, the price of this currency in driven up. In essence, its value is unlikely to fall in the foreseeable future.
Another question people generally have is how to use this particular currency. Many major retailers such as Shopify and Expedia accept bitcoins as a mode of payment. However, if one doesn’t wish to trade in it directly, they can also transfer this currency to their bank accounts as hard cash using any of the available wallets.
Need for This Currency?
Bitcoins have almost become an alternate way of earning a living for people. Traditional currency is premised on many global factors which have adverse effects on economies of developing and developed countries.
This currency is completely independent of all these factors and works on a purely mathematical basis. So while money in one’s bank might still be in danger due to a number of reasons such as inflation or recession, money in a bitcoin wallet will always be independent of any external factors. This is the reason why this new currency have become indispensable for the people using or dealing with them.