The term Bitcoin has been used a lot recently in the news, even I bought some recently. You may be unaware of its existence and rise in popularity, but it should be something you are familiar with. To help in your research, below is a synopsis of the digital currency.
Definition and Details
A bitcoin is a digital currency and payment system that was created in 2009. The idea behind the currency is that Bitcoin is open-source; its design is public, nobody owns or controls Bitcoin and everyone can take part. It uses peer to peer technology to facilitate instant processing. The system works without a central bank or single administrator so it is the first decentralized digital currency of its kind. The balance sheet or shared public ledger known as the “block chain” is what the currency relies on. All transactions can be found on this ledger, transactions are referred to as “private keys”. Bitcoin mining is the act of releasing bitcoin into circulation. Many online businesses are currently offering the bitcoin as currency, like online casino bitcoin.
These are the basic fundamentals of bitcoin. The system is very complex and technical.
The Beginning of Bitcoin
The phenomenon started in 2008 when the original domain name is registered (bitcoin.org). In the same year, an anonymous individual known as Satoshi Nakamoto released the start of bitcoin and the first bitcoin was “mined” in the beginning of 2009. Many believe the creator is anonymous because of their wealth and value. They do not want to be in the public eye.
The idea of the Bitcoin seems very promising but there are also many risks involved that have many concerned. The first, and most obvious, is the regulatory risk. The foundation of the Bitcoin is that there is not a central bank or single administrator regulating the whole operation which could lead to problems. Black market transactions, tax evasion, money laundering and other illegal activities could form in an unregulated market which is concerning. Also, with the entire exchange being digital, it could lead to security risks. Anything digital runs the risk of being hacked. Since it isn’t regulated and does not have a governing body, it also runs the risk of not being insured. Financial institutions where our money is typically held are required to be insured so nothing happens to our investments. With Bitcoin not being insured, it means you can lose its value and you would end up with nothing.
Regardless of the risks involved, it seems like digital currency is becoming the way of the future. It is very complicated and complex to grasp but it is something all of us need to research and learn a little about to understand what our possible future could hold.