Bitcoin, hailed in some quarters as the future of currency, is having a rough week, with a flurry of rumors that China will shut down exchanges and the head of a major U.S bank calling bitcoin a "fraud."
Bitcoin has been around since late 2008 but it only started making the news in early 2013. It is a crypto currency and a payment system; its main advantage being that transactions are anonymous and peer-to-peer (i.e. made directly without an intermediary). Bitcoin's unique architecture is set-up in such a way that their creation (or 'mining') gets progressively more resource-intensive and total production will be limited to 21 million Bitcoins.
by The Telegraph on 21st Oct 2017 • 20 Views
Bitcoin is a digital currency created in 2009 that uses decentralised technology for secure payments and storing money that doesn't require banks or people's names. It was announced on an email circular as a way to liberate money in a similar way to how the internet made information free.
Bitcoin is the first and most prominent cryptocurrency - an alternative digital currency which relies on cryptography for its creation and transactions. Prevailing electronic payment systems depend on third-party financial institutions to process transactions. This model increases transaction costs and still cannot eliminate the possibility of fraud. Hence Bitcoins, based on cryptography instead of trust, were proposed to allow people carry out transactions directly without a trusted third party.
Technology has changed the ways by which people buy products and services. People require faster and easier ways to exchange and use units of currency. In ancient civilizations, people primarily relied on metal coins, which was followed by paper currency. Then came credit cards. The smartphone revolution along with the presence of Digital wallets and near-field communication technology has ushered in even greater ease of use, allowing us to carry all of our credit card information in our phones. The last 5 years of this decade saw the rise of modern currencies that would eliminate the involvement of any third parties such as banks. These currencies are hinging upon the internet, the most widespread and omnipresent network ever invented. Of all these currencies, Bitcoin has gained the most widespread attention, for both good and bad reasons.
All people must be aware of the Mt. Gox trading exchange. It was one of the largest Bitcoin exchange in the world. It was based in Tokyo. Bitcoin is a form of virtual currency that provides way to anonymous peer-to-peer financial exchanges. From last time, the market participants are concerned about trading in virtual currencies. It all started with the major collapse of Mt. Gox trading exchange in February 2014. So, what do you think? Is it good to trade in Bitcoin or should the market participants avoid it? Let us check out the pros and cons of using Bitcoin: