If you were to ask anyone to name a digital currency, the first answer they will probably give you is “Bitcoin”. Bitcoin has been gaining momentum since 2009, offering new ways for people to transfer money, transact and make money.
What is Bitcoin
Bitcoin is a digital asset that you can freely transfer across the internet. It doesn’t exist in physical form. All you’ll have is a reference to your Bitcoin holding that you’ll store on a public ledger called Block Chain. This will keep a record of every bitcoin in existence and will record every bitcoin transaction. So, what really makes Bitcoin seem like one of the biggest breakthrough virtual currencies of our time?
Well, it’s probably because of the freedom you get from Bitcoin. You see, with our currency, we rely on trusted third parties such as banks and credit card companies. They keep track of our money as it moves from one account to another and we pay them for this process. Furthermore, we trust that their credits and debits will balance every month without even double checking. However, how do you know that the data they provide isn’t corrupted, flawed or fake?
You don’t. You just have to trust your banks
Now, a “financial system” that completely cuts out these middlemen could be cheaper, faster and secure. That’s were Bitcoin comes in. The block chain is public and there’s no central authority controlling it. It can’t get printed, forged or debased by governments at will.
Bitcoin could become a force to reckon with. A technology that replaces bankers and banks. This is just one of the many reasons it’s becoming more popular daily as a speculative investment and a currency. Bitcoin’s popularity is spreading so much that people and big companies are doing business with it.
You can literally buy most things – from furniture to flights – using Bitcoin. In fact, it’s slowly becoming a savings tool for some people. You can store your savings in Bitcoin and other cryptocurrencies. One popular way to do this is with a paper wallet that’s kept offline. You can read more about Bitcoin here.
Although Bitcoin seems to be somewhat experimental, it has survived since 2009. And, every day that it survives, it gains popularity and grows even more.