In recent years, the value of Bitcoin has soared by thousands of percent and many see it as the currency of the future that will revolutionize the human economy. However, the high volatility in Bitcoin trading still makes it a risky asset for speculative investment. Throughout human history, the use of money has undergone several major revolutions. The shift from barter to the use of representative money in the form of beads, oysters or bean grains, the issuance of precious metals such as gold and copper, then the advent of silver and cheap coins! Each of these revolutions has radically changed the forms of human trafficking and the human economy. Many believe that we are today witnessing the budding of the next money revolution – the Bitcoin revolution! Firstly though, you may want to look at some crypto regulations.
What is bitcoin?
Bitcoin is a digital currency developed in November 2008. By a mysterious, and possibly fictitious, figure named Satoshi Nakamoto. Satoshi, who wrote the mathematical algorithm of Bitcoin and developed the initial software for creating Bitcoin coins. He wanted to create an innovative currency that would not depend on any central monetary system. And would not be exposed to inflation or manipulations such as money printing. Unlike common currencies, such as the dollar or sterling, Bitcoin is a completely independent and decentralized currency. It is not dependent on any country or any major body. Payment in Bitcoin is made directly between people without the need for any intermediary such as a bank or credit company. That is, if someone wants to transfer to Bitcoin 2 Bitcoin they simply transfer the money directly from a digital wallet to a digital wallet.
Unlike bank transfers, transferring bitcoin from wallet to wallet is done almost instantly. All Bitcoin transactions are recorded anonymously and encrypted by a string of digits and letters in ledgers. These are distributed in a large number of computers. This distributed communications network, which aims to verify and secure transactions. It is called a blockchain. Therefore, Bitcoin is also called the “Internet of Money”. It is changing the way we value money, too. Although all bitcoin transactions are transparently documented by all users, it is not possible to trace the parties who were partners in the transaction. Therefore, the future of Bitcoin will also depend on the degree of trust of the financial community and the public in it. Bitcoin is attracting growing public interest. More and more businesses are enabling payment via Bitcoin. More and more financial institutions and banks are exploring how it can be adopted. In April 2017 Bitcoin was first recognized in Japan as a means of payment. The buzz around Bitcoin is big now, but quite a few more bumps are expected on the way to making it an accepted international currency. As the trend of adopting Bitcoin continues, the value of the currency is expected to rise and stabilize. However, as a target for speculative trading for day traders it seems that it is still a very risky asset.