Bitcoin, a new digital currency
created in 2009 by an unknown person is an electronic currency also known as
‘crypto currency’. The transactions made with no middle men, i.e. no banks,
make it distinctive. As there are no transaction fees or any other such
formalities, it has gained huge popularity across the globe. Nowadays, more and
more merchants have started accepting them. It symbolizes the beginning of era
of cashless transactions and point toward a future where currencies may take
digital form some day or the other.
Bitcoins are a form of digital
public money, whose value is derived from the computational solution of cryptographic problems.
The transactions are recorded and secured as a public-private key cryptography
on a decentralized peer to peer client network by millions of computer users
called 'miners'. Nowadays, one bitcoin is currently worth 600 US dollars
(approx.). Also, the world has bitcoins worth 1.9 billion USD at present and
approximately 2 billion USD more have to be created in the future. Check out
the various reasons how bitcoin currency has converged to make a real media
sensation.
1) Bitcoins are neither produced
by any central bank nor are they regulated by any government. So, it
is much clear that there is
no banks ‘log-in’ for your money transaction
and hence, government tax agencies and the police are unable to track your
money. Due to the lack of government oversight, bitcoins have emerged out
as an important tool for contraband trade and money laundering. A
number of wealthy criminals started buying bitcoins in large volumes. This also
caused their value of to touch the all new heights in the last 18 months.
2) Bitcoins are
affecting the storage methods of the personal wealth greatly. The initiation
of printed money handed over the power of currency to a central province and diverse
banks across the globe. Printing, storage, movement, etc. of the virtual money
is carried out by such banks and they charge the users for their varying services.
Bitcoins makes a difference; they are designed to hand over the control
of personal wealth back to the individual users. They hold actual packages
of complex data that have a value in them, not like the paper balances that just
promises to have a value.
3) Bitcoin irreversible
transactions: Each one of us is aware of the conventional payment methods, for
example bank drafts, cheques, credit and debit card charges, or online transfers.
All these services serve the benefit of being insured and also they are
reversible. But, this is not the case with bitcoins. The transaction
pursued every time with bitcoins change wallets and the result is final or
irreversible. In short, there is no insurance protection of the bitcoin wallet.
Once the wallets hard drive data or the wallet password is lost, the complete wallet's
contents are lost forever.
Undoubtedly, bitcoin is quite
resourceful and elegant, but it also contains some sort of basic flaws that
makes it dubious for the world to accept it presently!
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