What is Bitcoin?
Bitcoin is one of the most well-known forms of digital currency and was founded in 2009. Traditional forms of payment and physical money and coins are filtered through centralized banks and overseen by governments, whereas digital currency is completely decentralized and managed by a network of computers. It has been said that Bitcoin is the future currency and is set to become the new universal currency.
History
In 2008, a paper called Bitcoin¾a peer-to-peer electronic cash system¾was distributed by the founder, Satoshi Nakamoto; a false identity that is still not known today. Following the release of this paper, the bitcoin software was made public in 2009 and its transactions were recorded and verified on Blockchain.
Blockchain is a form of technology used for cryptocurrency transactions. It is a digital ledger that stores and facilitates the process of recording transactions and tracking them in a business network. It is made up of a network of computers that cannot be hacked, cheated, or traded without the owner of the said crypto allowing it. This is where it differs from traditional physical money, which is processed through centralized banks and governments.
The value of Bitcoin was yet to be established in 2010, when someone traded their digital currency for 2 pizzas¾which today, would have been worth more than $100 million.
From 2011 to 2013, Bitcoin rose in both value and popularity, which sparked jealousy from other entrepreneurs, who then created their own form of cryptocurrencies. Namecoin and Litecoin were among the first to emerge, and now there are over 1000 cryptocurrencies in circulation.
The idea of decentralized and encrypted digital currencies has become so popular that businesses have started to accept this as a form of payment. The price of Bitcoin has fluctuated throughout the years, just like the stock market, reaching as low as $300 in 2013. This low created losses for many who invested in this cryptocurrency, but then slowly, it started to rise again and increased in value, making those who continued to invest, a lot of profit and dividends.
Benefits
There are many benefits to investing in Bitcoin both as an entrepreneur and as the average Joe who just wants to make some money. Bitcoin is one of the most popular forms of cryptocurrency, with the potential for high returns in profits and dividends, meaning that what you put in, you will get almost double out over time.
There is also a level of protection from payment fraud when using a decentralized digital currency, as each transaction is stored on Blockchain and cannot be hacked, cheated, or erased.
Another advantage of using digital currency as a form of transactions and payments is that there is an immediate settlement when trading bitcoin for bitcoin or selling bitcoin for cash, including for international transactions, as the network of computers does not run in the same way that centralized banks do. This means that there are no waiting times and no conversion rates that are needed for these transactions, therefore, you are not losing any money when you are trading from anywhere in the world.
What about the future?
A lot of people have found success and wealth in Bitcoin, from when it first launched, right up until today. The CEO of Bitcoin, Jesse Powell, predicts BTC will eventually take over the world and become the universal currency for all nations to use. This would mean conversion rates and exchange rates would become nil and void, as everyone would be using the same currency.
It has been recorded by experts that Bitcoin could hit $100,000 in 2022, showing that the road ahead for Bitcoin is as bright and successful as its history. If you were to invest in Bitcoin today, you would see good returns and high profits, as the stock market continues to grow along with the digital currency wavelength. As the first form of cryptocurrency, Bitcoin still holds its popularity today, as many people continue to invest in the digital currency, in the hopes of becoming part of the many who have reaped the benefits over and over. Even if you are looking for a short-term profit, Bitcoin is a great investment vessel, as the high liquidity associated with it has little to no risk.
Conclusion
As we have seen with the stock market since it first began, there will be ups and downs, long runs and short falls, and losses and great successes when it comes to investing. However, the idea of decentralized digital currency has proven to be popular since 2009 and shows no signs of slowing down. Bitcoin is set to become a legendary cryptocurrency and form of payment, loved by the masses around the world. There is nothing to say that this crypto will not become the first universal form of payment, completely erasing conversion rates and exchange rates for international payments