Some people are far more married to certain ideologies than others. We see it everywhere. I see it with the older generation at church not liking the newer music. Or, for example, the National League baseball purists despising the idea of the designated hitter. How about even simple things like when Facebook or Twitter changes the user interface? Don’t mess with my timeline! Why then should it be any different for bitcoin or any cryptocurrency? I talk to people every day who are educated and successful and yet still can’t wrap their heads around cryptocurrency. For centuries people have had it ingrained in their brains that money issued by the government meant it had value. Fiat currency (money issued by a government – USD, Euro, Ruble, etc) has this connotation behind it that because the government printed this it MUST be of value. While it is true that our dollars have value, most people think it is because it is backed by something.
Forgery of the cryptocurrency is not possible as the whole system is based on hard core math and cryptographic puzzles. Only those people who are capable of solving these puzzles can make changes to the database which is next to impossible. The transaction once confirmed becomes part of the database or the block chain which cannot be reversed then. Cryptocurrency is nothing but digital money which is created with the help of coding technique. It is based on peer-to-peer control system. Let us now understand how one can be benefitted by trading in this market. Cannot be reversed or forged: Though many people can rebut this that the transactions done are irreversible, but the best thing about cryptocurrencies is that once the transaction is confirmed. A new block gets added to the block chain and then the transaction cannot be forged. You become the owner of that block. Online transactions: This not only makes it suitable for anyone sitting in any part of the world to transact, but it also eases the speed with which transaction gets processed. As compared to real time where you need third parties to come into the picture to buy house or gold or take a loan, You only need a computer and a prospective buyer or seller in case of cryptocurrency. This concept is easy, speedy and filled with the prospects of ROI. The fee is low per transaction: There is low or no fee taken by the miners during the transactions as this is taken care of by the network. Accessibility: The concept is so practical that all those people who have access to smartphones and laptops can access the cryptocurrency market and trade in it anytime anywhere. This accessibility makes it even more lucrative. As the ROI is commendable, many countries like Kenya has introduced the M-Pesa system allowing bit coin device which now allows 1 in every three Kenyans to have a bit coin wallet with them.
There’s virtual money, and then there’s Bitcoin. The super geeky Bitcoin is a mathematically-derived currency that promises to change the way people use money. Bitcoins are not real coins-they’re strings of code locked with military-grade encryption-and people who use them to buy and sell goods and services are difficult to trace. Along with anonymous drug dealers, Ashton Kutcher and the Winklevoss twins have reportedly jumped on the bandwagon. There’s something to be said about using currency that isn’t regulated by the government or banks, doesn’t come with the usual transaction fees and is impossible to counterfeit. Bitcoin also promises to be disaster-proof, because you can’t destroy numbers in the same way that you can destroy gold reserves or paper money. Bitcoin is a digital currency created in 2009 by a developer hiding under the pseudonym of Satoshi Nakamoto (supposedly a Japanese guy who has perfect command of American English). Bitcoin is decentralized, meaning it is not controlled by a central authority like a financial institution, country, government or individual. It is peer-to-peer and open-source, distributed across the internet from computer to computer, without need for middlemen.
Besides, there are brokerage fees, commissions, paperwork and some other special conditions that may apply as well. On the other hand, the cryptocurrency transactions are one-to-one affairs that mainly take place on some peer-to-peer structure of networking. This thing results in better clarity in setting up audit trails, greater accountability and less confusion over making payments. 3. Transaction fees: Transaction fees often take enough bite out of the assets of a person, mainly if the person performs loads of financial transactions every month. But as the data miners do number crunching that mainly generates different types of cryptocurrencies get the compensation from the network involved and therefore here the transaction fees never apply. However, one may have to pay a certain amount of external fees for engaging the services of any third-party management services to keep up the cryptocurrency wallet. 4. More confidential method of transaction: Under the credit/cash systems, the complete transaction history can become a reference document for the credit agency or bank involved, every time while making transaction. At the simplest level, this might include a check on the account balances to make sure the availability of adequate funds.
There is a maximum number of BitCoin that can ever be generated, and that number is 21 million. Your own BitCoin are kept in a file (your BitCoin wallet) in your own storage – your computer. The file itself is proof of the number of BTC you have, and it can move with you on a mobile device. If that file with the cryptographic key in your wallet gets lost, so does your supply of BitCoin funds. And you can’t get it back. How much is it worth? The value varies based on how much people think it’s worth – just like in the exchange of “real money.” But because there is no central authority trying to keep the value around a certain level, it can vary more dynamically. The first BTC were basically worth nothing at the time, but those BTC still exist. As of 11AM on December 11, 2013, the public value was $906.00 US per BitCoin.