What is Bitcoin?
Bitcoin is simply referred to as a peer-to-peer, open-source digital currency. But why do people really see it as the future currency? It is introduced on the world in 2008 for online transactions. And it was the beginning of something spectacular. Because it is a currency without a government, something indispensable and very important.
Simply, an electronic or digital coin that functions on a peer-to-peer basis. Meaning that it is decentralized without any central authority controlling it.
You can send this currency of the future to another person without the government or a central bank trying to track it, like the currency notes. The fact that you will be getting physical currency notes with the similar anonymity ascribed to it is the great thing.
Each transaction or trade carried out in the Bitcoin economy is registered in the “blockchain”. Bitcoin uses blockchains which is a public distributed ledger, instead of depending on the third party.
In order to ascertain that similar Bitcoin has not been spent in the past, new transactions are checked against the blockchain, thereby eliminating double spending issue.
Who Can You Send this Currency in the Future to?
You can send Bitcoin digitally to someone having a Bitcoin address in any part of the world. An individual can have numerous addresses for different uses such as business, personal and lots more! The recipient can spend the Bitcoin immediately it is received. One thing to note here is that once you have given this currency away, you cannot get it back because it is not printed currency. Meanwhile, the recipient can choose to give it back to you.
How to Generate a New Bitcoin
A business or an individual generate a new Bitcoin to trade by using software power to unravel or solve a mathematical problem that makes the blockchain more protected.
How the Cryptocurrency System Work
The way this cryptocurrency system work is that your deal is added in the blockchain and relay to the network when you send a Bitcoin to a beneficiary. The transaction is validated by a computer network with the use of an algorithm for the transaction to be unchangeable.
In addition, the blockchain makes sure this same Bitcoin is not spent two times by the same user. Immediately a transaction is validated, it is added to others generate a block of data for the ledger.
Why Bitcoin is the New Currency of the Future
The fascinating thing about Bitcoin is not what it is today. The fact that this Fiat experiment is gaining popularity and acceptance in the digital currency market is what makes powerful and adjudged the currency of the future.
Without a doubt, Bitcoins are traceable, harder to steal, and more portable than paper money. The Bitcoin experiment had proved successful, making it a matter of time before the government substitute paper with more secure, traceable digital currency like Bitcoin.
Moreover, it can be really difficult to hack a Bitcoin and with traceable code entrenched in the process of mining; you can easily trace the transaction of the digital currency.
That future is coming when Bitcoin will be pulling weight in the digital currency market, despite that it is a bit slower to come than most enthusiasts think. But with all honesty, Bitcoin must become easier for vendors and consumers to use or else it will be an unbelievable technology that will flop.