If you are buzzed off with all the hype going around in the name of Bitcoin, which does not ring a bell to you, well, it’s high time to update the knowledge-scape about Bitcoin, the big buzz of the era, and cryptocurrencies, the next-gen currency system. Bitcoin is nothing but a set of programming codes designed by a developer under the pseudonym of Satoshi Nakamoto in 2009. Bitcoin is a digital currency with no physical existence, and any government or central authority does not govern it. Every new official trading platform is mined by solving extremely difficult programming puzzle works, which is done through advanced computers.
Bitcoin and Blockchain Technology
Blockchain technology is designed based on a chain of data blocks that are immutable. This ledger holds a comprehensive database of each transaction in Bitcoin, which has been made since its introduction in the cryptocurrency world.
The inherent characteristic feature is that this ledger is decentralized and immutable. Since it is a peer-to-peer network and is a public ledger, there are different modes of operation from which participating members of the Bitcoin community record every transaction, mining and feeding it to blocks.
However, even though it’s publicly accessible, once data is recorded, it cannot be changed or tampered with. Every participant at every node across the network is vital in validating every transaction, such as fund transfers, trades, mining, etc. However, no transaction can disappear, despite which many hackers have successfully anonymously stolen digital currencies. Therefore, crypto exchanges are nowadays more stringent with their security policies and measures.
Fast Processing of Bitcoin
Traditional transfers of funds operated through central authorities like banks need to go through a lengthy verification process. Therefore, they take time. However, Bitcoin, in comparison, is much faster. Since every crypto transaction in a blockchain is immutable and cuts off the need for a middleman to process it, the entire process of transactions and transfer of funds is easier, faster, and more convenient.
It is quite an obvious fact that it is difficult to accept when you are not accustomed to or known to a service or system. After the launch of the first cryptocurrency, that is Bitcoin, and it took a bit of time to kick start, to get the market ready to accept this new digital currency. Over mere 13 years, Bitcoin has made huge achievements with e-commerce and even physical stores, restaurants, and salons, accepting cryptocurrencies against their services.
There are a lot of big brands which has changed the game for Bitcoins by accepting Bitcoin as payment for their services as well as by investing in Bitcoins. Microsoft, Overstock, Amazon, and PayPal are worth mentioning who played a vital role in lifting the market value cap for Bitcoins with their vital business decision of investing and accepting Bitcoins.
It is not false that there have been setbacks for Bitcoin too. For example, at the beginning of 2021, Tesla, the automobile manufacturing brand, announced to accept Bitcoins for their new range of Tesla cars. However, soon around mid of a year, Elon Musk, the owner of Tesla, declined his plans to accept and invest in Bitcoins, which led to a great price drop of Bitcoins in August 2021. Another instance is the governmental ban imposed by China on cryptocurrency investments and transactions throughout the country which also impacted the growth rate of Bitcoins.
However, potential good media reports were also highlighted in the recent past, like the Ukrainian government spending $15 million of donated cryptocurrency on different needs and supplies for the military. Besides, small-scale and mid-scale businesses are prominently taking a progressive step in accepting cryptocurrencies for services.
Approximately 40% of military equipment suppliers, food packages, food chains, protective gear, and other military equipment accept cryptocurrency throughout Europe and the US. Cryptocurrency platforms are also exhibiting potential growth of investors in crypto trading. According to a recent survey report, the global share and size of the digital currency market are projecting a growth trajectory of $1.44 billion in 2020 to an estimated rise of $2.73 billion in 2025.
Wrapping it up !!!
Here we have highlighted all the key developments in the crypto world. You should always refer to all such developments when planning investment in the crypto market.