Bitcoin is the first Cryptocurrency introduced in this world by the mysterious pseudonym Satoshi Nakamoto back in January 2009. It is a decentralized currency that exists virtually and has no ties with the government. Bitcoin offers a lower transaction fee than any other traditional online payment mechanism. Furthermore, it is operated by a decentralized authority.
The name cryptocurrency came from the term Crypto because these currencies use cryptography to keep themselves secure. There isn’t any physical presence of cryptocurrency, so it keeps the balances on a public ledger that allows anyone to access the balance information. However, each of the records is encrypted within blockchains.
Hence, it requires a person to have profound knowledge of the blockchain mechanism to access this information. Furthermore, all bitcoins transactions are verified by a massive operation known as mining.
Mining is an expensive process, as it requires abundant energy and superior quality hardware and devices.
As mentioned earlier, bitcoin is not generated or issued by any form of government or banks and is compared to commodity value, and it doesn’t have any value at all. However, despite not having value or being a legal tender in any part of the world, bitcoin is very popular among people nowadays; it also has triggered the release of various other cryptocurrencies known as altcoins. It is abbreviated as BTC when transacted.
When bitcoin was first introduced in the world, it promised to change the world’s monetary system by optimizing digital currency as the universal mode of transaction. However, bitcoin has numerous scopes to offer to you.
Highly Risky yet Highly Profitable
A person who bought Bitcoin worth 10,000 back in 2009 would most obviously be a millionaire. It’s only recently that Bitcoin started to enjoy higher value. This was not the case initially. Its value in the initial days was pegged at $1. Still, the emergence of various altcoins and their rising popularity has resulted in the high demand for Bitcoin. Furthermore, according to analysis, only 21 million bitcoins can be generated from mining, influencing the demand for Bitcoin.
The current value of Bitcoin is very high, and i. Depending on the market, it might crash or get to the sky in the future. Simply put, it is hard to predict how the market will behave. So, investing in Bitcoin is quite a good idea, but you must understand how it works thoroughly. Furthermore, so many bitcoin trading platforms are available on the web, enabling you to invest in Bitcoin without any inconvenience. The bigmoneyrush.io gives you the leverage to trade in different cryptocurrencies.
And so, we have been witnessing a rise in the number of trading platform users.
Risks of Illegal Activities
As mentioned earlier, the Bitcoin transaction balance is stored within the blockchain. Furthermore, it uses cryptography to ensure security, fastness, and anonymity in each transaction, making it difficult to trace back to the origin. Due to this factor, it can involve changes in illegal activities.
To initiate the bitcoin transfer, a vast amount of information is required to identify the person doing the transaction. In simple words, it is just like the online money transfer procedure. However, in the case of Bitcoin, it requires the information of both parties to verify the sender and receiver and initiate the transaction. Due to the nature of the Bitcoin transaction, it also has provided the benefits of lowering the chances of involving bitcoins in Illegal Activities.
Transaction is secured
It is impossible to steal bitcoins because of the security it involves. Being a currency with no physical presence, bitcoins are not vulnerable to getting stolen or robbed. However, hackers can steal cryptocurrency from someone’s wallet, but only if the hacker has access to the private information of the wallet.
Low Transaction Fees
In standard account transfers or international purchases, fees and exchange costs are the most common things, and not to mention, they are pretty expensive. However, in the case of Bitcoin, it takes a low amount of transaction fees. It costs less because bitcoin is a decentralized digital currency and doesn’t involve any third party in the transaction process.