Is Bitcoin Really the Future of Money?

The craze around the most popular cryptocurrency has introduced just about everyone to an entirely new concept for anything from earning through to digital money and even blockchain. Over the last ten years, the currency has shown incredible growth, making just about everyone want to get in on the huge earning potential by mining or by taking advantage of the currency as an investment.

If you follow social media, you would’ve seen some posts about people turning into millions from small investments, even teenagers becoming instant millions by investing money they got from their parents for birthdays.

There’s no doubt about it, the huge increase in value around Bitcoin has made it amazingly popular, especially with the huge price spikes in the last few years. First, it started at less than $0.10 per coin, and by the time most have heard about the coin, it was close to the $20,000 mark, making instant millionaires out of everyone who was brave enough to invest a $100 or more. Not long off to the massive price increase, the coin had a rather serious dip, causing the currency to decrease by more than 50%. However, it still remains well over $5,000, making it the most valuable currency in the world.

As some of you would know, the currency was created to cut out all the middlemen, meaning banks and other financial institutes that control our money and benefit from it. With blockchain technology and a decentralised platform, the Bitcoin system works only with the users involved with it, which is simply the basics of it.

With everything in place, will Bitcoin really become the next international currency?

When we look at the overall state of Bitcoin, we can see that it’s becoming less and less popular with businesses around the world, especially after the major dip in value not so long ago. It’s also important to remember that the value of Bitcoin isn’t regulated, and it can be extremely volatile, making it a difficult currency to work with, especially when it comes to businesses.

Since the major dip in value, more and more businesses that used to accept Bitcoin as a payment option now avoid it, which isn’t just related to the value of the currency, but the scams around it as well. If you keep up with Bitcoin news, you would’ve heard about many different scams, people losing thousands by purchasing fake coins.

For these reasons and many other economical reasons, it’s unlikely that the current state of Bitcoin would become the standard international currency. Sure, there are still many international retailers and online stores accepting Bitcoin, but it’s become harder to use the currency, due to the scammers.

Bitcoin is completely anonymous, allowing scammers to get away with stealing much easier, especially for people who aren’t clued up with hacking and tracking someone down. Even then, Bitcoin scammers aren’t easy to track down, making the currency risky for the everyday user.

Cryptocurrency 10 years after Bitcoin

Cryptocurrency 10 years after Bitcoin

Cryptocurrency 10 years after BitcoinThe value of money is controlled by the Central Bank, you can physically see it and hold it and you can exchange it for services and commodities. Even though you can also send and receive it digitally, the fact remains that it is physical currency. Bitcoin, originally meant to be a peer-to-peer electronic cash system to prevent double spending, and not currency per say, was launched in late 2008, early 2009, by its inventor Satoshi Nakamoto, though not his real name. Bitcoin is not controlled by any entity or server, it does not have a physical form so you cannot hold it or see it, but it can be exchanged for goods and services digitally. It is digital currency and it is the world’s first form of cryptocurrency.

The turn of the 21st century brought the new age of digitalizing every aspect you can think of, seeking new ways to become untraceable. Cryptocurrency created just that. An anonymous way to transact business, virtually untraceable in most cases due to its uncrackable code, and secure enough that it may be the new future for money. The blockchain technology used for cryptocurrency transactions is basically a digital ledger which cannot be hacked, has no single point of failure and it is completely transparent. The question is, how is blockchain so secure in a world where hacking is becoming an increasingly popular career choice for most, bringing down entire economies at times?

Blockchain technology uses cryptography keys which creates your digital signature in the form of a private key that identifies with you, allowing you to digitally sign and authorize transactions, as well as a public key which does not give away your identity, only pointing the person you are conducting the transaction with to the address of your wallet where your cryptocurrency is stored, to be used for completing the transaction. Of course, if anyone has access to both your keys, then they can access all your digital assets, so private keys are meant to be kept safely.  Once a transaction is completed, it is added to the digital ledger of the blockchain and includes a digital signature, a public key, a unique ID and a timestamp. The public key is always random and it changes each time you do a transaction, making your identity virtually untraceable.

Transacting currency digitally is becoming progressively popular where persons now pay bills directly from their bank accounts, purchase commodities and transfer funds, all in the digital realm. With cryptocurrency, there is no middle man, that is, the banks. You are responsible for your own assets and you transact business with the person directly, albeit, without knowing who exactly you are transacting with. Nevertheless, blockchain technology would reduce costs and boost efficiency dramatically, and may even be the answer to reducing global poverty. All transactions are recorded and cannot be duplicated or changed since it is broadcasted to every node, thus lowering the rate of cyber-fraud and hacking. A cashless society is emerging and it all started from the Bitcoin invention a decade ago.