In 2009, Satoshi Nakamoto was the first person to introduce a new form of digital currency in the market called “Bitcoin”. Bitcoin Exchange is the generalized term for different kind of cryptocurrencies by which people can use as an alternative to cash for purchasing or selling. The monetary value of the purchased product was assured since there is now no requirement of agent or middleman. There is no form of tax or revenue generation from the incurred crypto-currency. This is because no banks are engaged in its transactional process. Near 2017, the market price of bitcoin reached the sky.
Is the world ready to replace Bitcoin with the conventional cash?
The monetary value of cash is decreasing day by day. The tax-system is getting complicated especially for the middle-class. There is no assurance of the banks that they can give security to user’s money. Whether buying or selling a property, official papers take a long time. All this has made people update the choice of transactional value to Bitcoin.
Why Bitcoin is becoming so popular medium of exchange?
Excellent source of investment for those who want to
- try in their luck in the market.
- Absence of credit card fee makes it a smooth choice for the small and recently established companies.
- Buying products without revealing the actual identity of the buyer is possible.
What is a Bitcoin wallet?
Just like cash is stored in a wallet, Bitcoin currency is stored in a Bitcoin wallet. This wallet is situated in the cloud or on a computer. This wallet is like a virtual bank. Sending or receiving bitcoins, storing bitcoins and purchasing goods from them is possible. There is no fixed deposit scheme here like conventional banks. The wallet in the cloud is a risky option. The server can be hacked and the company may steal all the Bitcoins if the user. To place the wallet in the computer is a better option but still, hazards remain here also. The virus can destroy important things. One can accidentally delete any official information. Use bitcoin-treasure to save your bitcoin currency.
What are the possible areas where it is used as a cryptocurrency?
- Exchange: Many market places are now accepting Bitcoin as a mode of payment. This has helped people a lot to buy products when they are travelling to a different country. Bitcoin is accepted as a singular unit in the global terms.
- Transfers: Digital exchange of cash is just like Bitcoin exchange. One can transfer Bitcoin digitally to anyone. A mobile or a computer with a strong internet connection is sufficient to do it.
- Trading: Crypto-trading is the next big thing that helps people to earn money by playing online games.
The anonymity nature of this recently invented cryptocurrency:
In bitcoin transactions, only the transaction ID of buyer or seller is recorded. There is no official registration of the actual identity of the seller or buyer. Hence the transaction is confidential. The worst part of this game is that people may take advantage of it. For this reason, Governments are trying to put effort to issue policies to track the subjects involved in the transaction.
What is the future of Bitcoin?
The unregulated future of Bitcoin is of immense concern. The government is not able to impose a tax on the Bitcoin currency since they have no control over it. This has reduced the annual revenue collection. Many countries are now taking it seriously and putting regulated terms on the use of cryptocurrencies especially on Bitcoin.
Bitcoin has readily changed the definition of “monetary value”. Nowadays, more encouragement is given by all governments to adopt digital currency and replace conventional cash. If there is a world-wide awareness about the utilization of Bitcoin, any financial transaction will become much more transparent and flexible. From an environmental sustainability point of view, the fewer cash people will use the less will be produced by the government in the mint. Hence papers are less wasted. Much more education and experience is required to handle crypto-currency. It will benefit the growth of GDP and or general terms, the economic development of the country.