We can observe where our Credit cards and debit cards are heading towards in this competitive market where the currency is speculated to loose its significance in coming future. Here Bitcoin has presented an alternative to currency and is on its way to and Advent of new whole economics works. Once upon a time Bitcoin used to be in hands of illegal Online transactions. But now it has initiated a new economics altogether in between financiers and Economists. Read ahead about this new coin history, how to use it and what laws have to say about it.
What is Bitcoin?
Bitcoin is a digital currency it is not a physical currency but is a computer code which could be stored in an online valet. With this currency you can do transaction all across globe. The best is it is not controlled by any government or regulatory banking authority. It can be exchanged with any currency of this world, it is also called as cryptocurrency. Regarding history it was first introduced on paper by a pseudonym developer called Satoshi Nakamoto on 3rd January 2009 as a peer-to-peer electronic cash system aka Digital Currency. Its subunits are as below:-
Subunit
.001 mBTC (millicoin)
.000001 μBTC (microcoin)
.00000001 Satoshi
The smallest unit named after its founder first name Satoshi. The Inflation for the currency has a different methodology the number of coins to be generated is halved evert 4 Years until number of units is 21 Million. As I am writing this post 11,132,450 (About 11.13 Million) Bitcoins are already in circulation. It is expected that Bitcoin will reach mark of 21 Million by 2040.
How is it Issued?
It is issued on a special community software which on every 10 minutes automatically builds a coin and distributes it. The process of currency issuing is called mining. The process of mining is secured by secured servers called bitcoin miners. For using this currency you need to download and install bitcoin software on your computer, Android users can download it from Google play. Post application deployment you will get a bitcoin code or also called as bitcoin address. It will work as a bank account in any transaction, you have to mention it in every transaction. For making a transaction you must have bitcoin address of yours and other party.
Why is it is so Popular?
We are enlisting four points which is making this currency popular:-
1. It is not controlled by any Government, Country or bank hence incase of Economic downfall this currency will be unaffected. But fluctuation in exchange rate is a trouble as of now, which needs to be fixed as investor can loose a huge amount in a money market all of a sudden.
2. The transition fee is not a concern as the Bank/Regulatory or Financial Institution is not involved. This transaction is person to person only. So the secrecy is an inevitable benefit.
3. The money transfer is as easy as sending an email with a click of a button you can send money from one country to another.
4. The issues of regular currency like Currency dilution or Fake Code generation is impossible in this case. Another security feature.
What Law and Enforcement Agencies has to say about It
Regulators and Financial Comptrollers have a raised eyebrows over this digital currency and its raising popularity. These Financial security establishments have raised concerns over this currency because of fear of hawala and money laundering due to anonymity.
Over to You
For those who wants anonymity in donations, transactions which can disclose there physical knowhow Bitcon has appeared as a life saver. Is the anonymity can lead to usage of any currency. What are the other possible issues this currency may face? Do let us know your feedbacks by comments or email and if you have liked this article please do share it on
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