They say change is the only constant in life. Everything new is just a more refined abbreviation of something old, making our lives a lot easier than before. The same is the journey of money. Before hard currency came into existence, people used to exchange in the form of goods and services for other goods and services. It has its history back in 6000 BC, where it had profound effects. Bitcoin is somewhat old coming back into the present with bigger and better value.
What is Bitcoin?
Bitcoin is a digital currency that has its decentralized authority, which operates it. Bitcoin has lower transaction fees than most of the online payments mechanisms right now. This currency is not physically available but is kept on a public ledger for easy access to everyone. Bitcoin is getting advanced every second and has launched many more cryptocurrencies, i.e. Ethereum, XRP, stellar and tether.
Value of Bitcoin
On August 18, 2008, Bitcoin was registered on a public domain that was named bitcoin.org. Bitcoin is a store of value and its value depends on the number of exchange it has. It covers all the attributes required for a successful currency, e.g. scarcity, utility, divisibility and transferability.
Let’s take a closer look at how it works.
Maintaining currency value is through maintaining its supply and flow. If the supply of the money is high it could spike the rate of goods and, the other way round, if the supply is less it could even collapse the economy. Bitcoin has a flexible issuance, which flows and changes from time to time. The current supply of Bitcoin is roughly 18 million and the rate to which it is released decreases after every four years.
8 decimal points is the number to which Bitcoin is divisible. The divisibility of Bitcoin makes it scarce. If Bitcoins increase in value and volume in future, users can easily access them in daily transactions. Even a single Bitcoin has more divisibility than the US dollar itself.
Blockchain technology has been the greatest factor of selling points in Bitcoin. The Blockchain is a decentralized process wherein the parties participating need not build any kind of trust in one another to let the system work properly.
Transferring money in the current scenario can take a lot of time than expected, but with Bitcoin, it can be done within minutes, regardless of the size of transactions, and with the lowest costs.
Bitcoin is not far when it is going to have greater value than the normal currency used by millions worldwide. The digital platform is handier and easily accessible to many and it’s virtual, which gives it one more plus point, securing an individual from the scare of theft. Bitcoin is the new normal in the days to come.