London, UK, 4th Dec 2021, ZEXPRWIREBitcoin was invented in 2009 by Satoshi Nakamoto. The coin was created to help people who didn’t have access to banks safely send money online without having the middleman take a cut. Bitcoin is currently the biggest cryptocurrency. It has a market share of more than 40%.

Bitcoin uses a decentralized system called blockchain technology. At its base, the blockchain is a cryptographic record of all transactions that have ever occurred. Rather than having one central server holding this data, the transaction record is distributed to many computer nodes called miners. The entire bitcoin network becomes thousands of computers running the open-source bitcoin software, and each miner continually works on creating blocks by solving mathematical puzzles. This ledger system prevents one person from spending the same money twice.

FinancialCentre Broker David Porter shared that when a miner’s computer finds an answer to a mathematical problem, it broadcasts the solution to all other miners in the network. The nodes then check whether this solution meets certain requirements and add it to their copy of records. Following that, the transactions are added into a block and sent out to all the nodes. This whole process takes around 10 minutes, and after an hour, all the block data is sent to every miner in the network.

Why Bitcoin?

The advantages of using bitcoin go far beyond its decentralized nature or ease of use. The peer-to-peer technology that powers bitcoin enables users to quickly send money anywhere in the world without transaction fees, even in countries where banking services are limited to citizens only. Bitcoin transactions are secure because it is impossible for one party to reverse a signed transaction.

A few downsides of an unregulated, global digital currency are that bitcoin is incredibly volatile. Its value can fluctuate drastically even in a single day, and the fact that it’s impossible to track means that bitcoins are frequently stolen from exchanges. Mr Porter said that the bitcoin community is also faced with the challenge of growing transaction volume, which means that it can take up to hours for transactions to be confirmed. States are also cracking down on illegal activities involving bitcoin, so mining coins may become difficult without proper knowledge.

Bitcoin is fighting all the odds

Mr Porter says that the digital currency still has a long way to go before it is totally integrated into the daily lives of people everywhere, but cryptocurrency in general promises to change the world by ending all central banks in favour of peer-to-peer decentralized systems like bitcoin. But despite all the odds, the price of bitcoin has been skyrocketing for the last twelve months.

Bitcoin’s price is volatile. It can’t be taxed by any government or institution, and it isn’t controlled by people with political agendas, which make it attractive for investors who like to remain anonymous. This, mixed with the fact that governments are printing more fiat money every day to pay off their debts, makes bitcoin a safe haven for potential investors. With a rise in the price of digital token, the public is becoming interested in the currency, which ultimately raises its value even more. Years back when the token was first rolled out, no one thought that it would get so popular and everyone thought bitcoin was just a fad.

It is true that Bitcoin is used by criminals because of its anonymity, making it extremely difficult to track their activity and trace the source of transactions. Some of the most famous cases include the online black market Silkroad, which allowed users to purchase illegal substances without their identity ever being revealed.

Bank of America

Bank of America keeps a track of crypto-currency market activity. Just recently, they have revealed that a survey was conducted which included fund managers as participants and it was to seek their opinion on the future trends in the price of bitcoin. According to the reports, the results of the data say that one-fourth of the total fund managers who took part in the study think that the price of the token will rise further. It will rise to a point where it will cross the $75,000 mark. However, there were other participants who said that the price will drop and it will move in a different direction.

Bitcoin’s price has been increasing at an astonishing rate ever since it came out. In the year 2012, when people suddenly started to take interest in it, the token rose from a value of 10 dollars in April. By December its prices went up and it reached a milestone of thousands of dollars per unit and the trend continues till date with occasional decreases. However, the price is still very high, and this is one reason why it has become a huge attraction for many investors around the world who want to make their future secure by investing in digital currency.

Disclaimer: Our content is intended to be used for informational purposes only. It is very important to do your own research before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on this article and wish to rely upon, whether for the purpose of making an investment decision or otherwise.