It is interesting to note that Bitcoin is one of the latest topics that have been in news. Still, many are unaware of it. Are you too? If so, then it is high time to get yourself introduced to this latest headline.
What is Bitcoin?
What is Bitcoin in actual? It is a type of electronic currency that is autonomous in case of traditional banking that came into circulation around 2009. It is suspected that it may be the future of online currency.
As per reputed online traders, Bitcoin has been considered to be the best form of digital currency that relies simply on computer networks for solving highly complex mathematical problems. It is done to verify as well as record details of each and every transaction made.
It is great to learn that the Bitcoin exchange rate hardly depends upon the central bank. There is hardly an existence of any single authority to govern the supply of CryptoCurrency. Still, the price depends on the confidence level of users.
Rate of Acceptance – Directly Proportional to Success Rate
More the number of companies accept Bitcoin as the mode of payment, higher are the chances of success. Now you must be wondering about the benefits in association with Bitcoin! Low inflation risk is one of the greatest benefits in association with the same.
You must know that traditional currencies sometime suffer from inflation rate. As a result they tend to lose their purchasing power each and every year as the Government carries on to take quantative easing for stimulating the economy.
Do you know why Bitcoin does not suffer from low inflation? Simple! Its mining is limited to 21 million units only. In other words the release of new Bitcoin is getting slowed down and finally the full amount will be mined out within the forthcoming decades.
Success of Bitcoins – Solely Relies on the Government
As per experts, it has been predicted that the last piece of Bitcoin will be mined by the end of 2050. It also comprises of a low risk of getting collapsed unlike traditional currencies. The success of traditional currency solely relies on the Government only.
As soon as currencies start collapsing, the situation finally leads towards hyper inflation or wiping out the plan of saving in a quick manner. It is surprising to note that Bitcoin exchange rate is hardly regulated by any form of Government.
Instead, it is a digital currency that is available on a worldwide basis. In general, we need some space to carry on our currencies. But in case of Bitcoin, there remains no such requirement. It has been reported to be easy in terms of carrying as it can be stored on a memory stick.
Easy to Move with Bitcoins
You may easily place the stick into your pocket and move to and fro with ease. In other words, it is really easy to transport Bitcoins in comparison to general money. If you use it in a very careful manner, it will become easy to avoid attacks by unscrupulous individuals.
Unlike other currencies, you may easily make money through proper usage of Bitcoins in the following manner:
You can openly trade with Bitcoins in an open market. In other words, you may purchase them at low rate and sell them at high rate. All you need is a good calculation power along with keeping yourself updated with latest market rate.
Transactions Involving Bitcoins –Treated Differently
Though Bitcoin is considered to be a highly secured cum inexpensive method of handling payments, in real life few businesses are accepting them. As per experts there is hardly any reason to consider that transactions involving usage of bitcoins will be treated in a different manner.
Critics state it clearly that this digital currency is not in a ready position to be taken into usage by mainstream due to its associated volatility. Do you agree?