Bitcoin wallet transaction currency market:
First digital or crypto currency to be introduced to public. It is the world’s most traded crypto currency. It has most developed infrastructure. It is used as a hedging instrument in turbulent markets. It has a massive share in the crypto currency market.
First introduced as open source software by a programmer. It is rumoured that it is developed by Satoshi Nakamoto which he himself claimed. But seeing his perfect English and the programme not labelled in Japanese some don’t believe that he has introduced this software. but Nakamoto owns one million bitcoins which amounts to $ 3.6 billion as of September 2017.
Decentralised was done after Nakamoto moved away from it. It is independent of world governments, banks. The main advantage of Bitcoin is that no authority can interfere in transactions. It is free from transaction fees and no one takes away people’s money. Public ledger called Blockchain is maintained for every single transaction which makes it transparent. It gives full control of finance to the users.
How does it work
Every user can only see the bitcoin amount in his wallet and the transactions being done. Public ledger called Blockchain is shared and it records each and every transaction being done. Digitally recorded transactions are combined into blocks. No one can do fraud if one transaction is changed then it will affect all the transaction.
Due to the public ledger the fraud can be spotted easily and rectified. Validity of each transaction can be verified. Transaction authenticity can be protected by digital signatures. Due to all this verification and authentication bitcoin transaction takes some time to complete. It is designed to take 10 minutes for each block.
- Decentralised – The main objective behind developing this software by Mr. Nakamoto was to be independent of any government / authority interference and if any one network fails then also money should keep on moving. Nakamoto also wanted each and every person or business or mining machinery or transaction verification to be part of a vast network.
- Anonymous – Bitcoin does not want any verification or identification proof of users unlike banks which have all the personal details of its consumers. Some people do not want their finances to be governed by any authority and some believe that due to this anonymity various illegal and dangerous activities thrive in this set up.
- Transparent – Wallet is linked to public ledger and anyone can see that how much money is in it but one cannot take out any personal information about a user in this. Each and every transaction is stored in the blockchain ledger. Some people like transparency and some like opaqueness and security. Simple way is to not transfer huge amount in one wallet. And for security, use multiple addresses.
- Fast service – It doesn’t take much time for transactions. It may take a some minutes if one is transferring money in the other end of the world but for normal banking transactions it does instantly.
- Non-refundable – Bitcoin once paid to someone will not be received back unless the sender transfers it back to you. Here no one can claim that they didn’t get the money when you are trading with someone. It ensures receipt of payment.
How can we get Bitcoin?
Bitcoins is available in various exchanges. It can be bought from exchanges or other people in market. Buying can be done through credit card, cash or debit card or with other crypto currencies but one needs bitcoin wallet for this.
Getting a bitcoin wallet has many options such as online wallet or a software wallet. Software wallet is saved in hard drive of one’s computer and it can get corrupted. Online wallet has the problem of being hacked. There are even mobile wallets which is very simplified because huge storage capacity is required to carry the blockchain. Hardware wallets and paper wallets have two QR codes which makes them safe from cyber attacks and hardware failure.
Market capitalisation of Bitcoin
Bitcoin is the leader in market capitalisation. It has risen 10 times more in certain time of the year. But as it has grown in last year, same way it has also come down in last year. The crypto currencies have risen in terms of market capitalisation in last year.
There has been significant demand for these currencies in the market. There are new currencies in every week and along with that blockchains are also being developed by various start-ups. It’s a volatile market. As the value rises in no second, it also goes down in no second. That’s the main drawback of this market.
Bitcoin is in the top in terms of market capitalisation. Its market capitalisation is $125 billion with price per coin is $7,305. It is worth more than many U.S companies like investment banks Goldman sachs and eBay. As it is getting lot of attention there are chances that more and more investors would get into this. But this market is very volatile and one can earn tremendously as well as lose everything. So, one should be ready to face anything.
Bitcoin is known for its volatility. In December, it rose to $19,850 mark which went down to $12000 within few days and it dropped further to $7000 by the end of February. Actually no one can predict the future of this currency. It is possible that it will go down to zero or it can rise double, triple or more or it can be constant. No one can say or predict even if you are very well verse about this market.
BitCoin Crypto Currency
John McAfee is positive about this currency, says that it will cross $500,000 in next three years. But Warren Buffet does not think that, he believes that bitcoin has no future this will end with a bad note.
Bitcoin has also major setbacks like it can be used in illegal activities, it consumes high electricity, price volatility, thefts from exchanges and some also believe that its an economic bubble. Government