If you went back in time to 2009 and invested your life’s savings into the cryptocurrency known as Bitcoin, you’d be one of the wealthiest people around. Bitcoin is the leading cryptocurrency in the burgeoning world of blockchain technology. We just threw a lot of terms at you so we’ll go through them all here in a little bit. Our focus for today’s discussion will be on elaborating on the strength of Bitcoin, the future of digital currency, and how you can learn to embrace it from the comfort of your own home.
Embracing The Rise Of Bitcoin
Alright, so we need to start our discussion by focusing on what Bitcoin actually is. You’ve probably heard of Bitcoin, at least in a general sense, but that might be the extent of your knowledge. Bitcoin was developed by Satoshi Nakamoto in 2008 as a secure, encrypted and completely deregulated digital currency. Using a special mathematical proof, Nakamoto would guide the coin to market in 2009. Bitcoin was designed with a limitation in the number of coins that could eventually be ‘mined’. In doing so, Nakamoto prevented Bitcoin from falling to some of the same ills that traditional fiat currency does.
The Role of Blockchain Technology
Now, let’s talk about cryptocurrencies as a concept. A cryptocurrency is a digital currency that is encrypted and publicly protected via the Blockchain. The blockchain is a network of user-operated computers that all audit the different transactions being made with the coin of choice, in our case – Bitcoin. In exchange for auditing these transactions, supporters of the Blockchain will be able to ‘mine’ for coins. While mining, which is essentially just rapidly trying to solve a randomly encrypted password, users can occasionally be rewarded coins for their efforts. Eventually, all of the coins that are available will have been mined.
The Impact of Cryptocurrency
Now that we understand the fundamental way in which cryptocurrency works, as well as the role of the blockchain foundation, let’s focus on what benefits are being made available by way of the cryptocurrency. We’ll talk in a broad sense before focusing in on the individual user. On a broader scale, cryptocurrencies like Bitcoin can be used to fundamentally take power away from the banking institutes that seemingly control the world. Users holding Bitcoin wallets, taking advantage of services rendered by places like Abra, can trade with other users in a secure and encrypted way just like a regular fiat currency. Additionally, cryptocurrencies help fight against inflation due to the fact that governments can simply print more cash whenever they want. Bitcoin offers a stable and secure currency for users willing to take advantage of it.
On a more intimate scale, Bitcoin offers users the freedom to trade their coins to who they want, for whatever reason. There is no third-party looking to drag down the process. With encryption in place and the self-auditing blockchain, Bitcoin can become a seamless way to spend money on goods or services.