Cryptocurrency is an encrypted digital currency that is processed and validated through data mining. The term has got wide popularity in recent times has it has become stronger by 400 percent of its initial value.
The process of using cryptocurrency for transaction is complex. There is no third party involved between the two who are transacting. Once a request is generated, a minor has to solve a complex problem after which the transaction is validated and kept in a public ledger. Public ledgers are like a storage bank where all the confirmed transaction are kept. The identity of the individuals is kept confidential.
Bitcoin is one such cryptocurrency. It was the brainchild of Satoshi Nakamoto who in 2009 invented Bitcoin. Bitcoins are infused in the market through miners. Once a transaction is validated miners got Bitcoins as rewards. More number of transactions means more number of Bitcoins in the market.
Recently RBI issued guidelines to banks and Non-Banking Financial Institution (NBFI) saying that any entity dealing in Cryptocurrency should be done away with. As there is a possibility that money through this can be channelled to fund terrorist activities, money laundering and other fraudulent activities. However RBI has not completely banned Cryptocurrency.
Given, the rising tensions between superpower and uncertainty about dollar fluctuation, Cryptocurrency can provide an alternative source. These can be made more secure through global norms. Recently Venezuela started Petro virtual currency in order to deal with the economic breakdown. The growing presence of virtual currency can’t be ignored.
We are constantly surrounded by various forms of technology. Some of those technologies have a tremendous amount of potential while most of them tend to dominate our lives for a certain period of time and then they are eventually replaced by some other form of technology. And the Bitcoin technology is one of those technologies that have a tremendous amount of potential. This technology has been present in our world for a comparatively shorter period of time but it has still been successful in dominating a very significant part of our world. Currently, there are a large number of businesses which have switched from the technology that they were using earlier to this particular technology. Because of all these reasons, there is still a lot of confusion surrounding the topic of this particular type of technology. And today we will try to dissipate some of the confusion surrounding the topic of this technology. However, before we discuss the various aspects of this particular type of technology it is first important for us to know about the blockchain technology.
What is the Blockchain Technology?
The blockchain technology was originally known as the block chain. The blockchain technology was originally created in the year 2008 by an individual named as Satoshi Nakamoto. To understand this technology in a better manner, you can simply consider this technology to be nothing but a growing list of records. These constantly growing records are known as blocks. And all these blocks are linked with the help of cryptography. Every single block contains at least 3 major components. And those three major components that are present in every single block are the timestamp, the cryptographic hash of the previous block, and the transaction data. This transaction data is also often represented by a Merkle tree root hash. The blockchain technology can also be defined as a type of technology that is characterized by being open and being a type of distributed ledger that has the capacity of recording transactions which are conducted between any two different parties. These transactions are also recorded in a verifiable, permanent, and efficient manner. This has also been a rather interesting topic for a number of different essay writing materials.
The blockchain technology was originally created with the main goal of it serving as a type of public transaction ledger to the cryptocurrency names as the Bitcoin. There are also a number of reasons behind why this technology has grown exponentially over the years. And one of the biggest reasons behind why this technology has grown so exponentially is because of the fact that this technology provides exceptional security to all its users. The transaction data or any other piece of data that is entered in the blockchain technology tends to be extremely resistant to any kind of change. And because of this particular fact, various companies and businesses from all across the globe can now choose to enhance their security and privacy features. There are also many other types of articles that you can find online to gain more knowledge about this particular technology.
What is Bitcoin?
Since you have some idea about what exactly the blockchain technology is so now we can begin to understand what exactly the technology of Bitcoin is. The Bitcoin is a type of cryptocurrency. And if you are not familiar with what exactly a cryptocurrency is then you can simply consider it to be a type of electronic currency which is decentralized and works from a peer-to-peer network. There is also a major difference between the normal form of cryptocurrency and the cryptocurrency. And that difference is the fact that unlike the normal forms of currency there is no central governing organization over the cryptocurrencies. And this particular cryptocurrency was also created by Satoshi Nakamoto in the year 2009. The price of this particular cryptocurrency especially skyrocketed in the year 2017. If you wish to know more about that exponential growth in the price of the cryptocurrency then you can also find different types of essay writing online that can provide you with more information.
Why Use the Bitcoin tokens?
There are a number of reasons behind why you should choose to use the Bitcoin tokens. And some of those reasons behind why you should use the Bitcoin tokens are mentioned below.
- With the help of the Bitcoin tokens, you can choose to buy any type of product anonymously
- You can also conduct the various forms of international transactions with an enhanced amount of ease. Using the Bitcoin tokens for carrying out internal transactions is also a comparatively cheaper way. This is because of the fact that the Bitcoin tokens are not tied up with some kind of organization or country.
- With the help of the Bitcoin tokens, you can also escape the taxing credit card fees. This is especially a big advantage for individuals who are running any kind of small business.
- Buying some Bitcoin tokens is also a good method or way of investing some of your money. This way of investment has become extremely popular during the last few years.
These are all the reasons behind why an individual might choose to buy some of the Bitcoin tokens. These can also be considered as the advantageous that an individual can get to experience if he or she chooses to use this particular technology with the help of some kind of application.
How to Buy the Bitcoin Tokens?
There are basically three major ways through which an individual or any company might choose to buy some of the Bitcoin tokens. And those three major ways are mentioned below.
- The Bitcoin Exchange: You can choose to use an application or some kind of marketplace that would allow you to buy some Bitcoin tokens online. According to the various forms of essay writing that can be found online, this is one of the most common ways through which individuals and businesses can buy the Bitcoin tokens online
- Through Transfers: You can also choose to use some kind of mobile application or a computer application which will allow you to simply send or receive your Bitcoin tokens online
- Through Mining: There are also a number of individuals who compete to solve some kind of complex mathematical problem which will allow them to ‘mine’ some Bitcoin tokens online. An individual does not require any kind of application to mine some Bitcoins that they might need. Are you looking to buy bitcoins, contact swftyx.
These are some of the most common and interesting ways through which an individual can acquire Bitcoins.
What is the Bitcoin Wallet?
Another major part of the Bitcoin technology is the Bitcoin wallet. There are basically two types of Bitcoin wallets that exist today. And those two different types of Bitcoin wallet are the wallets in the cloud and the wallets on the computer. You can also consider these Bitcoin wallets as a type of application or a digital wallet that you might have used earlier. You can also use this particular topic for your own essay writing. You can also consider your wallet application to be a kind of a digital bank account. It is important for you to remember that this Bitcoin wallet or the application of the Bitcoin wallet is one of the most important parts of the entire Bitcoin technology.
What is the Future of the Bitcoin Cryptocurrency?
You can find different types of essay writing online that are devoted to only discussing the possible future of Bitcoin technology. While the fact cannot be denied that investing in this particular technology can be extremely profitable for an individual or any business. But it is also extremely hard and complicated to pinpoint the exact future of the Bitcoin technology. You can find some sort of essay writing online which state that the Bitcoin technology has a positive future but you can also find some sort of essay writing online which say the Bitcoin technology has a sort of a hazy future. Both of those types of studies choose to focus on one or the other aspects of this technology. And it can be easily concluded that it is hard to decide the exact future of the Bitcoin cryptocurrency but it can be safely said that this is one of the most profitable and successful cryptocurrencies that exists today.