Satoshi Nakamoto created Bitcoin, a digital currency, to allow individuals to transfer value via transactions over the internet. Bitcoin provides an alternative, cashless payment method operating without centralized control as a digital currency.
However, nowadays people use it just like conventional currencies.
Bitcoin uses cryptography based on the SHA-256 algorithm to enhance safety, which the U.S. National Security Agency designed. Thus, cracking this is almost impossible because it would involve testing many private keys. Ideally, a hacker would test more private keys than atoms available in the universe.
Today, people purchase Bitcoin on crypto exchanges such as Trustpedia. These platforms allow individuals to sign up and buy Bitcoins using fiat money. Once you’ve purchased Bitcoins, you can use them in daily transactions or hold them in your crypto wallet as a long-term investment. (You might want to check out How to Buy SafeMoon for more information.)
Apart from using Bitcoin in daily transactions, some people speculate about its price and trade it for profits. Wild Bitcoin price fluctuations make this virtual currency a tradable commodity. But individuals should exercise caution when trading Bitcoin because its volatility means you could quickly lose a significant amount of money.
So, why is Bitcoin relevant in today’s world?
Satoshi wanted to eliminate intermediaries that delay conventional money transactions. Bitcoin uses blockchain to facilitate direct transactions between users.
Perhaps the underlying technology is the primary reason for Bitcoin’s value.
Today, people can transact internationally within minutes. The ease of use has increased Bitcoin’s demand and adoption globally.
As long as a person has a smartphone or tablet for accessing the internet, they can purchase Bitcoins using fiat money and use them to settle transactions almost instantly.
Ideally, Bitcoin makes a smart device or a computer a bank that facilitates instant money transfers or payments.
The world has many people that can access the internet but not conventional exchange systems. Many individuals in the world don’t have a bank account.
Bureaucracies and paperwork combined with a high minimum account balance hinder some individuals from accessing banking services.
Bitcoin doesn’t require a minimum account balance, personal information, and other details to allow individuals to use it. Anybody with a tablet or smartphone can use it to access the internet and Bitcoin.
Ideally, Bitcoin is open to all, and this improves financial inclusion.
The current online ladnscape has many people wanting to steal money from unsuspecting users. Many people have lost money when transacting online on conventional financial systems.
Bitcoin stores details of all transactions in a public ledger. Also, it encrypts the coin owners’ identities to ensure legitimacy in record keeping.
When you buy or receive Bitcoin as payment, you own the coins due to the decentralized nature of this virtual currency. Thus, neither a bank nor a government can control or confiscate your Bitcoins.
Although criminals have hacked Bitcoin exchanges and stolen coins from some accounts, they have not infiltrated the Bitcoin network.
The only way people can lose Bitcoin is via a crypto exchange or Bitcoin wallet hacking. Therefore, Bitcoin users should be careful when using crypto exchanges and crypto-wallets.
The Bitcoin ledger ensures that digital wallets transactions calculate accurate balances.
Bitcoin miners check all transactions to ensure that the users spend the coins they have in their wallets. Bitcoin also uses a transaction blockchain or a public ledger that shows details of every transaction.
Ideally, blockchain technology makes Bitcoin transactions secure via smart contracts and encryption. And this makes Bitcoin fraud-poor and virtually impossible to hack.
Bitcoin is undoubtedly relevant in the current world. It presents an innovative payment method and a crypto asset that many people and institutions want to invest in and reap returns later.
Nevertheless, understand how Bitcoin works before accepting its payments and trading or investing in it.