The Discussion On How Bitcoin Can Change The World – Part 1
The discussion on Bitcoin here is divided into 3 posts. Read all of them for an insight into the technology presented by Bitcoin
We Introduce The Bitcoin Here
It is here that bitcoin has been called many things like “The future of money,” “the drug dealer’s dream,” “the transformative,” “the disruptive” and many more. It was due to the anonymous nature, thereby bitcoin has the potential to change the way we bank, make transactions, and view money. Hence lets hereby examine bitcoin’s potential and its challenges.
It Comes As A Quick Primer
Hereby it is possible that one can earn money in dollars, pounds, euros by simply working, selling things, or therefore exchanging other currencies. It is thereafter similarly that one can earn bitcoins by mining, thereby working in a virtual world, as also getting paid in bitcoins for selling goods or purchasing bitcoins by exchanging existing currencies like that of US Dollars. Therefore, these earned or purchased bitcoins reside in safe wallets that are online secure bitcoin storage provided by bitcoin service providers. Hence it is here that wallet owners can use bitcoins for any transactions where the counterparty accepts bitcoins and every transaction, therefore, gets recorded onto the bitcoin network thereafter authenticating the transactions.
The Speculative Nature
It is hereby noted that the Bitcoin displays many new ideas where the transactions are made over a decentralized ledger technology. Hence here comes the need for the latest in the bitcoin ecosystem as also the best among the underlying technology. Therefore, we make sure the Bitcoin is made a secure investment for buyers and miners alike. Thereafter it is found that any currency’s primary usage comes for transaction-based trades, i.e., buying and selling things whereas Bitcoin is not yet widely accepted by buyers or sellers where its valuation has been a speculative game. Therefore, there comes the use of bitcoins for illegitimate purchases like those of drugs and gambling making buyers pay a premium due to the nature of goods or services involved. It is thereby that anyone purchasing legitimate goods or services through bitcoins would make a comparison with the dollar equivalent whereas opting for the cheaper option. It was seen that in the last quarter of 2013, the bitcoin was trading above $ 1200, which since then has seen a steady decline from around $ 800 in January 2014 to $ 330 in December 2014 and thereby to another low of $ 170 in early 2015, as the bitcoin has lost significant ground.
While the truth is that the dotcom bubble may have burst in 2000, the overall Internet use has now grown exponentially making it thereby mandatory framework for the present-day economy. Hence these recent valuations of bitcoin may be perceived as a similar bubble burst. It was thereby in 2014 that bitcoin saw some significant developments indicating the long-term positives and adoption potential of the currency:
It is hereby observed the largest increase in bitcoin trading volume. Several bitcoin wallets are growing from 3 million to 8 million.Thereafter there are these large corporations such as the Microsoft, Dell, Expedia, as well as the Dish Network, having thereby joined the list of the merchants accepting bitcoin.
Hereafter the number of those merchants accepting bitcoins has grown from 36,000 to 82,000.
Hereby the number of bitcoin ATMs has grown from just 4 to 340 worldwide.
As also venture capital investment in bitcoin shot up significantly from $ 98 million in 2013 to $ 335 million in 2014.
Therefore, it is here that bitcoin valuations are at the rock bottom while these recent developments demonstrate the strong future potential of the currency. Therefore, it is here that venture capitalist pouring in large amounts of capital into the currency as it is to reap great returns from long term potential.
This is therefore a rare combination of technology and finance with a global reach as bitcoin’s framework is impressive with the real potential that is not in its high exchange rate valuation or in providing an additional virtual currency that is free from governmental or political interference. Therefore it is here that Bitcoin’s potential lies thereby in its underlying technology, which is a secure system with built-in authentication of the transactions and record-keeping which could change the global financial ecosystem.
Summing Up The Discussion In This Post
The discussion doesn’t end here and is followed in the next two posts. It explains more on the robust nature of the technology underlying bitcoin mining that helps the investors and miners transact money safely and securely. However, the unregulated nature is still a challenge as the countries banning the currencies are more on the rise. We explain the reasons in the next posts.