Jan 20, 2014

Bitcoin the Future in Digital Currency

There has been much speculation as to the success of Bitcoin as much as the true identity of Satoshi Nakamoto, the pseudonymous used for the person or group who created Bitcoin.

What is Bitcoin?

Bitcoin is a digital currency first created electronically in 2009. It is also known as a Peer-to-Peer Electronic Cash System or crypto currency.

How was it created?

Bitcoin the Future in Digital Currency
In the midst of speculation and some secrecy, a paper was posted on the internet under the name Satoshi Nakamoto in November 2008.
This paper detailed the methods of using a per-to-peer network in order to generate a system for electronic transactions relying on trust.
In January 2009, the Bitcoin network was launched with the first open source Bitcoin client and the issuance of the first Bicoins.
Satoshi Nakamoto mined the first block of bitcoins known as the genesis block, which had a reward of 50 bitcoins. The value of the first bitcoin transactions is known to have been negotiated amongst individuals in one peculiar transaction which involved the acquisition of a pizza for the amount of 10,000BTC (bitcoins).

 Who created Bitcoin?

The only information known is the Japanese name Satoshi Nakamoto, but nobody has ever seen the person or prove he is a he, she or a group, or even Japanese for that matter, and there are many around the globe trying to find who is the creator behind Bitcoin.
What is said is that Satoshi Nakamoto invented and created Bitcoin and then said “I have to go do something else”.

What makes Bitcoin different?

1 - The network isn’t controlled by one central authority. This means that no single institution controls Bitcoin.
     2 - Bitcoin is not printed like other currencies which give unaccountable advantages pertaining to the    devaluation, many times, used to cover national debt.
     3 - While conventional currencies are based on the price of gold, Bitcoin is based on mathematical formulas using computing power in a distributed network.
     4 It can be used electronically, more or less instantly, with very low transaction fees.

Bitcoin and the present

Bitcoin has been suffering from volatility mainly because some countries such as China have decided to ban its use. 
Some say the sky is the limit for this new currency that promises to revolutionize the world.
In the meantime, there are people using the software to mine Bitcoins around the world as a whole new way to make money. Others are renting the power of their computers to be used inside the cloud in order to mine Bicoins. Others are doing all of the above, as well as trading. 
Bitcoin, from a hard fall in December, after China banning their financial institutions from using it, where a high of $1,240 fell to $576 in just three days, as I write this article today, the exchange rate is $878,618.
Bitcoin and the future
According to news from France Press, a report by the International Institute of Finance, which represents more than 450 banks and financial institutions, said “more regulation of Bitcoin exchanges and transactions could strengthen its legitimacy among consumers and ease regulators doubts about it”.
"Despite Bitcoin's 'ingenious features' it cannot provide a currency of stable value and its use as a broadly accepted medium of exchange appears limited," the report concluded.
Convincing traditional banks or bankers to use a nontraditional currency such as Bicoin is probably a long journey, but I am convinced some will have to give in, as Bitcoin is here to stay and revolutionize the whole usage as well as concept of currency in the future. 

If you need a Bitcoin e-wallet you can open an account here at Coinbase.

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