Bitcoin- it’s a simple seven letter word, but represents an entire universe that runs parallel to our established global economic system. It strives to be everything that the current financial system has failed to adequately address. Freedom, decentralization, privacy and convenience are the values this cryptocurrency tries to uphold.
Founded in 1998 by Satoshi Nakamoto, the digital currency has grown manifolds, drawing praise and criticism in equal measure. Central banks and many economists see it as a threat but the industry continues to grow and thrive; complaints of data breach and allegations of creation of a speculative bubble notwithstanding.
The Underlying Idea
So, how it all came to be? To understand freebitco , first understand what money is. The currency note is just a piece of paper, but it becomes valuable as the government has backed it as a means of carrying out business transactions. The central bank has control over all of the money and we the consumers function within the rules designed by the central bank. In effect, it represents a lack of choice and freedom and also a lack of transparency as the central bank is the sole holder of all data about the financial transactions happening in the system.
Enter bitcoin. It functions on an open source technology called the Blockchain. Blockchain is a network of connected computers, each having an updated copy of all the transactions happening in this parallel economic world, while at the same time withholding the identity of the persons involved in the transactions. Anyone who wants to get information can do so by logging into this network.
The Road Ahead
The road ahead for bitcoin looks promising. It’s a fully digital currency, tailor made for the future. However, its digital nature has raised security issues as well. Anyone with access to the private key or seed phrase can fish out other’s savings. Similarly, it has also been criticised for its instability and prevalence of frauds.