In recent years, Bitcoin and other cryptocurrency have made their way in the era of the financial revolution. Bitcoin has proven its resilience over the years boasting around 18 million bitcoins circulating in the market.
When we go back to the beginning, Bitcoin has just a few enthusiasts. And now, since its creation, thousands of cryptocurrencies have emerged, trying to make their way to the digital market. More and more people have begun developing an interest in crypto trading and investment.
The acceptance made by millions of people has helped cryptocurrency gain legitimacy. Bitcoin serves not only a single country but also the entire world. And now, major retailers have accepted bitcoin as a form of payment. In response, a number of reliable platforms like Bitcoin Profit have been founded to supply the demand for cryptocurrency.
Before we elaborate on how the system works, let us first discuss the technology that makes cryptocurrency work – the blockchain.
The Blockchain: This technology is responsible for financial transactions or record keeping. It serves as a public ledger where anyone can have access. However, the manner of recording information makes it impossible to hack, or cheat.
This digital ledger allows the duplication of transaction records to be distributed among users and the entire nation that utilizes the system. Peer-to-peer technology allows every participant that owns a computer or device to store the information on their end and add it to another participant’s ledger, which duplicates and circulates the data all to all users around the world. Since a central server is not present, no one can make changes to the stored data. Blockchain is indeed a very complex system yet useful on its own.
Benefits of Cryptocurrency
Cryptocurrency has more to offer. Its unique technology may benefit you in many ways you can imagine. Here are some examples of its advantages.
Transactions made easy: Cryptocurrency is a more convenient form of payment. It allows you to make financial transactions and even buy goods and services at lower costs and sometimes free of charge. There is no need for a middleman or intermediaries, unlike regular banking transactions. It is also transparent, plus you can easily trace and audit all your transactions.
Confidentiality: The good thing about cryptocurrency is that every transaction is unique. Since the information is based on exchange, you can be assured of its privacy and security.
Low transaction fees: If you are tired of transaction charges from regular banks, then cryptocurrency might be a good option. Bitcoin and cryptocurrencies offer a lower cost of the transaction, even free of charge.
Hold Ownership: In the regular banking system, if it happens that the owner of the asset died, the nominee will be the one to benefit from it. However, in the case of crypto, you will be the only owner of the crypto asset with your private and public encryption keys on it.
Decentralization: This refers to having no single server. Blockchain technology is responsible for recording all your transactions. There is no need to deal with intermediaries. This feature also makes it impossible for hackers to attack the system or the program itself.
History of Cryptocurrency: Bitcoin has been around for almost thirteen years. It was created in 2008 and was launched as an open software on January 3, 2009. It was considered the first-ever cryptocurrency invented by an individual or group of people masked under the pseudonym, Satoshi Nakamoto.
Since then, Bitcoin has been around and continues to gain popularity over time. In fact, if you have invested $1,000 since it was first launched, you will be $36.7 million richer by now.
Bitcoin was not the first attempt at creating a digital currency. There have been numerous attempts like B-money and Bit Gold, but these cryptocurrencies never really made it nor developed.
Bitcoin has never been traded until the year 2010. Prior to that year, it was only mined by users. Finally, in the year mentioned, someone tried to sell their Bitcoin for the first time. The worth of 10,000 bitcoins was traded for two pizzas. Those Bitcoins would have been worth $100 million at today’s price.
In 2011, new cryptocurrencies emerged. These are called alternative cryptocurrencies or altcoins which are originally created to compensate for features that Bitcoin does not have as well as improve its original design. Namecoin and Litecoin have emerged.
For the first time since 2013, Bitcoin’s price has reached $1,000 but quickly began to decline. At this point, if you had invested $1,000, you would have lost around $300. It took up to 2 years before it went up again to $1,000.
In 2014, Microsoft allowed cryptocurrency as a mode of payment. And finally, in 2015, Ethereum and Coinbase were conceived. In 2016, Ethereum was recognized as the most notable cryptocurrency next to Bitcoin. Ethereum utilizes smart contracts, which refers to its blockchain technology. This technology enables sending transactions online in a faster and more convenient manner.
2017 – The breakthrough of the financial revolution. Blockchain technology has set a new standard on how a financial institution should be – fast and secure.
2018 – This year was the downfall of cryptocurrency. Over 1,400 crypto coins in circulation have dropped from an aggregate cost of $800 to $460 from the beginning of January to mid-January.
2019- GlobalCoin or FacebookCoin was launched. In mid-2019, Libra became its official name. However, the launching was delayed due to regulatory concerns and pledged to be back once the issue was addressed.
2020 – Present
Bitcoin continued to make headlines and even reached an all-time high of more than $64,000 in April 2021. It remained one of the most reputable cryptocurrencies in the market up to this day.
Nowadays, there are over 10,000 types of cryptocurrencies in the market. Each is making its own name. Most of them duplicate Bitcoin’s technology, and some have totally different features and purposes. More and more companies have begun embracing cryptocurrency as a mode of payment. Even large companies and big names in the business have attempted and invested in crypto, which caused a breakthrough in the digital world.
Predictions say that by 2030, it is possible that Bitcoin may be worth $500,000. Some say that in a few decades, it may lose its value. No one really knows.
Risk Note: Cryptocurrency investment is only recommended to those who are willing to take risks and losses. Due to its high volatility, this may not be a good investment for those who have a low-risk tolerance. It is advised that you study and research before making a decision of putting your investment in crypto.