Bitcoin is the most widely used cryptocurrency and is also the most popular. It is the most valuable cryptocurrency, having a market cap of $877,497,773,403 and at the time of writing, it was trading at $46,380.57. Despite the market volatility, Bitcoin has risen significantly in the last few years, challenging the pessimists to dismiss it as a disruptive force. The result of this huge price surge has caused multi-million dollars of investment in Bitcoin and blockchain technology, by big organizations, governments, and individuals.
Investors have realized the potential of Bitcoin and understood that it is not just limited to transactions. Blockchain technology on which Bitcoin is developed has functionality that is not just limited to commerce but is beyond. It is for this reason that Bitcoin has become the most disruptive technology in the present era.
Bitcoin Transactions Advantages
Some of the benefits of Bitcoin transactions are:
- Increase in user independence: In Bitcoin, a user has complete control over the cryptocurrency and has to not deal with any intermediary authorities as in the case of fiat currency.
- Anonymity: A user and his identity are kept undisclosed on the Bitcoin network. Any transactions made cannot be linked to the real-world identity of the user.
- Peer-to-peer network: The Bitcoin network is peer-to-peer, allowing users to directly communicate and carry out transactions without any need for a third party.
- Accessibility: Bitcoins can be easily accessed by anyone having a laptop or mobile phone and an internet connection.
Applications of Bitcoins are provided below:
- Payment Method: Bitcoin has been started to be accepted as a payment method across various organizations, even some countries have accepted Bitcoin as a legal tender.
- Privacy and Security: Given the complexity in tracing Bitcoin transactions, they provide high privacy to its users. Blockchain chain technology uses cryptographic and distributed ledger systems to ensure the complete security of information on the blockchain.
- Borderless payments: Bitcoin allows people to transfer money across the border for very low transaction fees and in a few minutes.
- Investment Opportunity: Bitcoin is considered as the ‘Digital Gold’. Despite being volatile, and the risks it possesses, it has served as a great investment opportunity, by providing huge returns.
Bitcoin Future: Is Blockchain the Key?
Despite the various challenges that are associated with Bitcoin, there is an innovation that undermines all, blockchain technology.
Bitcoin is just a small part of what blockchain technology has to offer. In cryptocurrency, blockchain ensures that all the transactions are more secure and decentralized.
Blockchain, which is a distributed ledger system, was first implemented by Bitcoin to record transactions; but, it could also be used for keeping track of digital assets, such as financial instruments, smart contracts, and public records. Several other cryptocurrencies, after Bitcoin, have used this technology to offer better services to users, and have been very successful.
Disclaimer: The article is just to provide information and shouldn’t be considered as any financial advice. It is advisable to conduct thorough research before investing in any cryptocurrency.
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