When you sit down to discuss digital coins, Bitcoin will most probably be the first topic. It arguably the most popular cryptocurrency today. In this report, we are going to discuss Bitcoin in detail including its history and use.
Despite the coin’s massive success, a large portion of the population is still unaware of Bitcoin and how it works. This report is directed towards such people as we have only defined Bitcoin in detail but we have also covered different aspects of it including its features.
Once you read this report, you will understand what Bitcoin is or how it is being used in today’s’ time. We’ll also get into details, discussing the technology behind Bitcoin while also talking about the impact it has had on the world economy.
Moreover, we’ll also have a look at the currency in a critical way by looking at the future potential of Bitcoin. Let’s get started:
Features of Bitcoin
The coin is based on blockchain that is maintained by a defined network of communicating nodes with the bitcoin software. All transactions are broadcast on this public network and a new block is created every few minutes to note spending so that there’s no doubt spending of the same coin.
Bitcoin transactions are noted in a scripting language and consist of one or multiple inputs and outputs.
Users send money to an address and not the person. They can select the amount to send based on the amount to own at the time of sending. However, the transaction fee is also accounted for.
Often written as ₿, the ticker symbol for the currency is BTC. However, it’s also often called XBT. The unit of account of the bitcoin system is a bitcoin.
The smallest unit of the coin is called Satoshi, which equals. Users may opt to buy a single Satoshi if they can’t afford to buy the coin in full.
Miners have the choice to pick and prioritize transactions that pay more. The fee is usually measured in Satoshi and largely depends on the size of the transaction.
The government or other organizations cannot control the value of Bitcoin, which is one of its defining features. There’s no risk of manipulations in the case of bitcoin, which is a common concern with it comes to other currencies.
The supply of Bitcoin depends on mining hence there’s no risk of oversupply. Moreover, there’s also a maximum number of BTC, 20999999.9769.
No Counterfeit Product
There’s no risk of the currency being forged. The transactions are transparent and available on the network for others to see after being confirmed. Hence, the risk of fake Bitcoin doesn’t exist.
Challenges to Adoption
Bitcoin is huge but mass adoption is presently a far cry due to the challenges involved. These include:
- Lack of Faith: Users do not have much faith in Bitcoin as it still has not been accepted by most governments.
- Too Expensive: Bitcoin is the most expensive token out there and if currently trading around $9,000 after reaching almost $20,000 in the last quarter of 2017. While users have the option to buy a single satoshi but some may still find it expensive.
- Volatile: Bitcoin prices are highly volatile and change several times in an hour. This makes it a risky environment and keeps people away.
“Bitcoin is better than the currency in that you don’t have to be physically in the same place and, of course, for large transactions, currency can get pretty inconvenient,” said Bill Gates.
The statement from one of the world’s most successful man shows how easy it is to use Bitcoin to make and accept payments. You only need to get a wallet (paid or free) and you’re good to go.
Moreover, a growing number of sellers have now started to accept Bitcoin payments. Amazon and its partners like Fbabee may soon join the list as Bitcoin grows even more.
Bitcoin might be the first cryptocurrency but it’s not the only digital coin out there. The competition is huge with other names like Litecoin and Ripple having also found a place in the market. In such a situation, why should people turn to Bitcoin?
There are a few reasons with its name being the biggest advantage. When people think of digital coins, they think of Bitcoin This good image helps Bitcoin stay ahead in the race as it enjoys the largest market share among all coins.
Check out this video from Fox:
- Technology: 10/10 (The latest technology, hence the best)
- Team: 5/10(Unnamed)
- Vision: 8/10(Great wore but minus 2 due to there being a limited number of coins)
- Scalability: 7/10(problem may arise but the teams are trying to find a solution)
- Adoption: 8/10 (high price can be a concern)
Bitcoin is obviously great but the high price, the limited number of coins, a lack of information on the team, and possible scalability issues can be a concern in the future.