Bitcoin is the highlight of 2017. It can easily and unanimously be called a growing cryptocurrency. Rising from the field of techies and the few select virtual currencies, the most popularly represented bitcoin became famous in every home and ceased to be a paradigm. It became a dangerous explosion on the horizon and swept ordinary people like you and me.
Driving an unprecedented and unthinkable wave, bitcoin jumped 900% last year, making it one of the most effective assets of 2017. He peaked at nearly $ 20,000 before European Christmas.
Another critical cryptocurrency – Ethereum – has grown by more than 2,500% over the past year.
Bitcoin is the first and largest cryptocurrency. it
decentralized trading digital asset, which means – it is not controlled by any country or central banks. Therefore, in the absence of a competent authority to manage it, Bitcoin is remarkably resistant to censorship, corruption, or regulation. This is a problem of various governments that oppose cryptocurrencies and want to introduce laws on checking, controlling the use and ownership of cryptocurrencies, such as Bitcoin, in the legislation, because the central banks of large countries are afraid of them. If virtual currencies remain uncontrolled, then they will be able to overthrow the domination of the dollar and powder the economic paradigm. It makes you wonder what are cryptocurrencies, especially such as Bitcoin, and what are their functions.
There are more than 130 cryptocurrencies, of which Bitcoin is the pioneer, with the most popular. At its core, it is a form of digital asset created through a secure combination of encryption and a peer-to-peer network.
Thus, owning a bitcoin, or part of it, this means that you have a secret digital key, or, more simply, a password that gives you the right to own bitcoin or part of it. When you spend bitcoin, you must use the same password to identify yourself, tell the online miners that you are transferring the digital currency ownership rights and using the same key to prove ownership. Only the computer system understands the password and anyone who uses a digital key is considered the owner.
A secure network of computer history of all transactions is created and maintained by a record of who owns bitcoin, which in the simplest sense is called “blockchain”. The most notable advantage of cryptocurrency is the lack of censorship, although in another sense of the word, this is a significant drawback, since it has become a haven of illegal and smuggling transactions that drug dealers, terrorist organizations, etc. can abuse.
However, you can watch Bitcoin-payment in the process, however, it is almost impossible to stop it – this is a risky part, as in
conventional banking: banks can intervene to stop
deal or even freeze the account and limit money laundering or enforcement.
The next big question that haunts us is: why
prices soared unthinkably high and then collapsed?
Bitcoin or any other cryptocurrency was developed only as an alternative to currency. They were meant to
receiving seamless payments.
However, led by the notion that bitcoin will soon be the currency of the world and only a limited amount of it can be produced, this leads to speculative buying, which has aroused the interest of many people.
The first participants of Bitcoin-mania, who invested in Bitcoin, witnessed an unprecedented increase in its market value, which inspired others to “lap up” it and caused a furious impulse.
However, despite the final figures (21 million), bitcoins do not have any intrinsic value. Therefore, starting from its economic sense, the internal cost of bitcoins will remain zero. Bombed number 1 confused many economists and investors, spawned discussions about the future of digital currencies and a fairly large number of names in the financial and economic world, including such legendary investors as: Warren Buffet, Agustin Carstens (new head of the Bank for International Settlements), Nouriel Roubini (American economist who predicted a financial collapse in 2008), JP Morgan (boss Jamie Dimon), Robert Shiller (Nobel Prize winner, economist), Joseph Stiglitz (Nobel Prize winner, economist).
Many experts predict the death of virtual units, while some of the most famous companies in the world, such as Microsoft, accept Bitcoin for payments on their online shopping sites. Pay Pal offers its integration for merchants to provide cryptocurrency payment option. So the dilemma about the future of bitcoin and other cryptocurrencies continues. First of all, Bitcoin as an investment asset is a dilemma. It will become more acceptable with increasing awareness of the use of cryptocurrency as a payment option.
The main countries of the world have imposed restrictions on e-currencies, and some of them have caused acceleration and even called them the Ponzi scheme, but the resolution of cryptocurrencies is moving forward, albeit with great volatility.