31 Jan Bitcoin: Know why and how it’s leading the market globally
First and foremost, question that still bothers people is “what is Bitcoin?” And for what purpose it is being used on a large scale in the current economy? Well, universally Bitcoin is known as a popular cryptocurrency. In the layman’s term, it is electronic cash or digital currency which is “decentralized.” Decentralized means it is not governed by the government, and in fact, no individual or a group of individuals hold any kind of authority over it. Since its 10 years of existence, the bitcoin as a digital currency can serve various purposes. In a nutshell, Bitcoin is used to buy or sell items from people and even companies accept bitcoin as payment, without involving any third party.
The easiest way to understand the usage of Bitcoin is – it is a digital way of investment. Many people use it for investment purposes. Not only that, the research based on Bitcoin clarifies that programming language is C++ which leads to apparent pros and cons to the usage of Bitcoin in various ways.
I would highlight some basic pros and cons of Bitcoin:
– The foundation of Bitcoin by the anonymous personality Satoshi Nakamoto highlighted in its very first proposal that the digital currency is going to have no authoritative hold on its blockchain process. This led to the massive interaction towards the usage of Bitcoin.
– In comparison to PayPal and even credit cards, the low transaction fees make it convenient to use as an electronic currency.
– The most critical aspect of Bitcoin which made it famous in a short period is the elimination of middleman, being a peer to peer cryptocurrency which (not to forget) allows low transaction fees.
– Not only that concludes the high goodwill of Bitcoin, the word of mouth spread so well with the fins Pros that it can easily be converted to fiat currency, for e.g. USD upon demand.
Now when it comes to cons, the list tops with:
– The privacy breach issue: Since the platform itself stores the public key of users on the public domain, the data of an individual comes at the high risk. While one reads the news of high investment returns on Bitcoin transactions, the other reads the update of high loss of data and the other transaction details. All credit goes to great professional hackers.
– The maximum block size of Bitcoin is 1 MB, this is what is responsible for slowing down the process of a transaction which leads to the rising price margin, which apparently makes it super costly in just one go.
– The use of Bitcoin also comes with the Danger of being replaced by the replicas over the Internet. In 10 years, already so many of crypto-competitors came to the existence which are having the base of Bitcoin. In the digital market, it sure is a threat to users owning the original Bitcoin, as the replicas are bit cheaper than the originals.
– Many nations have warned their citizen about the risky nature of Bitcoin. And in fact, the early update is telling that the Russian and French lawmakers are thinking of banning it altogether.
Even after coming to know about all the pros and cons of this leading cryptocurrency, many of the major banks have expressed their interest in the blockchain technology. On account of that, as a national citizen what do you think?
Should the government classify Bitcoin as legal currency?
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