It was just a few years back when cryptocurrency and Bitcoin was the headline of every news topic worldwide. The hype over Bitcoin has stimulated the curiosity of many people, causing an influx of investments towards the cryptocurrency. Then it was just last year when the value of Bitcoin has dropped significantly, causing a stir in the economic and digital world. But what is Bitcoin really?
The rise of cryptocurrency
Bitcoin started out as an experiment back in 2008. It was one of the proposed ways to address the global financial crisis going on at that time by providing a better financial system, a neue Erfahrungen if you will. Before Bitcoin, cryptocurrencies have a negative undertone in the financial world as it is mostly associated with illegal transactions involving drug deals, tax evasion, and money laundering.
Bitcoin – the controversial cryptocurrency
Bitcoin is a form of digital money not controlled or issued by anyone. It is basically a global financial system used to securely store and transfer any amount of value worldwide. And much like any other financial system, Bitcoin can be used to buy goods and services, send value, or store wealth without the need for any party’s permission.
Bitcoin cannot be stolen, hacked, or seized by any government entity if properly stored, earning it the name as the “Digital Gold”. But unlike normal gold, Bitcoin is cheaper and much easier to move around or store anywhere in the world.
How does Bitcoin work?
Transfer of bitcoins happen in the Bitcoin network. A user will only need an internet connection and a private key to provide access to the coins stored in the network. Unlike other currencies, Bitcoin cannot be manipulated by a central of governing authority. Users in the Bitcoin network can use their bitcoin currency to buy and sell services and goods, send money to people, and extend credit in an efficient manner.