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What is Bitcoin ? – Good Or Bad?

 What is Bitcoin?

Bitcoin is a cryptocurrency and worldwide payment system. It is the first decentralized digital currency, as the system works without a central bank or single administrator.So , basically we can say that bitcoin is a virtual money that doesn’t have any physical existence.We have to manipulate it digitally.

So , this was a brief intro to Bitcoin.Now , We ll see is bitcoin business or dealing with bitcoin is safe or it is dangerous.We ll see both positive sides and negative sides of bitcoin.So , Here we start.

How Bitcoin works?

To know anything about the bitcoin you should know how bitcoin is working or working mechanism of bitcoin.

Bitcoins are completely virtual coins designed to be self-contained for their value, with no need for banks to move and store the money.

Once you own your bitcoins, they possess value and trade just as if they were nuggets of gold in your pocket. You can use your bitcoins to purchase goods and services online, or you can tuck them away and hope that their value increases over the years. Bitcoins are traded from one personal ‘wallet’ to another.

You can also read basic steps to own your bitcoins if you want to at here.

Positive Aspects:

  • Low Inflation Risk : Only about 21 millions Bitcoins will ever be released (mined). The release of new Bitcoins is slowing down and it will stop completely within a few decades. We have a slowing population growth which is projected to stop at around 10 billion by approximately 2050 which roughly coincides with the last Bitcoin to be mined. There will be roughly 1 Bitcoins for every 500 people.One of the biggest problems with our current dollars and other currencies used around the world is inflation. Over time all currencies lose purchasing power at a rate of few percents per year mainly because governments keep printing more money.We can reduce the percentage of inflation.
  • Low collapse risk : Regular currencies depend on governments which fail occasionally. Such events either cause hyperinflation or a complete collapse of a currency, which can wipe out savings of a lifetime in day. Bitcoin is not regulated by any one government. It’s a virtual global currency.
  • Easy to carry : Not a real problem that needs a solution, but you can carry a billion dollars worth of Bitcoins on a memory stick in your pocket. You can’t do that with cash or even gold.

Negative Aspects:

  • Bitcoins Are Not Widely Accepted : Bitcoins are still only accepted by a very small group of online merchants. This makes it unfeasible to completely rely on Bitcoins as a currency. There is also a possibility that governments might force merchants to not use Bitcoins to ensure that users’ transactions can be tracked. In fact The Reserve Bank of India says that it has not given any license / authorization to any entity / company to operate such schemes or deal with bitcoin or any virtual currency. On 13 August 2017 Nepal Rastra Bank declared bitcoin as illegal.
  • Wallets Can Be Lost : If a hard drive crashes, or a virus corrupts data , and the wallet file is corrupted, Bitcoins have essentially been “lost”. There is nothing that can done to recover it. These coins will be forever orphaned in the system.
  • Fluctuation in price : This is the most important aspects of bitcoin and due to this I strongly recommend that do not invest more in bitcoins.The value of Bitcoins is constantly fluctuating according to demand.I have attached one chart by that you can clearly understand that is this safe to deal with bitcoin or not ? I will strongly suggest that Do not ever fall in love with the digits of the price of the bitcoin because it might be possible that you have invest much more amount in bitcoin and the prices go down rapidly.So , do not invest more and more money in it.
                                                                  Bitcoin Fluctuation Graph Since 2009

     

    Thanks for reading this blog and to know more things in terms of technology do visit GeekSpot . 🙂

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