Bitcoin (BTC) Review And Stats
Bitcoin History And Background
Created in 2009 by a person going by the name of Satoshi Nakamoto, Bitcoin (BTC) has become the most famous cryptocurrency. This means that Bitcoins are virtual money by which transactions can be made.
Bitcoins started as an electronic payment system that was developed by Satoshi Nakamoto in the hopes of creating a currency used online without any government’s or bank’s control. He wanted to have a type of currency that didn’t need transaction fees when doing business overseas. Bitcoin is then produced using mathematical formulas and algorithms that anyone can see. As of today, it is said that there are only 21 million bitcoins virtually and the smallest denomination is called a ‘Satoshi’ which is a hundredth of a million.
Unlike conventional currencies, Bitcoin has a way of tracking the transactions that made use of it. It has a public ledger called Blockchain and it is updated by miners. Miners are also the ones who make use of software programs to solve mathematical problems in order to gain Bitcoins.
In retrospect, the use of Bitcoins seems to be a beneficial move. However, there is more to it than just a simple exchange of virtual money. Here is a list of both strengths and weaknesses of the Bitcoin currency.
1. You pay lower transaction fees
Precisely one of the reasons as to why bitcoins were created, paying lower transaction fees is definitely one of bitcoins’ advantages. When you transact using this currency, you only pay less than 1% of the total price as compared to using other currencies that ask you to pay around 2-3%.
2. Nobody knows who owns how much
Another great thing about bitcoins is that even if there is a public ledger containing all transactions made, nobody knows who owns what aside from you. It is also not controlled by any government nor bank so your money is solely for you to spend or keep.
3. Sending money has never been so easy
Since all transactions are made online, an access to the internet and your account is all you need to send bitcoins. You don’t have to wait for a bank to open nor do you have to waste resources to get there.
1. Only a number of merchants accept bitcoins
Even if bitcoins are the most popular kind of cryptocurrency, only a number of merchants accept this as a mode of payment. Fully relying on bitcoins will not be enough to get you by.
2. Its value is highly volatile
This is a major weakness of bitcoins and some say it’s because there is no governing body to standardize its value. Because it is highly volatile, merchants would have to constantly adjust the prizes just to fit the current value of the bitcoin. On the other hand, owners of bitcoins could have a range of a thousand dollars with their bitcoins to almost a few hundreds with the same number of bitcoins.
3. It is dependent on your software’s security
In the same way that your wallet’s safety depends on how you keep and take care of it, your digital wallet’s safety that is stored on your phone or laptop greatly depends on the security measures you put around it. This means that when a virus suddenly corrupts your files, there is a possibility that all your bitcoins will be lost. There is no way to retrieve it yet so you will just have to consider them money lost.
4. Its attractiveness to fraud and scams affects its reputation
Bitcoins are no stranger to scams and fraud. Many bitcoin users are using this currency to trick people online and this greatly affects the prospects of bitcoin. With enough criminal activity, bitcoins could be facing its extinction.
Where To Buy and Trade Bitcoin
Bitcoin can be bought in many places including:
Bitcoin can be traded in following exchanges: