Bitcoin in a nutshell
Bitcoin is the leading cryptocurrency or digital currency that was developed by a pseudonymous person or group called Satoshi Nakamoto. Bitcoin was actually a brainchild of another invention. It was not intended to be a currency, but an electronic cash system that uses cryptography technology to secure, process and verify transactions. It is similar to gold, silver or other invest-able assets, specifically because it has a great store value as well. It can be bought and sold or transferred securely between parties over the net. The supply of bitcoins is tightly controlled and only a small number of new bitcoins are made every hour until it reaches the maximum number of 21 million.
Decentralization is one of the most important features of bitcoin—they are totally free of government control or any central authority. So technically, they carry out transactions that use a peer-to-peer system that takes out the middleman and puts the user in charge, and since you are the only one who has access to your account, no one can ever freeze or prohibit you from accessing your Bitcoin wallet. Unlike fiat money where the government or banks can charge you fees or close your account for any suspicious activity; sometimes even without warning.
Transferring money online usually requires a high cost, like in some cases when the fee being charged is bigger than the actual money being sent. This is made possible because of Satoshis, the smallest unit of bitcoin, which is one hundred millionth of a bitcoin (0.00000001) or 0.00006332 USD. Technically speaking, Bitcoin becomes a better option to transfer small amounts compared to transferring fiat money, a currency deemed as legal by the government, through credit cards, wire transfers, remittance, etc. It made transactions verifiable, secure and immutable.
The absence of transparency from Bitcoin’s creator may have pulled in some judgment, however, its open-source nature means anybody can review the code. Allowing people to access the code will help people build trust not just based on the name or identity of a person, but also on their actual actions, or transactions in this matter.
How is Bitcoin today?
At the time of writing, 1 bitcoin is equivalent to 6,277.14 USD, with digital currency, people can purchase a wide array of services and items. One option could be for buying presents, some buy gift cards through Paxful, Gyft, eGifter, etc. Going on a trip somewhere? you can also pay for travels and hotels with bitcoins using online travel sites such as BTCTrip, CheapAir, and Expedia. Want something out of the ordinary? Virgin Galactic, a spaceflight company of the Virgin Group, started accepting bitcoins as payment in 2013 for its suborbital space to space tourists, and eventually orbital human spaceflights as well. Other major companies such as Microsoft, Overstock, PayPal, Subway, and Shopify also accept cryptocurrency for their products and services. Furthermore, the University of Nicosia Cyprus was the first university to accept tuition fees in bitcoin, and many educational institutions are following the trend.
There are different tech innovations that are greatly changing the way people learn, interact or even transact, and Bitcoin is one of those innovations in the financial aspect that gives solutions to prevailing problems that we encounter today.