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Bitcoin has been witnessing a fascinating rise in its price and it is just one of the reasons why more and more individuals are finding it interesting. The popular crypto-currency has achieved a phenomenal status and has gained global acceptance.
Mystery shrouds its creator
It is a well-known fact that the exact identity of Bitcoin’s creator continues to be illusive till this date. Although some people believe that it was Satoshi Nakamoto along with others including Craig Wright, Dorian Nakamoto, and Nick Szabo who must have developed the world’s most popular digital-currency, there are many more individuals whose names keep on surfacing as creators of Bitcoin.
With more than one million Bitcoins in possession, Nakamoto is claimed to be the most influential individual in the domain of digital currency.
Restrictions on number of Bitcoins
Bitcoins must be mined if you want to generate the new ones. This might make you feel that there cannot be any upper limit o the total number of Bitcoins in circulation. However it is observed that the process of mining a Bitcoin is getting more and more complex.
This has severely restricted generation of new Bitcoins. There is a pre-determined schedule to limit this number which is close to 21 million Bitcoins and this explains growing complexity of mining new Bitcoins.
Untraceable transactions
Bitcoin transactions are executed by using alphanumeric addresses that consist of thirty four characters. It is virtually impossible to trace the sender as well as recipient by using the address. No wonder, most of the illegitimate deals are executed by using Bitcoins. Hackers prefer to collect their ransom in Bitcoins for the same reason.
Surprisingly, the first ever transaction which was successfully implemented by using Bitcoins was to purchase a $ pizza in 2009. Around 10k Bitcoins were needed to buy the pizza that was priced at $25. This also provides a hint at how the price of Bitcoin has galloped against dollar over the years.
Bitcoin is backed by a massive computing power that exceeds the total power of all supercomputers of the world by a huge margin.
Bitcoin crosses all barriers
With its successful trial in the outer space, Bitcoin has broken all barriers of distances. The three dimensional model of Bitcoin was launched by using a weather balloon and the entire travel was tracked by using a GoPro that kept focusing on the paper wallet as well as the Bitcoin model.
There were two successful transactions made at paper wallet including the one at 20th KM and the other at 34th KM.
Bitcoin needs secure storage
Although, it is not possible to use a Bitcoin unless it has been given to you, one must ensure secure storage of the Bitcoin possession. If you happen to lose your Bitcoin wallet, then you will not able to retrieve it again. The money will be lost forever. Unfortunately, no banks have facility to store Bitcoins, since it is a digital currency.
Lacks decentralized features
It is found that handful people possess major share of Bitcoin and there are fears about its imminent fall in the future. Bitcoin has assumed a phenomenal status in the digital world because of the colossal growth in its price over the years. Fluctuations in the price of Bitcoin lead to the volatility of this digital currency.
In the year 2014, Bitcoin suffered a huge downfall in terms of its price against dollar as it nosedived 62 percent in the value. This fall can be attributed to a huge growth in previous years that touched 20566 percent in 2010 and 5448 percent in 2013.
This may create a feeling that Bitcoins can only be used for high value transactions because each Bitcoin is worth thousands of dollars. Relax, you can also use the currency for purchasing day to day necessities such as pizza or movie passes.
The most noticeable advantage of Bitcoin or any other digital currency is that a small fraction can also be traded. Bitcoin can be used for as low as right decimal places and one such fraction is called as Satoshi. No other traditional currency can offer such an advantage.
Mining of Bitcoins
According to some of the available definitions of Bitcoin mining process, it relates to addition of the crypto-currency in the way that resembles mining of precious metals in terms of the time taken for such physical activities. Every time a Bitcoin is created, a log is also created to credit the person for his or her contribution and a name is assigned to the log.
The first ever mining of Bitcoin is credited to Satoshi Nakamoto and the log was aptly named as a genesis block. It is the responsibility of Bitcoin miners to create blocks for storage of Bitcoins they have mined.
Takeaway
Bitcoin has gained a charismatic profile, thanks to the celebrities and organizations that have been associated with it. They are Actor Jet Li, Spice Girl Mel-B, Lamborghini, Winklevoss Twins, and Wikileaks to name just a few. This digital currency is sure to be part of the future of the digital world through the current century.
