We are living in thrilling times thanks to advancements in technology. Our continued reliance on the internet, and the way that the field is growing, has shown that these changes are going to be permanent. One of the most exciting areas that the internet era is focused on is that of blockchain technology. Specifically, we are talking about the invention and fundamental progression of the cryptocurrency known as Bitcoin. If you are not familiar with cryptocurrency, websites like https://www.abra.com/cryptocurrency/bitcoin/, can help to get you a rounded understanding. With that being said, we’re going to do our best to outline what cryptocurrency is, the impact of blockchain technology, and the ultimate goal of Bitcoin.
The Rise & Future Impact of Bitcoin
Let’s start off our discussion in a simple fashion. We’re going to break down what a cryptocurrency actually is so that you can understand why Bitcoin has so much importance to the future of our day-to-day life. A cryptocurrency is a digital currency that can technically be used just like any other regular currency, such as the U.S. dollar or even gold. Cryptocurrencies rely on a foundation of encryption in order to regulate the creation of the coins and the monitoring of how they are traded. The primary goal of a cryptocurrency is to remove any sort of centralized financial figure from the equation. Essentially, cryptocurrencies are seeking to deregulate the financial market so that it can be controlled in an independent and fair way. Now, where does Bitcoin come into play?
1) What is Bitcoin?
Bitcoin is one of the first cryptocurrencies to find viability on the open market. Developed by a man hiding behind the pseudonym Satoshi Nakamoto, Bitcoin first found its way to the internet back in 2008. Nakamoto proposed Bitcoin via a White Paper and within a year, the coin itself would find its way to market. Nakamoto’s goal was simple, he wanted to create a currency that could be cultivated, monitored and traded by a secure and independent system. In essence, Nakamoto wanted to run banks out of business.
2) Why is Bitcoin important?
Let’s take a moment to step back and away from our concept of money. Let’s look at how traditional currency is controlled and traded. If you are American, your government can print out dollars whenever they wish. The government simply presses a button and more cash gets printed, thus deflating the value of your investment. With Bitcoin, you will never experience inflation. Why? Bitcoin was programmed via a mathematical equation that limits the very creation of the coin. One day, there will be no more Bitcoins available to be mined. The value of Bitcoin is programmed into the equation and no government can change that. For that reason, major financial institutions are panicking while governments around the world are seeking to limit the access of Bitcoin.
Bitcoin offers a world of benefits to proponents of free, private trading. Bitcoin can change the world if it is allowed to grow. The only question we have is this: will major governments allow Bitcoin to prosper?