Around 2009 a new concept of currency was introduced. The concept seemed somewhat vague regarding the use of this currency but two years afterwards, Bitcoins has emerged as a fast catching trend. Proclaimed as a decentralized digital money, more people and business have begun utilizing Bitcoins. Although the currency is still in its experimental phase regular updating and frequent tweaking is done in order to improve it in every way possible. Unlike other banking networks Bitcoins are not controlled by anybody. The system has a pair of protocols protected by cryptography.
It’s a new payment system that has no central authority aside from the cryptography (open source software working together with the laws of math ) which handles the creation and trade, which makes it impossible to cheat around the system. The Bitcoins share a public ledger (block string ledger) where every transaction is recorded which makes it a notable triple entry accounting system and a transparent recorder. Using the peer to peer system and a cryptographic key, transactions are processed involving clients. Since the key cannot be deciphered it’s a safer type of internet money than performing transactions with credit and debit cards.
Like every new emerging trend, the Bitcoins have advantages and disadvantages. However, if the barriers are removed, it may help re-imaging of global finance. The advantages of Bitcoins are
The users have total control over the money, they can send and receive any sum of payments at the time of the day. Since paper wallet bitcoin aren’t done by organizations or banks but involving people its simple as sending a document.
The trades require no or very less money in comparison to other online money transfers that stick a hefty commission, the only real service in Bitcoins is accomplished by the miners to ease the transaction recording on the block which does not cost much.
This is the most protected and irreversible type of cash transactions where no personal information is exchanged.
Enormous markets and smaller companies have widely accepted it helps in faster and reliable cash transfers with very little administration cost.
When other currencies are influenced by price fluctuations, the same can’t be said for Bitcoins.
The downsides of Bitcoins are listed below, though they can be flipped around. The new rules and upgrades are being constantly worked on by various trusted parties to help shape this up.
There’s not any warranty and no buying power provided yet.
The Bitcoin cost has yet to stabilize, which may only occur when the amount of users and companies using bitcoins increase.
Client applications used as wallets can’t guarantee or offer insurance on the Bitcoins.
The money has yet to mature and get a better hold on the market.
The challenges confronted by Bitcoins are easily deterred. However, the money requires a stronger presence and better guarantees on the safety before it can be accepted widely by the general public as the simplest form of online currency. The concept at present is a prosperous online currency venture which is on an adventurous trail It has yet to be legalized and transformed from an experimental money. Though the future of Bitcoins is nothing but speculation, it has a favorable response from most of its customers and might just be the upcoming big thing.