You may have seen the currency of your country and so know for certain how it looks like. Given that Bitcoins are a completely digital currency, it is natural to wonder what they actually look like. Of course, the answer is that they do not have a physical appearance since they exist solely as digital data. For many people around the world, Bitcoin cryptocurrency represents a new and unfamiliar concept, which is why it is essential to gain a deeper understanding of this currency to fully appreciate its potential.
An Appreciation Of Bitcoins
Here are a few aspects that will make you view this new currency in a whole new light.
Bitcoin – A Cryptocurrency
Bitcoin, you may think of it as a coin or some form of currency that is wholly new to you. But it is not a currency in the traditional form. Rather it is a currency that is digital in nature. It is secured by encryptions or cryptographic codes. And to read the codes you would require a pass key which will be unique to you making the item free from fraud and hacking.
Bitcoins Have Global Recognition and Acceptance
The fiat currency that you have right now in your pocket or even in your bank account is applicable and valid only in the country where you live in. Am I not right? This is because this currency is in full control by the government presiding in your country. But that is not the case with Bitcoins. They are applicable and can be used in any country irrespective of which exchange or app or platform you are linked to. You may be linked to immediate profite but you can use your Bitcoins anywhere across the world.
Bitcoins Are Reliant On Blockchain Technology
Bitcoins are heavily reliant on blockchain technology. The unique identification feature of Bitcoin is its blockchain technology, which ensures modernity, safety, and transparency of the system. It is a decentralized, open, and distributed ledger that prevents any possibility of double-spending or reversal of transactions once they are secured. This feature makes the system almost immune to any kind of fraud.
Bitcoin Transactions Are fast and Hold Nominal Fees
It is by now known to everyone across the world that Bitcoin transactions are super fast. They can be completed in a few seconds, unlike the banks where it takes days for the transactions to go through. The fees are all nominal as against the bank fees. The best part to be appreciated is that there is no middleman who can loot you of a few thousand.
Bitcoins Are Volatile
Despite the kind of clamor and din there is to Bitcoins, it is your prerogative to know that the coins are highly volatile. There is simply no way you can predict its price swings and may lose money or rake in huge amounts. It all depends on which way the coins swing for that day or even moment to be specific.
Bitcoins Have Not Yet Found Global Acceptance
Despite the hype and popularity surrounding Bitcoins, it is important to note that this digital currency has not achieved global acceptance yet, and there are still many countries where it has yet to gain a foothold. For example, China remains highly opposed to all forms of cryptocurrency. As an investor, it is crucial to be aware of these factors before deciding to invest in Bitcoin.
Why Is Cryptocurrency So Much In Demand?
Despite the many drawbacks that cryptocurrencies or Bitcoins have, they are still an asset class to be dying for. Most people across the globe crave for those assets day in and day out but they do not have the means to collect them. What are its reasons for such high demands? The reasons are:
- Fund transfer with this asset is much easier and convenient and without third-party control
- It is much cheaper to transact with Bitcoins than use conventional banks
- The payments made thereof are very secure and give you anonymity
- You safely store your assets in an account that is locked by a private key stored in your e-wallet
- Your private key is totally known to you alone
- The fees charged are nominal
- Some insurance and pension funds are investing in Bitcoins
Bitcoins origin is mysterious. But the name of its founder’s name is known. Satoshi Nakamoto is said to have acquired 1 million Bitcoins in the very crucial and starting stages. This shows that he knew the potential of the coin and thus the huge investment. So you too can safely try your hand.
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Review An Insight Into The Digital Currency – Bitcoins.