Cryptocurrencies like Bitcoin and Ethereum has become a huge rage in the financial market. There are many people, who are wondering what this Bitcoin or cryptocurrency is all about. In this article, we will throw more light on Bitcoin. The reason why Bitcoin is very popular among the cryptocurrency is that it was the first cryptocurrency in the world. Cryptocurrency is digital money. You cannot hold them in your hand in a physical form like dollar or pound. All the transactions are done only electronically, and this type of currency has not controlled any government. You can trade this currency globally through digital means without any restrictions from the regulatory body. You can read this article www.businessinsider.in/Cryptocurrency-trading-volumes-are-going-bananas-right-now/articleshow/61971959.cms to find out the popularity of the cryptocurrency.
Cryptocurrency looks like numbered code like you see in the computer programming. Once you have purchased the Bitcoin, you would be able to buy things like traditional money. A person created this Bitcoin with a pseudonym – Satoshi Nakamoto. The creator of Bitcoin says that the purpose of creating cryptocurrency is to send money from one to another point, through digitally, without the intervention of any financial institutions. The creator also says that the Bitcoin uses cryptographic proof for the trust between the two parties, rather than a third-party financial institute. All the cryptocurrency transactions are recorded by secure blockchain, which is offered by the users, who provide the computing power. The users are rewarded for this activity by offering them the newly created currency.
The value of the cryptocurrency is determined by the current supply and demand. You can get the Bitcoin in different ways. You can buy directly from the individuals or from exclusive websites called exchanges that will offer Bitcoin as an exchange to the regular currency.
A bitcoin wallet is nothing but a computer program that allows you store the Bitcoin like a regular wallet. Bitcoin wallet can be used on your desktop computer or smartphone. Wallet helps you access the Bitcoin quickly when you need.
You can get more Bitcoin through mining process. However, mining is not easy for many people. Mining is done by solving a complicated math problem that consumes huge computer power and time. There is custom-built Bitcoin software that allows you find the Bitcoin quickly, without putting much power and time.
The second-generation cryptocurrency includes altcoins and Ethereum. These currencies have advanced functions. Considering the current situation, cryptocurrency seems to have bright future. Experts say that cryptocurrency has all the potential to replace the traditional currency all over the world.
There is also lots of warning about the cryptocurrency from the financial regulators and experts. The first reason is that cryptocurrency is not regulated by any regulatory body or country. This is one of the reasons why experts believe that the bubble could burst anytime. Many experts warn that Bitcoin is highly speculative and comes with huge risk. Moreover, the Bitcoin is badly exploited by the hackers and criminals. This is because the origin of the transaction cannot be traced.