Sunday, 25 December 2016

What is Bitcoin ?


Bit coin is a Digital Currency and a payment system which was created by a programmer name satoshi nakamoto. It was introduce in October 2008. Bitcoin is the first decentralized cryptocurrency where no physical paper and bank was needed in order to make the transaction. This what makes this currency so popular and robust itself which predicts it's upcoming future. Most of the flaws which we currently have in our monetary system can be easily controlled under bitcoins. For example like our current biggest problem in the economy is fake currency where additional currency can be printed and we don't have any controlled over it . In Bitcoins this is not possible every transaction goes through Block chain where it is first identified and then put in to the open ledger which can be seen by every one. But it does not mean Bit coins are completely safe and there is no flaw. it has it own challenges like it's value stability which is affected by three factors buyer, seller and miners. Although 72% of the total are already generated and 30% will be out in next 4 years after that we are only left with buyers and sellers who are going to impact the market because they are limited and only 21 million of bitcoins we can ever produce.  

Since Bit coins numbers are already fixed so generating fake is not at all possible in this system. Now the question arises if numbers are fixed then how can it be possible for entire world to use this currency. Then solution is already available it  has divided up to eight digit and lowest digit is called satoshi. Which means as soon as the uses increases value of each satoshi is going to be increase. That's why we see lots of ups and downs in Bitcoin value on daily basis.

Now the next question is how to buy bitcoinshow to buy bitcoins ? There are lots of vendors available who provide wallets. Above link will provide you all details about bitcoin wallets. These wallets not only allow you to buy but also provide trading platforms and real time price against other currency. Since we all know that there is lot fluctuation in this currency we never know what would be the value in next half an hour so before we plan any investment we should religiously follow the bitcoin news. It will help us to know when investing money will be fruitful. 

Future Of Bitcoin


Every one has it's own view but future is not certain for this digital currency. With numerous benefits it has some serious flaws . Since it is decentralized so tracking payment and  it's source of origin could be difficult task. Most of the illegal activities are being financed through it which is an raising alarm of it's controlling and tracking. And due to this some of the countries have banned the bitcoins. But as per the experts this is the future currency which we are going to use and have unlimited benefits. It works 24*7 with less fee and peer to peer instant transfer as compare to bank where there is working time slot , transfer takes time and it cost lot of money as well.

As per the expert analysis bitcoin rate would be much higher in coming years due to increase the number of buyers as we know there are limited numbers of bit coins in the market so it would lead to higher prices. So there is race of collecting as many as we can. We never know how much rise it can take in future and how much profit we can earn with few numbers of bitcoin. In year 2009 1 Bitcoin was some where $6 and in 2017 it reached at $1100 by looking this it seems it has a great future. At this point of time Bitcoin investment will surely give us good return as compare to any other investment but we need to make sure to follow the bitcoin price chart in order to estimate the future. It gives an idea of rise and fall of the currency and duration of its stability

Current Challenges in Bitcoin

Transaction Volume      

The biggest debate over this is how it is going to handle the volume of transaction like it's competitor  visa handles around two to three thousand transaction per second and has potential to handle over 56,000 transaction per second. where as bit coin supports only seven transaction per second. Which means as soon as volume increases payment confirmation duration will also increase.  Imagine you went a grocery shop and made the payment via bitcoin and it taking more than half an hour for payment confirmation. We will surely would not like any such currency at the cost of our time.  Before we consider this as a future currency we need to understand it should have at-least all the features which we are currently have in our monetary system. 
Visa TransactionNow the only solution is that they have to increase the size of block chain but it is found the block can be increased up to 1 mega byte from it's current size. which means the maximum it is going to handle is 27 transaction per seconds which is still not enough to meet our market demands. As per the experts Bit Coins block chain need to be restructured completely before we accept this as a global currency. So it is too early to say that it is going to be our main stream currency.


Bitcion Security

It is the next most challenging and serious issue associated with this currency. A Trojan is able to capture the wallet details store in hard disk and can get access in your account. There were many news in the past where bit coins were stolen.



We all are aware thing which is our greatest strength is also responsible for our weakness same goes this with bitcoin. Due to it's decentralization this being used in illegal activities for goods and services which is quite difficult via bank transfer. Here we are not bound to provide any explanation no need to file any paper against the payments we are making. We can just simply transfer the money to the recipient without any interference. Currently we have not provided any solution in this area but we surely need to work on this other wise the dream of making its main stream currency will never be possible.

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