Bitcoin has been around for some time now, but most people still have a hard time defining it.
Whilst we tend to think of Bitcoin simplistic as a form of currency, the fact is that it’s more complex and interesting than that.
Its blockchain technology is redefining the way we think and structure systems online for payments online, databases and even the whole way the banking system works.
Bitcoin is digital and decentralized.
That means that though at the moment it’s still subject to huge fluctuations when compared to a regular currency, it also means that it’s not subject to any Governmental or Centralized Bank control. Its premise is to ensure a wide liberty of exchange whilst maintaining anonymity.
The way Bitcoin operates means that funds can be transferred to anywhere in the world with lower fees, as well as a faster, cheaper and safer transaction.
Regular money is controlled by Banks and Governments whilst Bitcoin is controlled by whomever owns it.
So who actually uses Bitcoin?
Idealists that wish a decentralized and free currency that can be exchanged without boundaries or regular fees. It costs the same sending money to your neighbor as it does to the other side of the World.
It’s a safe way of operating a transaction without worries about identity or card detail theft.
This is a big one as the Bitcoin market moves Millions every day. Being volatile still as it is, big investors can expect gains of 10% in just a few minutes – or losses of the same and increased amount should prices go down. Beware it’s a very unpredictable market that moves many millions in single transactions.
People that for any reason desire to be anonymous. Bitcoin transactions are non-traceable unlike any regular currency ones. Perhaps you just don’t want to feel the control of Institutions so it’s a good way to transfer funds.
People that don’t actually buy and sell Bitcoin to make money on the short time but keep investing (buying) with the belief that the currency will play a big role in the future. These are usually known as “holders” and believe that whatever money invested now will face huge valuation with the years as Bitcoin adoption becomes more frequent.
Companies and Businesses.
Some big Companies and Businesses already take Bitcoin as means of payment. With the acceptance that Bitcoin is in fact a valid form of currency that can be exchanged for goods and services, we have gone a long way since the early days.
Banks and Countries.
Impressed? You shouldn’t. Big Banks and Countries also have deposited some faith in Bitcoin and see it as a future investment worth looking at.
As big Banks make moves on the Bitcoin market and accept it as a valid asset, it gives Bitcoin credibility amongst the general public and tends to fortify its position as well as making it a less volatile investment.
As time goes by and Bitcoin becomes a more common form of currency and its technology is adapted to other branches of business, we will very likely see more applications to this technology that has the crown for making us rethink what we thought we knew about money.