Bitcoin: The Future of Currency
Bitcoin is a digital currency that was created in 2009 by an unknown person using the alias Satoshi Nakamoto. Transactions are made with no middlemen – meaning, no banks! Bitcoin can be used to book hotels on Expedia, shop for furniture on Overstock and buy Xbox games. But much of the hype is about getting rich by trading it. The price of bitcoin skyrocketed into the thousands in 2017.
How Bitcoin Works
Bitcoin is a type of cryptocurrency. There are no physical bitcoins, only balances kept on a public ledger that everyone has transparent access to – the blockchain. All bitcoin transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain.
Advantages of Bitcoin
One of the main advantages of using Bitcoin is that transactions are processed without the need for a third-party such as a bank or payment processor. This means lower fees for users. Bitcoin can also be used for international payments, as it is not tied to any specific country or government.
Risks of Bitcoin
While Bitcoin has many advantages, it also comes with its fair share of risks. The price of Bitcoin can be highly volatile, leading to significant losses for investors. Additionally, Bitcoin has been used for illegal activities such as money laundering and drug trafficking.
