What’s trending? Cryptocurrency sits pretty comfortably on the trend list. In this modern era where everything seems to become cashless, the importance of cryptocurrency increases drastically. Cryptocurrency is basically becoming the need of the hour in this cashless society. People who were unaware of the benefits and facilities which crypto provides, gradually showing immense interest regarding cryptocurrencies. This is because of the world’s progression towards a cashless society.
- Bitcoin – First ever cryptocurrency
- Mastermind behind Bitcoin
- Benefits and Features of Bitcoin
- Bitcoin – Best coin to invest
- Bitcoin – Father of all Altcoins
Now let’s focus on the Bitcoin cryptocurrency and what impact it made in this modern world.
Bitcoin – First ever cryptocurrency :
Bitcoin cryptocurrency is a digital or virtual currency that is meant to be a medium of exchange. Bitcoin cryptocurrency are NOT CONTROLLED BY ANY CENTRAL REGULATORY AUTHORITY. A cryptocurrency is quite similar to the real-world currency just that, it doesn’t have any physical embodiment. As cryptocurrencies are virtual in nature, Bitcoin uses cryptography technology and blockchain system to carry out the whole process. No centralized authority can control or influence the value of Bitcoin cryptocurrency. It is the decentralization aspect in which no central body can control and manage the transactions.
Cryptocurrencies are not backed by the government while fiat currencies have been declared to be legal tender by the government. It is a medium of exchange which is managed by ”CRYPTOGRAPHY”. Cryptography is a technique of encryption which helps to have a safe and secure way of transactions. Bitcoin and several other cryptocurrencies use encryption algorithms and cryptographic techniques such as hashing functions, public-private key pairs etc. Hence, decreasing the chances of fraud and forgery while the transaction takes place. Being decentralized in nature, there is no government intervention in cryptocurrencies. It depends on the blockchain technology.
Bitcoin are virtual or digital gold. The value of Bitcoin and other cryptocurrencies fluctuates like the value of gold. With a worldwide scope, cryptocurrencies are comfortable, fast and secure means of payment. In terms of trading volume, Bitcoin is the largest cryptocurrency in the world followed by Litecoin.
The Anonymous founder :
Cryptocurrencies came into existence in the year 2008 as a product of ”SATOSHI NAKAMOTO” the founder of ”BITCOIN CRYPTOCURRENCY” whose true identity is yet to be verified. He never intended to develop a currency, but a peer-to-peer network with no central authority. He certainly found a way to build a decentralized digital cash system.
– The official founder of Bitcoin is Anonymous and still not found.
– It’s been more than a decade now since the birth of Bitcoin cryptocurrency and we are yet to witness the real mastermind behind it.
– There is no CEO or official founder for Bitcoin cryptocurrency as of other Altcoins. Hence, this differentiates Bitcoin from that of other Altcoins.
– No Altcoins could match up with the Bitcoin till date.
Bitcoin has attracted millions of users in this long journey. The popularity is increasing day-by-day. By considering the fact that cryptocurrencies could well turn out to be the future currencies, we can expect the brightest future ahead for all the existing and upcoming crypto coins. The word cryptocurrency is ultimately linked with Bitcoin. Whenever someone talks about cryptocurrencies, the word Bitcoin would surely come to mind.
Benefits of Bitcoin :
Bitcoin has plenty of benefits which generally catches the eye sight of the users. One of the important benefit of Bitcoin is that it is decentralized in nature. There is no central power to control the supply. No banks and governments can control the transactions of Bitcoin cryptocurrency.
Most of the people lack the knowledge of how crypto can be transacted from one person to another person and vice-versa. I’ll be guiding you below of how the digital transaction takes place in cryptocurrencies.
Modern currency includes credit cards, debit cards and digital wallet such as Paypal, Amazon pay and Paytm which are controlled by central authority like banks and governments.
Imagine a scenario doing an online transaction, you are thanking your friend for paying for your breakfast and you tell him that you will send the money to his account. Now, this transaction becomes successful, but there are several ways where this could’ve went wrong. For example; there could have been technical issues in the bank, their systems could have been down and so on. Here, the central point of failure is the bank. To avoid such failures of transactions, the future lies with cryptocurrencies.
Bitcoin – No central authority :
As there is no central regulatory authority, the chances of failed Bitcoin or crypto transactions are reduced to a much greater extent. Bitcoin can be sent or received directly between two parties via public or private keys. Minimal fees charged is also an advantage which the Bitcoin users enjoy during the transactions. Bitcoin provides you the luxury of a safe and uninterrupted transaction process.
Now let me tell you an example in which Bitcoin cryptocurrency transaction takes place.
Tim gives 1 Bitcoin to Steve and is signed by Tim’s private key. After signed, a transaction is known almost immediately by the whole network. In this transaction, there is no intervention of any central authority. The transaction thus takes place directly between the two parties.
Why Bitcoin is the best to invest? :
Thinking to invest in cryptocurrencies? Let me help you by choosing out the best coin that assures the best return to your investments. Bitcoin is certainly the best coin to invest and get assured returns. 1 Bitcoin = 7585 USD as of now. The value keeps fluctuating as it has been since the time of existence. Bitcoin uses blockchain technology and also various cryptography techniques to carry out the whole process.
Key features of Bitcoin :
- 1st ever cryptocurrency in the world.
- Relatively faster when compared to the traditional currencies.
- No central power to manage or control the transactions.
- Less risk of failed transactions.
- Minimal transaction fee is charged in the Bitcoin transaction.
- Safe, secure and convenient way of payment.
- Modern method of digital money transactions.
- Cannot be controlled by any country.
- Lack of true verification of founder. Hence, results in reduced price manipulation.
- The supply cannot be controlled.
- The value of Bitcoin fluctuates like the value of gold.
- Very less chance of fraud.
- Minimal risk involved.
- Stores funds of other Alternative coins.
- Father of all Altcoins.
The above are some of the highlighting facts about Bitcoin cryptocurrency which makes it one of the best coins to invest. Bitcoin has millions of trusted users and it is gaining immense popularity at a rapid pace.
What differentiates Bitcoin from Altcoins? :
Apart from Bitcoin, all cryptocurrencies comes under Altcoins. Altcoins is a combination of two words i.e Alt that refers to ”Alternative” and Coins that refers to ”Cryptocurrencies”. So basically, the word itself describes that Altcoins are alternative cryptocurrencies to the first-ever digital currency Bitcoin. Altcoins can be differentiated from Bitcoin in several ways. A few of them is listed below.
> Difference in the economic model.
> Different proof of work algorithms.
> Different techniques of coin distribution method.
The most essential thing which differentiates Bitcoin from Altcoins is that Bitcoin does not have CEO or founder like Altcoins, Bitcoin is run by community.
Litecoin’s CEO is Charlie Lee and similarly, all Altcoins have CEO or founder respectively except Bitcoin. This is actually a blessing in disguise for Bitcoin cryptocurrency. This eliminates the risk of price manipulation as there is no official CEO of Bitcoin.
Wrapping it up :
The other popular Altcoins have also grown tremendously in recent times. The true identity of the Bitcoin founder is yet to be verified and hence, there is no risk of manipulating the price like other Altcoins who have a specific founder or CEO. Altcoins are storing funds in Bitcoin.
Even though several alternative coins evolved in this technological era, Bitcoin still tops the list of top cryptocurrencies in the world.
”BITCOIN IS THE FATHER OF ALL ALTCOINS”.