Bitcoin is a digital form of asset which cannot be recognized in physical format. Described as a cryptocurrency, the idea of bitcoin was originated in 2009. Like our money exchanges, from bitcoin marketplaces, people can buy or sell bitcoins. The role of middlemen is eliminated in the world of Bitcoins.
Both buyer and seller are anonymous in a Bitcoin transaction. You can buy any stock, book a cinema ticket, flight ticket, or book rooms using bitcoins. Bitcoins are favorable to small scale business people as there is no strict laws or any other regulations. As the concept of Bank has no role in bitcoin transactions through bitcoin trading app, they are preferable in International Merchandise transactions. Some people consider Bitcoin as their choice because there are no credit cards and credit card payments. People can buy Bitcoin as an Investment.
You might hear of Coinbase, a popular market place for bitcoin exchange, where you can make any transactions within no time. Even though these exchanges are hassle-free, but there are chances for a security breach. In 2016, news of Bitcoin theft came from Bitfinex. Around ten million dollars were stolen through hacking.
Though suspect to a safety threat, creators install various security features in it. Using a mathematical algorithm, bitcoin keys are encrypted safely. This key similar to an account number, and people use this as an address to facilitate all Bitcoin transactions. Bitcoin users will award with a private key, which is the same as our ATM pin number. One must be careful in handling this key.
Even though every bitcoin dealing is documented in a public log, details of buyers and sellers are kept in secret. We can only see their wallet IDs. Bitcoin wallets are a digital platform that works the same as a bank. It is available on a user’s computer or cloud. With this wallet, users can send as well as receive money. This also facilitates payment, or you can consider it as savings. Dissimilar to banks, this money is not insured. One of its exciting features is that transactions can be done without tracking it simply. This feature made Bitcoins a favorable option for people who are indulging in online peddlings, such as other illegal activities.
Bitcoin works through a collective chain of computers. They are also known as nodes. They are using these nodes, storage of Bitcoin’s code, and functioning of the blockchain. You can consider the blockchain as an assembly of blocks. Each block is a compilation of transactions. Since all the computers operating, the blockchain includes the same catalog of blocks and transactions and can evidently look at these new blocks being packed with the latest Bitcoin transactions. So no person can deceive the system. Anybody, whether they operate a Bitcoin “node” or not, is able to witness the live transactions. To do a despicable act, a hacker has to run 51% of the computing power that builds up Bitcoin. As of May 2020, Bitcoin has almost 47,000. Day by day, this number keeps growing, and this ensures safety by making an attack not so easily possible.
In the incident when an attack was about to occur, the Bitcoin nodes, or the people who are participating in the Bitcoin network using their computer systems, would be easy to turn off a new blockchain. Thus, the attempt made by the hacker proved to be futile.
Coronavirus has had a vivid impact on the emerging industry of cryptocurrencies. Apart from the stringent rules planning by the authorities to control this currency, the new scenario also made a hit to Bitcoins. However, innovative companies are creating a lot of exciting products but even now, a lot of uncertainty bordering Bitcoin still today. Even though it can be considered as a quite mainstream asset now, it is so far to go in order to make it authoritative. Governments must take brave measures to regulate it and make it easier to buy/sell/hold Bitcoin. Until that happens, this cryptocurrency will remain to struggle in the middle of all the uncertainty by coronavirus. Hopefully, we can wait for a positive change coming in the ways of the Bitcoin market.