BITCOIN – CURRENCY OF THE FUTURE?

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Money as a means of payment has been around for centuries. Its conception and development happened over time, in stages. From time immemorial, humanity has come to the conclusion that it was necessary to come up with a unit of measure for trade that would be universal and changeable into everything. Which created the opportunity to buy and sell products at the exact cost. In the wake of this idea, the idea of ​​a universal equivalent unit was formed. The human-trading unit was various at different times, such as wheat, cattle, gold coins, banknotes, and so on. Today, a new, revolutionary unit has been added to this list, and it is electronic money-cryptocurrency. Currency whose value reaches a record high on the stock exchange.

The history of cryptocurrency dates back to 2008, when the first digital currency — Bitcoin — appeared. The author of this innovation is the anonymous programmer «Satoshi Nakamoto», who developed and put into circulation the Bitcoin protocol. Unlike standard currencies, cryptocurrency is not tangible, it is generated, stored and spent electronically. Large technological and mathematical processes are carried out to create a digital asset, actually it is a complex system scheme. The process of creating bitcoin is referred to as mining, and miners are directly involved in the process.

What are the advantages of e-money over traditional currency?

This is the question that arises in relation to digital assets. Whether it can bring additional benefits to the person and in general, whether it changes anything in the matter of money circulation.

Let us review the topic based on a few examples.

  • Bitcoin network is decentralized, which means that there is no central controlling body that can interfere in cryptocurrency policy. It is an independent financial model.
  • It is very easy to connect to the network and start making electronic money, creating a Bitcoin address in just a few minutes, without paying any commission.
  • One of the main advantages is the simple and convenient system of transaction redirection. Which implies the execution of a remittance in the shortest time, with a very small commission fee.

Bitcoin, which has also been dubbed the «money of the future» and is predicted to be even more successful in the future by experts. Nowadays, a lot of people are involved in the production of cryptocurrency, which is due to its high exchange rate on stock exchanges.

The digital money generation system is completely dependent on electricity, which increases the demand for this sector. This is not a problem for large states, although many countries have had to suspend so-called mining for this reason.

Editor’s blog

Source: https://time.com/, https://www.investopedia.com/

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