For the past few years, Bitcoin has been one of the hottest topics, and in 2013, its popularity rose more than fifty times in the financial industry. The reasons why it rose so much in such a short is what this article is all about. Let’s talk about Bitcoin first. Bitcoin strategy is a digital asset set off to be able to offer the same easiness and convenience of a credit card and guarantees security in the case of foregoing its extra processing fees.
One of the best things about Bitcoin, apart from all the mentioned pluses above is that is a feasible means to exchange money and credit that uses cryptography to take control of its establishment and administration and does not depend on main and central authorities.
While people have been keen on the whole concept of cryptocurrency that Bitcoin has brought about, many people have overlooked bitcoin’s key innovation and its most important aspect: The Block Chain.
The blockchain is like a public registry or log book of all bitcoin transactions to ever be recorded. All the transactions from Bitcoin are verified on a one-to-one network when computers or such applications that are running bitcoin software, otherwise known as Nodes, reach a consensus, and that stops people from spending on it twice or forgery. Here, the blockchain comes into action.
It is the key to keeping bitcoin easily accessible and impartial, decentralized and safe. It makes sure that everyone having bitcoins has another copy of his transaction log and that all transactions are verified and authorized by the peer-to-peer network.
How Bitcoin has changed the world’s economic state
Considerably Reduces Transaction Fees – Unlike any other payment methods like PayPal, GooglePe, PayTm or Credit Cards, the cost of accepting Bitcoin is lower. There are no taxes to transacting with Bitcoin.
Payment is much Faster – It takes up a lot of time to accept cheques and wire transfers of money and payment through them also takes many days to clear. With Bitcoin, payment is much faster and hassle-free. This factor also states that Bitcoin changed the world
Complete freedom in Ownership of Currency – Your assets may be held back and they can even have your account temporarily suspended and lock you out of your own savings account in case if another available digital device proclaims it to be false, but with Bitcoin, you can be the one in control of your own account without any difficulty.
Removal of Chargebacks – With Bitcoin, you cannot chargeback. Chargeback fraud is mainly used by scammers and financial criminals and Bitcoin users are safe from facing the hassle.
Protection against Inflation – The government can print as much money as it wants which reduces the value of the overall currency, and may lead to cause inflation. But Bitcoin is safe from it since it has a fixed number when it comes to currency. That ultimately means that no currency will be produced again after they have been brought out. An important feature of a currency is its lack thereof but Bitcoin is safe from it. This is one of the major factor in how Bitcoin changed the world.