Bitcoin – The Cryptocurrency Explained
Bitcoin has taken the world by storm and introduced a new and disruptive concept of cryptocurrency. Prior to Bitcoin being introduced, this cryptocurrency was the first one to take it live successfully and implement it effectively. In many ways, Bitcoin is a market leader and after it was introduced, many alternative coins followed to create a thriving and decentralised system that has been growing steadily over the years.
What is Bitcoin?
Bitcoin is a collection of distinct and unique lines of encrypted code that can’t be copied and is always stored in a permanent record. This reduces the chances of fraud and makes every transaction secure. The blockchain is Bitcoin’s gift to the world of finance, because it has a lot of potential in real-world transactions.
What’s the history of Bitcoin?
Bitcoin was introduced in 2009, however the developer or developers started to work on it back in 2007. The coin was developed by programmers and developers under the pseudonym of Satoshi Nakamoto and was released to the public in 2009. Before it’s release, Nakamoto provided a whitepaper with all the information on Bitcoin and how it works in back 2008. This process is now replicated in ICOs and all prospective new coins are introduced into the market with a white paper.
Bitcoin’s first transaction occurred in January 2009 and the first block of transactions was called the Genesis block. This was the foundation of the Bitcoin blockchain and all subsequent transactions were added to this blockchain.
The first Bitcoin currency transaction took place on January 12 between Nakamoto and a programmer named Hal Finney. By October of the same year, the Bitcoin exchange rate was established at US$1 = 1,309.03 BTC. Bitcoin has come a long way since then and governments all over the world are now recognising it as a legal currency which is recognised in almost every country with just a few exceptions with governments now developing ways to regulate the market.
What’s the future?
Experts predict that Bitcoin will continue to grow and will possibly cross the $40,000 mark by the end of 2018. It already crossed $17,000 in a few sessions of volatile trading and no signs of stopping.
Bitcoin and other such currencies are a part of a highly volatile market that survives solely on supply and demand. This indicates that market values can rise or drop sharply in intranet trading often. One of the biggest factors that influence the future of this industry is the coin limit of 21 million.
Despite demand, the cryptocurrency companies will not create more so as to negate the negative effects of inflation and adds value to the coins in existence. With better regulations, improved stabilization and technology, the cryptocurrency world can thrive and grow to influence the real world markets as well. Bitcoin, followed by Ethereum, will be the market influencers for several years to come due to their high value and relative stability.
If you want to know more about Bitcoin and other cryptocurrencies, don’t hesitate to contact us at Hugosway.
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