Bitcoin is a cryptocurrency, the 1st and still the most prominent. It is a new form of digital asset, created through a canny combination of encryption and peer-to-peer networking.
If you own a bitcoin, what you control is a secret digital key you can use to prove to anyone on the network that a certain amount of bitcoin is yours.
The most significant advantage and the only one everybody agrees on, is that bitcoin is decentralized and so incredibly resistant to censorship.
Bitcoin is not the new gold, but the comparison is not wholly spurious. One of the interesting quirks of bitcoin is that there will never be more than 21 million in existence. That figure is written into its source code and is a function of how the network rewards people who provide the computing.
All over Instagram and Facebook, encouraging viewers to invest in cryptocurrencies many people are taking the offer.
The billion-dollar question is WHY THE PRICE GOT HIGH?
The technology has had its booms and its busts, but if it is to become a worldwide digital currency, its value will be higher than it is today. In that narrative, the price rise is merely a reflection of the growing acceptance of bitcoin.
Majority of people say that the price rises due to buying bitcoin in the hope that they can sell it later for a high profit. A classic speculative illusion, some people will make much money – while others will lose everything.
The real question is When and How big the crash is?
It is three times from now; it had boom-and-bust cycles that destroy the vast amount of value, but it had still left the currency valued higher than it was before the boom began.
As the bitcoin network has grown its problems also grown. Technical reasons, the system as it was initially designed struggles to deal with the amount of traffic that flows through, leaving considerable delays in the amount of time it takes to be confirmed.
In a typical, centralized, business, that would not be a problem: just update the technology and proceed. However, a bitcoin update requires persuading every single miner to accept the new technology – otherwise, the old miners who carry on running the old version are efficiently running different from those who have updated Technology.
It called Hard Fork, and for the existence of bitcoin, it was the nightmare every developer tried to avoid. However, recently, the community is divided and have become so fractious that multiple hard forks have occurred all around how to deal with this slow traffic.
However, the most significant advantage and the only one everybody agrees on is that bitcoin is decentralized and so incredibly resistant to censorship. It made the haven for activities from cybercrime and drug trading to enabling international payments.