Bitcoin: Is it hype or realty?

As we mentioned earlier, there are diversified opinions on most popular digital currency Bitcoin. There are around more than 4K cryptocurrencies exist in the world but the one the most people are discussing about is bitcoin. 

It’s digital currency but instead of dollars and cents. Unlike the dollar, euro or yen this bitcoin hasn’t controlled by the government. That makes bitcoin as most revolutionary and some believed fear to invest in bitcoin because of not having any regulatory control. Currencies are just paper, metal and number in your bank account and it’s value is guaranteed by the government or central bank. That’s the reason people trust traditional currency.

Bitcoin came into existence to overcome the loopholes in traditional banking system like double spending and elimination of broker charges in transferring the money from one account to other. The idea is transfer money from one account to other using peer-to-peer (P2P) network without going through a financial institution behind the creation of bitcoin. It emerges when global financial crisis was happened in 2008. It’s just coincidence that bitcoin emerges at same time and it is going high and high even after 10 years. It is called as cryptocurrency because bitcoin uses encryption to keep it secure. People can able to buy and sell the cryptocurrency using Public and Private key through blockchain technology. Though there is no bank to verify the transaction, but the transactions in digital ledger is being verified by huge number people who are there in that blockchain.

There is no chance of getting fraud and hack in P2P network in blockchain. Information stored in blocks and each block has it’s own and previous code to add another block in blockchain technology. Bitcoin is seen as a hedge against all odds and inflation. Bitcoin has supplied more than 21 million Bitcoins where 17 million Bitcoins are in circulation. Bitcoin’s supply is capped while demand grows. When you see the value of Bitcoin with other currencies has been far from the stable. There is volatility in value of Bitcoin. We can assess the reasons for falling financial markets but we can’t assess the similar in Bitcoin market. But some big companies promote Bitcoin. Paypal announced to it’s customers to sell, buy and hold bitcoins using it’s app. Followed by, Tesla start promoted by making the payments to it’s employees and Elon Musk open investment in Bitcoin take the value to peaks.