You may have heard the term used somewhere before, but what exactly is “Bitcoin?” Sometimes hyped, often downplayed – what is this modern and mysterious form of currency all about? Let’s get straight to the scoop on this increasingly popular digital currency measured in Bitcoins.
History
We begin our exploration into this new form of currency by taking a brief look at its history. It was first dreamed-up and discussed in various online venues starting in 1998. The idea and motivation behind this theoretical new currency was that a network of digital cryptography should manage the currency as opposed to traditional methods of currency management administered by centralized authorities.
By 2008, ideas and theory were replaced by a real utilization of the new currency and its crypto-management system. The first developer and proven user of the system was Satoshi Nakamoto. Not much is known about Nakamoto at this point, but his initial investment in the currency’s use led to a widespread currency known all around the world today.
The System
Having covered the basic history of BC currency, the next natural query is that of the inner mechanics of how exactly this system works. In a nutshell, it goes something like this. As mentioned above, this currency system is designed to be managed by a cryptographic network system as opposed to people or government agencies. As described by the representative organization of the currency, “Nobody owns the Bitcoin network much like no one owns the technology behind email. BC is controlled by all BC users around the world.”
Furthermore, the organization states:
“While developers are improving the software, they can’t force a change in the Bitcoin protocol because all users are free to choose what software and version they use. In order to stay compatible with each other, all users need to use software complying with the same rules. Bitcoin can only work correctly with a complete consensus among all users. Therefore, all users and developers have a strong incentive to protect this consensus.”
“Cryptocurrency” Debate
For some, this type of currency is a utopian premise; the government can’t manipulate or control this currency, and it is controlled ultimately by the whole of all users and its network working together in-sync. On the other hand, there continues to be a great debate out there as to the credibility, stability, and legitimacy of this particular currency. Known as a “cryptocurrency” due to its sort of underground, non-mainstream nature, Bitcoin has been surrounded by a certain distrust since its inception.
Growth, Futures
Despite a general wariness and the currency’s embodiment of a government regulator’s nightmare, it has grown tremendously over the years. This growth has not only been in its actual use but also its overall perception. In fact, recent headlines have been filled with the news of the currency’s astounding growth to 50% above its starting valuation rates, putting it at a value of one coin per $1758.45. For those remaining uncertain as to this currency’s future, there is not much stronger proof of direction than news such as this.
As we rapidly approach a fully digitized age, perhaps BC is the appropriate and inherent currency form of the future. Its growth and solid performance certainly don’t indicate it’s phase-out anytime soon. Regardless of opinions though, this is the world of Bitcoin and its continued rise in the financial markets today.
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