DS News

Is Bitcoin Unnecessary?

Bitcoin

With the emergence of Bitcoins, the Cryptocurrency market opened up in 2008. The anonymous developer, Satoshi Nakamoto tried to sell the concept of Bitcoin to the world in two distinct attempts. He cited not being able to trust the financial institutions as a reason to replace intangible money with Bitcoins.  According to him, in the case of cash and coins, there can be no reversal in transactions. However, in the case of transactions that include banks as mediators, faulty transactions may occur.

Thus, to put a stop to this, Nakamoto finally launched Bitcoin in 2008. The basic problem that Bitcoin solved regarding virtual money is that it cannot be double-spent any longer. Bitcoin uses Blockchain technology which makes it impossible for such a glitch to happen. All data regarding transactions is encrypted in the blocks of the public ledger. This system has been built for an interesting purpose.

Features of Bitcoin

Problems with Bitcoin

Even though the news of Bitcoin’s success has spread like wildfire and has attracted a wide range of investors, few problems remain at the heart of the situation. They are discussed below:

Without the circulation of the currency, its acceptability would make no sense. If the number of people using Bitcoins is bleak, it cannot possibly become a currency. It takes worldwide acceptance for it to become a currency.

Conclusion

For Bitcoin to gain a prominent position as a currency, it has to resolve its intrinsic issues. It holds myriad possibilities, awaiting realization.

Exit mobile version