Money plays a very important role in our life. It is with this medium that we can buy and possess many things. Although different countries have varied currency brackets, it is important to look into the future rather than sticking to the same kind. With advanced technology, new business ideas are bringing several changes to the current system. One of the most famous inventions of this century is bitcoin. It is a cryptocurrency that only has a virtual existence or is formerly known as a digital currency. It is a kind of money that is fully virtual and does not have any physical form. It is cash but in the online version. Now, people can buy and sell any product or service but must be careful as it is not accepted everywhere. There are also several confusions regarding the bitcoin price as many countries have withdrawn its support and do not give potential to its growth or have banned it altogether.
Although old, in some countries, people prefer to use bitcoin currency as they feel comfortable in this mode of payment. There are several aspects that are considered while deciding on the bitcoin, the first being the origin, technology used, and the utility of the same. The initial launch of bitcoin was found to be in January 209 by some unknown developers.
Why is it used?
The bitcoin currencies are used as they deliver more benefits than the usual cash system. Let us look at some of the benefits associated with the same;
- It is peer-to-peer trading that does not allow any intermediary to control.
- There is no need for sales tax.
- Lower transactional fees as compared to the other forms.
- Quicker international transactions.
The bitcoin price is basically based on the blockchain. It is a secure, time-efficient, and decentralized version of record-keeping. This is one of the main factors that keep bitcoin to be an incredible tool to use. The pricing of this digital currency is mainly based on the market. It is listed on almost all cryptocurrency exchanges giving it different variations of the price according to the selling price. Another important factor that determines the price is market liquidity. Be it political or technological events, it has a fluctuating degree of influence. Most people consider investing in bitcoin to be risky as the price can be extremely volatile. Currently, the market capitalization of this system is around $157 billion and it is also considered to be the biggest phenomenon to happen in the finance sector.