Bitcoin is the most popular cryptocurrency in the market. Though it is not so valued like it was valued in the past but it continues to enjoy a big place in the financial world of cryptocurrencies.
It was introduced by Satoshi Nakamoto in the year 2009 when it caused a big stir in the financial world. With the introduction of Bitcoin, the concept of cryptocurrency was introduced for the first time and it also pioneered the techniques on which all other cryptocurrencies are based today. Bitcoin has gained so much reputation that it is now used significantly by many big retailers like Amazon, Subway, Victoria’s Secret and more.
All the users of Bitcoin make a combined effort to keep Bitcoin’s transaction record or ‘ledger’ as done by other cryptocurrencies. A proof-of-work system is used by the users of Bitcoin to compete for the next entry’s right to record. Every computer on the system spends a portion of its processing power to get a chance for verifying next block of payments with the aim of receiving a small Bitcoin amount as a reward. This process called ‘mining’ is there to randomly split the task of payments verification among all the users of the system in a fair manner.
The Bitcoin system has a proven record but has some major concerns. There is possibility that one group or individual can control more than half of the processing power on the network and thus rewrite ledger by winning the right to verify payments. Another concern is the immense power consumption required by Bitcoin which can cause sustainability concerns for the Bitcoin currency.
Bitcoin is still highly volatile, nearly 18 times than the US Dollar. The potential advantages of Bitcoin are its ability to transfer securely across countries, anonymity and no control of the central government.
Where to buy Bitcoins?
Want to buy or sell bitcoins? Click on the following companies to find out the best place for selling and buying Bitcoins in Australia.
Want to find out the price of Bitcoin live? View our Bitcoin calculator and see the value of the coin now!