Understanding what Bitcoin and Cryptocurrency are, and the impact it has on our society’s future as a whole can no longer be parked in the “too hard basket”. The beginning of any technology that genuinely changes the world is mostly referred to as a phase, stigmatized to a specific odd group of the society, possibly classified as illegal by those that don’t understand it.
In the most recent years, the terms digital currency, Bitcoin, cryptocurrency are more widely used and understood. In 2021, digital currencies, like Bitcoin, Etherium and Dogecoin to name a few, are becoming more mainstream, especially for individuals that aspire to control their own assets with no banks or governments involved.A majority of people find understanding bitcoin challenging. This article will help you understand bitcoin and the future impact of bitcoin on society.
Ultimately, acceptance, adoption becomes inevitable. Take, for example, they saw computers to be for the smart nerds, internet dating for the loners, social media for the vein, and the list goes on. Bitcoin and cryptocurrency is here to stay.
In this article, we will attempt to give an extensive viewpoint towards Bitcoin Cryptocurrency and its meaning for the world today and the future.
What is Cryptocurrency and how does it work ?
What is cryptocurrency ?
Cryptocurrency (or “crypto”) is a digital currency that can be used to buy goods and services but uses an online ledger with strong cryptography to secure online transactions. . Much of the interest in cryptocurrencies is to trade for profit, with speculators at times driving prices skyward.
How does Cryptocurrency work ?
The technology used, which is an online ledger “Blockchain”, is a decentralized technology spread across many computers that manage and record transactions. Part of the appeal of this technology is its transparency and security. Because of Blockchain technology, decentralization is possible. Contracts and transactions are mathematically solved by computers and algorithms, contracts are stamped in a public ledger that can never be deleted or amended. Permanently!
Once information is in the Blockchain, it cannot be changed, edited, or manipulated. For example, if you are the rightful owner of a car or a house, you don’t need paperwork to prove you are the owner. The contract of your purchase is recorded in the Blockchain and is there to stay. When you initiate a transaction or a new contract to pass on ownership to another party, the last contract block is verified allowing the transaction or new contract to be fulfilled.
This whole process is carried out by computers around the world, solving algorithms and making a unanimous decision before any transaction is approved. No humans, no governments, no third party, no questions. The pure algorithm that doesn’t judge. Your race, age, occupation, name, or even the why is not a factor. What matters is, does this asset exist, does this belong to this person, answered yes? Approved. Transferred.
What is cryptocurrency in one statement ? How to explain bitcoin in one sentence
In simple words, when asked “what is cryptocurrency and how does it work ” – cryptocurrency simply is “Internet money” with not third party involved. Example, the government or the bank.
Why Use Cryptocurrency?
No country Borders
Bitcoin is the most mainstream digital money which has seen an enormous achievement. There are other hundreds if not thousands of digital currencies, all with a different purpose, the right term being all with a different “use case”. Bitcoin or any other cryptocurrency is not geographically bound, anyone, anywhere in the world can use it. Different use cases influence a user to select a coin or token used to suit their needs.
Easy to use
Any Cryptocurrency can be easily changed over into a different cryptocurrency and kept in client’s records at a lightning speed and minimum information is required. Proof of funds and proof of ownership are the two main inputs required for a transaction to be successful. These are in the form of a private key and a public key.
Privacy and cheaper
Cryptocurrency can also be traded secretly, and can be used as online money anyplace on the planet. If you are a merchant, your clients or customers subsequently don’t need to pay for any international money transfer fees. Location is not a factor. Using cryptocurrency to buy goods and services online or in person equates to the same transaction fees. Ultimately, cutting out banks results in a decrease in transaction fees.
Transparent and Safe
While we can’t say cryptocurrency is not 100% resistant to hacking, it’s definitely safe to say it is extremely hard, or extremely impossible for one to break the code. Anyone can hack the banking system, anyone can print more money, and the world will not notice. Just like we see in money heist the Netflix series.
Bitcoin will never ever exceed its total maximum supply of 23 million coins, also any other tokens or coins. We can find any newly minted tokens by founders at any time. Blockchain, the online ledger is accessible to everyone. Yes, that includes you and me! Imagine being able to see where and how every single dollar of taxpayers’ money is spent by the government or charities?
Click to take a look at Bitcoin’s blog article about safety here.
Ultimate Ownership. You are your own Bank !
Another cool fact is Bitcoin and other Cryptocurrency can be saved offline either in a “paper” wallet or on a removable stockpiling hard drive, which is another form of a wallet. This means you can detach your “money” from the internet, when not in use. This protects you from any type of hackers, any type of organisation from freezing your assets or confiscating your assets. You are your own bank, and you do whatever you want with your money!
Bitcoin – A Glimpse into the Future
There are many reasons the effect of Bitcoin is especially significant in 2021, and why the Cryptocurrency bull run of 2018 is not going anywhere soon. The market is bullish. Mass adaptation has played a major role. Below are a few reasons we are bullish on Bitcoin and cryptocurrency.
Many governments all throughout the world are carrying out on interventionist strategies which limit money transfers from different nations either by making the charges excessively high or by composing new rules and regulations. This dread of not having the option to send cash to loved ones easily is driving more individuals towards Bitcoin and Cryptocurrency. The most commonly used cryptocurrency being Bitcoin.
Authority Over Capital
Many sovereign monetary standards and their use outside of their nation of origin are being directed and limited to a degree, along these lines driving the interest for Bitcoin. For instance, the Chinese government as of late made it harder for individuals just as organizations to spend the country’s money abroad, consequently catching liquidity. Thus, choices, for example, Bitcoin have gained gigantic fame in China.
Better Acceptance today, more buyers are using Bitcoins than any time in recent memory, and that is because more large and reputable organizations now accept bitcoin as payment. Paypal and Tesla are two good examples. Businesses of any size, any location, can also accept bitcoin or cryptocurrency payments. Spending crypto online, or buying online using bitcoin is increasingly easily available.
Today, online customers and financial backers are using bitcoins consistently. Coinbase, a reputable crypto currency exchange platform, the first crypto currency company to be listed on a stock exchange is paving the way for bitcoin acceptance and mass adoption.
The Real-world Impact of Virtual Money
So, what is the real world impact of virtual currency ?
Would the real impact be cheaper goods and services? Easier access to information? Less paperwork? Less legal disputes? How will banks be affected when the world moves to each individual being their own bank? Would a country where you are born determine your future or access to worldwide transactions ?
While Cryptocurrency and its use is at an unsurpassed high, so are the misguided judgments about it. Most people usually ask “what is the purpose of Bitcoin”, with many viewing Bitcoin and cryptocurrency as complicated technology they will never understand.
The real world impact of bitcoin and cryptocurrency is inevitably dominating the world through cryptography and Blockchain technology. Ignoring it will eventually be impossible. Think of the days we avoided using computers, mobile phones, smart phones and apps, all of which we cannot live without today.