We have seen the stock markets crashing, national exchange fluctuating, governments getting tapped up with debts, and inflation in the price of the goods but where ECONOMY is said to be the driving force behind every nation. Every Citizen seeks for regulation of a system, which is often not regulated.
Then came the “CRYPTOCURRENCY” which is parallel to the path of that a BITCOIN, which promised the citizens a new and ethical way of spending money.
The BITCOIN is a digital payment system invented by a group of programmers, under the name “Santoshi Nakamoto”, which was hereby released as an open source software in 2009 and is a peer-to-peer network with which verified transactions take place directly without any intermediary and thus recorded in a public distributed ledger called a block chain.
How does it work ?
The US National Security Agency designed a set of cryptographic functions using SHA-256 to operate on Grayson. It was designed to recognize two basic functions :-
1. Block Chains – It is the source code that displays the public ledger of the entire Bitcoin network which includes all confirmed transactions and maintains a net worth of currency rate. This helps i keeping track of the business transactions and assign a value to each nation’s currency rate. This thus lets wallets to access the Bitcoin database and use it to send the information to banks.
2. Private Keys – Used to store confidential piece of data and proves the account holder, that who they are to claim to be.
Is Bitcoin an invisible currency ?
Till date, governments do not regulate or insure Bitcoins currencies held by wallet banks. The difference between a bank and a bitcoin wallet program is government guidelines and protections. The methodology is that, once when a user installs and sets up a new wallet, an address which should be different for everyone is created which is similar to the e-mail address. So there are different methods of storing bitcoins in the form of payments or, either converting. Investing and earning bitcoins are similar, whereas others simply purchase them.
Is Bitcoin a Boon or Bane ?
Currency has promised that it would be safe amidst stock market crisis, offers security, but for the call of making people richer? It may have promised an impossible arena where concerns about validity or it being a mainstream tool are often expressed. But bitcoins itself is a strong diverting factor and people have a lot of issue with understanding the basic principles or mining principles behind cryptocurrency.
Emerging Economies ?
The new coinage systems of fast developing currency has hurt bitcoin, because the consumers are turning away from it , seeking for a much easier solution thus preventing it from truly setting the stage for a new empire.
Bitcoin – A Friend or Foe ?
Sometimes religion and culture also play a huge role in finance, i.e. , take the example of bible that Christians read. Using the belief of :The anti-Christ will create one-word currency” it, they have determined not to conduct business using this currency.
Moral – It is a tremendous Technology, failed or success attempts depends on how people take on their tasks. They don’t understand currency, but have found home within the new cryptocurrencies and destroyed the original intentions through decentralization. It may or may not be living, but the idealism behind it is enticing.