Bitcoin has been the
trending topic in the financial market. The value of the Bitcoin has been
increasing day by day, Japanese claim that this is legal currency and where as
other countries believe it is as a Fraud business.Before analysing, let me
enlighten you with the topic.
Bitcoin is a virtual
currency or cryptocurrency that works on a peer-to-peer basis which was
invented in 2009 by SATOSHI NAKAMOTOand
the identity is anonymous till date. There are many other coins invented after
bitcoin like Litecoin, Peercoin, Feather coin and Ethereumetc .These are called
as Altcoins or Alternative coins.
Bitcoins has no
central authority controlling it. Like currency notes, it can be sent from one
person to another in the form of transaction and allows to save money in the
Bitcoin Wallet. But the whole process continues without the permission of
central bank or the government. This system completely depends on cryptography
to control the creation of the currency. While no authority controls the
generation of the coins or tracks them, the system itself is designed in such a
way that the network maintains a complete data of transaction history of each
user record of every transaction as well as tracking issuance of the currency.
Bitcoin actually works on
blockchain. Blockchain is a ledger ,which stores all the transactions of
bitcoin. In the
blockchain, a copy of the ledger file is shared between thousands of
participants globally, also called miners. Even you can become a miner by
simply downloading the open source bitcoin software. New bitcoin transactions
are added in the blockchain by a consensus of a majority of the miners. People
do mining because they receive new created bitcoins in return for their
efforts. Once a transaction is entered in the blockchain, it can never be
erased or modified.
Many large companies are accepting bitcoins as a legitimate source of
funds. They allow their online products to be bought with bitcoins. With the
extreme facilitation of transfer and earning of bitcoins, it would be a mistake
not to accept these new-found online coins as cash. With a fluctuating value,
the funds can either help or hurt the company. Companies like Wikipedia , Microsoft ,Wordpress.com and many more are accepting this
digital currency as a payment.
Recently, bitcoin future began trading on 10th of Dec as the increasingly popular virtual currency
made its debut on a major US exchange.Another large futures
exchange, the Chicago Mercantile Exchange, will start trading its own futures
on 18 December but will use a composite of several bitcoin prices across a
handful of exchanges.
A debate is raging on
the merits of such currencies. Some say they serve merely to facilitate money
laundering and illicit, anonymous payments. Others say they can be helpful
methods of payment, such as in crisis situations where national currencies have
collapsed. By Moqtar Ali
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