From Centuries we humans are changing the trust model for value or money that has been represented in the form of physical or digital currency. In 2007, Satoshi Nakamoto, a pseudo-anonymous developer, started to write the code for bitcoin and registered a domain name bitcoin.org. Bitcoin faucet has emerged as a cryptocurrency that is an innovative and abstract form of money.
Bitcoin is a type of cryptocurrency that facilitates peer-to-peer payment exchange without any involvement of a third party or centralized authority.
How does It Function?
One who owns a bitcoin is provided with a specific bitcoin address recorded to the ledger.
The real pony behind this revolutionary idea is an underlying technology called Blockchains. For the first time in history, people can trust each other in transacting peer to peer. The Ethereum Blockchain was invented by a Canadian named Vitalik Buterin.
Basically, blockchains; Block + Chains is a database consists of small units that store information of each and every transaction, including uniquely identifying code, date and time and buyers, seller’s records. There is high tech, trustworthy computer encryption in it. Thousands of blockchains are discovered now, and people have started owning them. They are beyond the control of anyone.
Investing in Bitcoin
People are legit investing in bitcoins. This lucrative trading of bitcoins has become a business, and some people hold the cryptocurrency in the long terms. Others sell it to consumers for their profit.
Consumers can also invest in bitcoins only if they are aware and fully interested. While they subside the risk slightly, they still carry risk like charging high fees than the index funds. The big concern is for people who don’t choose well. So, one can only look for investing in bitcoin only from a real long-term perspective.
