Bitcoin, The ghost currency ; It has no shape , no form and no visibility but yet ; it’s value is maybe higher than that of gold.
In 2008, People saw the weird concept of bitcoin which is supposedly proposed by Satoshi Nakamoto. It is like a virtual currency which exists in a virtual wallet. So what makes bitcoin different for our normal system? Well normally when we buy something online, a bank is involved in the money transaction from the buyer to the seller. But bitcoin has no middlemen, money is directly transferred to the seller by the buyer.
How it all works :
Let’s take the example of a buyer and a seller. They both own a virtual wallet #1 and #2 respectively. Now if a buyer wants to buy something that is worth $50, He/she will transfer bitcoins that are worth $50 into the seller’s account. Now here’s the fun part; This kind of transaction never reveals the buyer’s or the seller’s name. It only reveals their ID Numbers (e.g 2348650##) which is their identification. It may sound something ingenious but it has it’s cons as well. Because no banks are involved in these kinds of money transfer processes , The government has no information regarding how the money is used.
Where bitcoin is used ?
Harsh the fact is, but bitcoin is mostly used in buying illegal weapons or drugs and is even used to hire a hitman! It is the currency of the “Dark web”, where all sorts of illegal dealings are handled. But , the world is slowly coming to it’s good side as well. London has recently started world’s first “Bitcoin Bank” where you can buy and sell bitcoins. Many websites are now using bitcoin as their currency e.g, Etsy. Even Cafes and Restaurants are availing bitcoin. Now in Mcdonalds you can eat anything by exchanging bitcoins.
Advantages of bitcoin :
- With bitcoin it is possible to send money anywhere and at any time.
- Crossing borders or waiting for bank holidays to end will not be an issue anymore.
- Since no middle person is involved ; you are in control of your own money.
- Buyers cannot charge extra money without notifying the seller first.
- Bitcoin transactions can be finalized without involving one’s personal information, Due to this very reason bitcoin saves people from identity theft.
- Bitcoin can be backed up to ensure the safety of your virtual wallet.
- Because of an internal chain system, whenever a transaction is finalized it is visible to everybody who wants to see them.
- Bitcoin protocol cannot be controlled by anybody. This is why it is virtually safe.
- Your public ID is visible, but no personal information is given out and is kept a secret from everybody else.
- There are no fees or very less fees in bitcoin transactions. However if a transaction has higher fees, it gets higher priority in the bitcoin network and the work is done faster.
But the catch is that we cannot determine the future of this ingenious invention. Only time will tell wether it is of use to people or it is the future of the dark web.