Understanding Bitcoin in 2020: What You Need to Know

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Bitcoin
Bitcoin

Bitcoin, cryptocurrency, block explorer, and blockchain technology. If you don’t know what these words mean, don’t panic. You can learn the latest bitcoin news now.  People who use cryptocurrencies are working hard to make sure cryptos are used globally. If you are seeking another currency apart from dollars and pounds, you should think of digital currency.

Bitcoin is the largest cryptocurrency in the world, and some believe it is the future of currency. For most people, Bitcoin is challenging to understand, and that’s why they are still using cash.

What is Bitcoin?

If you didn’t know Bitcoin, well, in this article, you will know more about the most popular cryptocurrency. It is a digital currency that is not governed by a central bank. It uses blockchain technology. The Federal Reserve will oversee the United States of America’s money, but no one controls Bitcoin.

It is worth revisiting why Bitcoin was invented. In 2008, it was believed that an individual using the alias Nakamoto created a plan that involved cryptocurrency. He wanted a global economy where individuals could transact electronically without PayPal or banks. This plan was written down during the financial crisis of 2008.

Satoshi said that the use of cryptocurrencies would eliminate the fees charged after a transaction. Operating a bank is expensive. You will have to cater to utilities, security, and other costs paid by the users. The vision was to make each individual a bank and to eliminate intermediaries.

Bitcoin was created to solve the banking problem. At the start, 30,000 lines of code were needed to make Bitcoin a reality. Blockchain technology is what makes people use Bitcoin in their transactions. It is a public digital platform that makes sure it is decentralized.

Regulating Bitcoin Price

If you don’t know what Bitcoin is, you are probably thinking, how does it become worth so much money? It is an excellent question. But you may ask, why is it the same value as money or gold? Bitcoin has increased its value because it functions the same way as money. The significant difference is that you won’t be putting trust in a bank; you will be trusting a system. As more people and businesses put trust in Bitcoin, the value will keep on increasing.

Bitcoin

Of course, there are other factors to consider. For starters, you should think about halving. Remember, Blockchain Technology controls Bitcoin, and no one can reverse payment once it’s approved. In 2009, Bitcoin was at 50 BTC after launch then after four years; it was halved by 50 percent to 25 BTC. In 2020, it was at 6.25 BTC. It is anybody’s guess if it will be used worldwide by everyone. Bitcoin will continue to be pushed. If you didn’t know what Bitcoin is, now you know.

Using Bitcoin in Financial Transactions

Bitcoin has started to become consumer-friendly. Some businesses have begun to accept Bitcoin as a form of payment. If you can, you can use it in your industry.

Even though Mastercard, Visa, and dollars will still be preferred when it comes to payment worldwide, several retailers have begun to accept Bitcoin and other cryptocurrencies. In the United States of America, there are valuable brands that will let you buy goods and services using Bitcoin. Microsoft, owned by Bill Gates, allows consumers to make purchases using Bitcoin on the Xbox Store.

Did you know that Bill Gates, the founder of Microsoft, has claimed before that Bitcoin is gaining momentum and is excellent than a common currency? Well, now, you know. In the meantime, certain brands have had significant revenues. Also, there are retail stores in Europe that are accepting Bitcoin from consumers when they buy products. But the exciting thing is fintech startups have adopted Bitcoin and have incorporated it in prepaid debit cards. How does it work? Consumer A will visit a supermarket to buy milk at price “X.” At the point of sale, Bitcoin will be converted into cash to complete the transaction.

Some platforms make Bitcoin accessible to consumers. If you seek to get Bitcoin, you can reach out to people who are transacting with Bitcoin daily. But despite the growth of Bitcoin globally, it’s still yet to be fully embraced by everyone. Governments are seeking ways to stop it from being adopted. Whether it will be successful in the long-term, it’s anybody’s guess. We can just speculate and watch it as it continues to be pushed by the people who believe in it.

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