Since the inception of bitcoin in the year 2009, the currency developed by Satoshi Nakamoto seems to have taken a great traffic of transactions and payments towards it. Fuad Ahmed for his readers has collected some basic information regarding the new cryptocurrency that is being circulated in the market. He explains that Bitcoin is a brand of digital currency which is not held by any bank and is only used electronically. Mr. Ahmed emphasizes that digital currency is the new age currency which aims at revolutionizing the way money is being used. It’s created using mathematical algorithms is just another form of currency
This form of money does not have a physical entity nor it’s a currency that can be printed. Although while making some transactions and payments, it can be used as a regular currency, while fuad ahmed assures his readers that certain characteristics make it different from the common currency is the fact that its decentralized and is not held by any bank or regulated by the state. Since the currency is developed on a specific algorithmic code, it’s easily available to everyone who desires to look into the authenticity of the system. Additionally, it’s totally reliant on the internet, therefore it is conveniently within the reach of all those who want to buy or use it.
Application of bitcoin. How it works.
Easy to Use.
The use of bitcoin where is super easy, there are also many benefits it brings with it. The transactions are faster with bitcoin as they are not regulated by any bank. A bank takes about 3-4 days to process any cheque, while bitcoin moves much faster than this. When it comes to the transaction fee, its lower with bitcoin than any money that it processed by banks. A bank keeps its charges for providing services to its clients whereas with bitcoin a user does not have to care about paying surplus charges over the basic cost. This makes the user save a good amount of money.
Secure and safe system.
The information of bitcoin transactions is all saved in a system called blockchain. This blockchain technology is responsible for saving all the data of transactions and transfers in it. This system is built with special kind of programming in an encrypted language that minimizes the chances of data getting hacked or doctored. The whole network of bitcoin’s fund transfer and transactions work on Blockchain technology, therefore its the most secure and reliable kind of currency these days.
Bitcoins guarantee a safe system where your data remains resistant to theft and stealth. It’s a common occurrence that credit cards use all the critical data of the users which can lead to the violation of personal information of an individual and can also be used against him. Bitcoin on the other hand neither uses any personal information nor reveals it.
A Verified System.
The system of bitcoin works in a way that involves both public and private verification. Whenever someone uses bitcoin he makes use of the public and private keys together and applies mathematical algorithms to them. These algorithms establish a system that works as a certificate to verify the authenticity of transfer from one place to another, this system also ensures the credibility of the unit of bitcoin and assure the user that his transactions are free from all kinds of fraud.
Copes with Inflation.
The demand and supply rule dictates the law of inflation. Whenever a state’s economy endures inflation, the cause happens to be the overprinting of currency notes than was required. It’s a natural phenomenon, the prices of commodity items automatically increase when the liquidity of currency is high but the buyers in the market are not in an equal number. Bitcoin, on the other hand, is immune to such phenomenon. Since the currency is not present in a physical form, there is no fear of it getting printed in a higher amount that is demanded by the consumers. There is a fixed number of bitcoins to ever be created which is 21 billion. So the prices of bitcoins will fluctuate according to its demand but it is not going to cause any inflation in the markets.
Bitcoin- An Epitome of a new age.
As Fuad Ahmed has established in the first part of the article that the main idea of bitcoin was of a currency that works as a means of payment but, is completely electronic in nature.
How to Acquire this currency.
Through an Exchange
The bitcoins can be purchased through a bitcoin exchange that is housed in several financial markets. The largest exchange to buy bitcoin from is Mt. Gox.
Transfer of funds.
The transfer of bitcoin is really simple compared to other transactions. Units of bitcoin can easily be transferred from one computer to another or through a mobile application. It’s synonymous to transferring cash using an ATM that is electronically.
The bitcoins can be saved in a digital wallet which can either be present in a cloud or a computer system. The wallet works as a virtual account for the bitcoin wallet holder from where he can easily send, receive, save or pay for goods through this money.
Bitcoin, an invention of Satoshi Nokamoto is definitely going to revolutionize the world and change the way it has been operating. It’s called the currency of new age for its aptness in the current world which is becoming more and more volatile and unsafe for matters as important as money