With Bitcoin’s surging popularity and adoption in the international market, you would be curious to know everything about Bitcoin, right? If you feel you are lagging behind the rest of the world on the subject of Bitcoin, you do not need to worry. Because we are here to dispel all your worries and have got you covered!
Not only has Bitcoin penetrated deeply into the financial world, but also into other diverse sectors, including culture, commerce, and popular art. Undoubtedly, Bitcoin and other cryptocurrencies have been the talk of the town for the past couple of years.
Here is everything you should know about Bitcoin.
What is Bitcoin?
Similar to other cryptocurrencies, Bitcoin is a digital currency. Unlike fiat currency, Bitcoin uses a decentralised system to operate. Without involving a third party or intermediary, such as a bank or centralised authority, Bitcoin can be used for making online transactions. Bitcoins exist independently as digital units and are uncontrolled by a regulatory body. Therefore, without being accountable to a middleman, Bitcoin can be used to buy, sell, and exchange nearly all goods and services. From a sizzling pizza slice to a luxury automobile, everything can be purchased with Bitcoin from anywhere in the world.
To sum up, Bitcoin is a form of virtual currency that (i) exists independently of any financial institution or centralised authority, (ii) can be transacted directly between two entities in a peer-to-peer fashion without relying on a trusted party, and (iii) follows a certain set of transaction rules that cannot be altered.
A Brief Backstory of Bitcoin
Being the first form of digital currency, Bitcoin was invented by Satoshi Nakamoto. Bitcoin was publicly launched in the market in 2009. A digital currency like Bitcoin was primarily created as a way to reduce excessive circulation of money in the market, especially during the financial crisis. Also, the goal was to invent a new electronic cash system that did not have to rely on a central authority. In addition to that, Bitcoin was founded to remedy the problem of double spending, which enabled scarcity in the digital realm for the first time.
Fun fact: A programmer named Laszlo Hanyecz was the first person to make a commercial crypto-based transaction. He purchased two Papa John’s pizzas using 10,000 Bitcoins.
How does Bitcoin work?
Bitcoin has been a major player in blockchain and is viewed as one of the hottest forms of cryptocurrency. Bitcoin runs on a publicly distributed digital leger, also known as a Blockchain. The entire Bitcoin network basically relies on a gigantic public ledger – the block chain. It keeps track of all the confirmed transactions, including information about the total value, date, time, buyer, seller, and a unique ID for each transaction. Every step associated with each transaction is encrypted. All transactional entries are recorded chronologically in the form of blocks. These blocks ultimately amalgamate into a digital chain called the blockchain.
As blockchains are decentralised in nature, no regulatory body can control them. A blockchain is not owned by anyone, but whoever has a link can contribute to it. With each contribution made to the blockchain, your copy gets updated as well.
Using blockchain technology adds multiple layers of security to transactions made in Bitcoin. Before it is added to the blockchain, each transactional block is required to be verified by Bitcoin holders. Not only that, the identification codes for wallets and transactions must be fully encrypted.
What can you purchase with Bitcoin?
Since cryptocurrency has taken the entire world by storm, it has embedded deeply into every industry. From movie tickets to automobiles, you can purchase nearly anything with Bitcoin in the modern age. With Bitcoin owners reaching up to 2.3 million in number, an overwhelming number of cars are sold annually with Bitcoin in the UK.
Speaking of purchasing cars with Bitcoin, AutoCoinCars allows its customers to seamlessly buy their favourite luxury automobile using Bitcoin or any other cryptocurrency. AutoCoinCars is one of the leading-edge car dealership platforms in the U.K. Not only have AutoCoinCars partnered with over 500 luxury car brands, but they also offer an incredible opportunity to pay in nearly all popular forms of cryptocurrency. Imagine paying in your desired crypto for your favourite car! Sounds like a dream, right? However, it is true. You can find thousands of exotic and premium high-end vehicles auctioned on the website to choose from.
AutoCoinCar’s exclusive range of luxury car brands include Porsche, Rolls Royce, Range Rover, Ferrari, BMW, Audi, Mercedes, Lamborghini etc. All of them can be bought with Bitcoin.
What is the future of Bitcoin?
Bitcoin has been a household name in the digital realm since the time of its inception. Of more than 19,000 cryptocurrencies, Bitcoin has been officially recognised as a standard payment method. Nearly all businesses have shifted towards accepting Bitcoin and many other cryptocurrencies in the form of payment. Taking a look at the figures from the last couple of years suggest that the market has undergone a series of fluctuations in the value of Bitcoin. However, Bitcoin has managed to remain stabilised all these years. This way, the future of Bitcoin looks promising. The value of Bitcoin is expected to reach as high as $23,448.30 in the coming years.
