Bitcoin is first released in the year 2009 by a programmer using the pseudonym Satoshi Nakamoto. It is a protocol that is electronically created and stored. It uses cryptography for security, which is extremely difficult to counterfeit. It is an electronic payment method. These are mined using computing power in a distributed network. Being the oldest and the most popular cryptocurrency, Bitcoin price has reached a higher level from the initial price. More than thousands of merchants accept it as a payment service. Access to bitcoin is very convenient. The price increased astronomically at the height of dollar 20,000 and came out as a promising currency for future use.
The main characteristics of bitcoin
- A bank or government does not own decentralized means bitcoin.
- Peer to peer is related to networks where each computer can act as a server for others, allowing shared access to data and peripherals; it does not need a central server.
- Easy to use
- Unregulated, bitcoin is not controlled by regulations or laws; it is an unregulated free-market economy.
- Anonymous yet transparent, its transactionsare transparent. That is, anyone can see the balance and transaction of any bitcoin address. The data of bitcoin transactions are stored openly and enduringly on the network.
- Fast but irreversible transfers
Social and Economic Analysis of bitcoin
- About 21 million bitcoins in existence today.
- Bitcoins are too small to affect the federal government to conduct any monetary policy.
- Over 88,000 merchants are currently using bitcoins.
- Driving force- It is indistinguishable in the knowledge that Bitcoin components, such as addresses, private and public keys, and transactions. So, we have to research on bitcoin privacy before using it.
- Level of awareness and usage– Common people do not even know what Bitcoin is, it lacks awareness among people.
- More merchants adopting payment technology can increase adoption among consumers.
Bitcoin also has its pros and cons; these may depend on awareness, transparency, Decentralized, or many more.
Advantages of Bitcoin
Payment through bitcoins has the ultimate freedom, where the transactions can be tracked and identified.
Fewer risks for merchants:
Bitcoin transactions can be secured, irreversible, and it does not contain any personal details of users. It is the customer’s sensitive, which protects merchants from losses caused by fraud or fraudulent chargebacks.
Central Government cannot take it away:
Governments cannot take bitcoins as they are decentralized, and no one can control it. The government can ban it, but still, our bitcoin will have some value.