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Bitcoin is a new digital currency which was introduced in the year 2009 by an unknown person using the alias name Satoshi Nakamoto. Bitcoin is a consensus network that enables a new payment system by completely digital money. It is the first decentralized peer-to-peer payment network which is powered by its users with no central controlling authority or middlemen. For user perspective, Bitcoin is pretty much like cash for the Internet. There is no transaction fees and no need to share your real name. More merchants are beginning to accept them; you can buy web hosting services, pizza or even manicures etc.
Bitcoin.org the official website was registered on 18th August 2008 and in November that year, Satoshi Nakamoto posted a link to a Cryptography mailing list with a paper authored by Satoshi Nakamoto titled Bitcoin: A Peer-to-Peer Electronic Cash System. The paper was stating detailed methods for generating network using a peer-to-peer network which was described as “a system for electronic transactions without relying on trust”.
The bitcoin had come into existence in January 2009 with the release of its first Open Source Bitcoin client and the issuance of the first bitcoin, with Satoshi Nakamoto mining the first block of bitcoins ever.
According to Satoshi Nakamoto Electronic cash transfer systems is very hassling and totally depends on banking systems or a middleman which creates some boundaries. Sometimes, we need to transfer money to a needy person who is in an emergency, but we are rooted by the same channel and, if the channel doesn’t work, then we will not be able to help that person. Sometimes, we purchase something on the way while we are in hurry but we waste our time to make the payment because we pay either by cash or some other mode which takes time and more effort. These were few reasons why Bitcoin currency came into existence.
Advantages of using BitCoin:
- It helps us to transfer the amount very fast.
- It doesn’t need any kindly of details to verify the transaction.
- It removes the middle man and the banking system.
- It doesn’t need our personal identity.
- You need not pay any taxes for purchases made via Bitcoin.
- No time boundation is there to use it. Use it according to your own time schedule.
- There is no fear of robbery or theft of your money.
Disadvantages of using BitCoin:
- No buyer Protection.
- It doesn’t get the government’s approval as a legal money.
- It attracts criminals to make their transactions without sharing their personal identity.
- It is not traceable, though people can buy and sell illegal items easily.
- If you lost your bitcoin there is no mechanism to recover them.
- A very high rate of fluctuations in its valuation.
- Not acceptable everywhere.
- It is totally based on using digital platform for transactions.
- It has a boundation called networking.
- Risk of unknown Technical faults.
Bitcoin is going to gain popularity in the near future and it will be a highly trading currency in the world.
We are living in a very busy and fast life where we always look for better and fast options for making our lifestyle easy where Bitcoin can become our financial partner but there are also some disadvantages of it.
As we all know that it is not a legal tender currency, so there is no tracking and buyer protection which makes it very risky. It has a high risk of losing your money because of the no return policy in any faulty transaction.
My personal thinking is that we should not use it until unless the government rules out the strict operational policy of BitCoin along with buyer protection and legal tender policy.
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