Since the dawn of trade, man has always sought to create a value system that gave value to goods exchanged so that we could trade value for value. Problems arose when different cultures started transcending internal trade and engaged in external trade. So the need for a system that worked on a universal scale was needed.
So they unanimously selected minerals of value to be the standard by which trade was conducted like silver and gold. And as time went by and banks were created, gold was stored in bank vaults and paper money was distributed to represent a corresponding value with the gold in the bank. That way people couldn’t just print out money.
The next step involves the evolution of money is cryptocurrency.
The Concept of “Cryptocurrency” was first described by Wei Dai on the “Cypherpunks” Mailing List in 1998. In 2009, Bitcoin was then published as a specification and proof concept in a cryptography mailing-list by one Satoshi Nakamoto, making Bitcoin the first true rendition of the Cryptocurrency concept.
SO WHAT IS BITCOIN?
Created by Satoshi Nakamoto, Bitcoin is a virtual currency that isn’t backed by any physical component as money is backed by gold or minerals. It is also a cryptocurrency which means that it is encrypted in such a way that prevents it from being copied. Every Bitcoin transaction is recorded using what is known as a lock Chain’. That information works like a ledger that is encoded on the Bitcoin itself.
This gives it transparency in that everyone on the network will have access to how each bitcoin has been transacted with.
It isn’t a stock, it is a currency just like the Dollar, Pound or Euro. The difference however is that it is not backed by any specific country. It is completely decentralized. It is completely frictionless, meaning you can store it on your computer, send it via text, email etc. Since there is no regulatory body for it, you can send 10,000BTC for the same cost as you would for 1BTC.
HOW CAN YOU GET BITCOIN?
There are basically two ways to get your hands on bitcoins. You can either do it by trading it or mining it.
Trading it involves you purchasing it value for value just as you would with money, goods and services. Basically trading it for a more traditional currency for its worth.
Bitcoin like gold or other orthodox minerals can be mined. But unlike the latter, you won’t go out breaking rocks and ore to mine bitcoin. Instead you will do it on a digital basis using powerful computer and special bitcoin mining software.
With Bitcoin, miners attempt to solve math problems in exchange for bitcoin. Which works as both a smart method but also as an incentive to get more people mining the cryptocurrency.
The math problems complexity is dependent on the number of miners present in the network, the more miners there are, the less bitcoin there is to be found. So as miner numbers increase, the problems are made more complex and vice versa in the event of the antitheses. So in a nutshell, when a miner solves math problems using these powerful computers and mining software, they get bitcoin. Sounds simple but it is in fact a very demanding process.
HOW MUCH IS BITCOIN WORTH?
Since Bitcoin is a virtual currency not at all centralized the question is does it have real value? Who then determines that value? These are some of the questions that arise from the very nature of bitcoin.
like the more traditional forms of money, the value of bitcoin is determined through market forces of supply and demand in liquid markets that operate non-stop. Check out Xcoins.com if you want to buy bitcoins fast. The major difference between Bitcoin and the non-digital currencies is that trading with bitcoin never stops, there is no closing price for it.
As of 2009 Bitcoin was just $0.39 and throughout 2010, it never exceeded $1. But as time went by and more people became aware of the potential efficiency that bitcoin had over the traditional currency, its demand began to grow. Before 2017 one could buy a single bitcoin for a $1000 or less.
But as of today, one bitcoin is worth 3,800 to 4,000 dollars depending on the market. There are only 21 million Bitcoins in existent, the number that has already been mined is hard to keep up with because literally thousands are mined daily. So based on today’s value of bitcoin the entire market is worth roughly around $84 billion to $90 billion but is subject to drastic changes upwards or downwards depending on the market. Although the greater likelihood is upward according to the experts.
In comparison to the old non-digital currencies, Bitcoin is rather small. But the potential it has is too grand to be ignored. The world is currently in a money war because Crypto Revolt has the potential to be the next step in the evolution of money with bitcoin at the helm leading the charge.