We all have been hearing about the latest fad, Bitcoins. It is the most successful cryptocurrency. Originated in the year 2008, it has come a long way and have started being accepted as a currency for exchanging values and as a value for store. However, people are still sceptic about its future and are afraid to accept it as a full-time currency. Let’s overview, what’s going around the world about this new mined currency and what future holds for blockchain technology.
Origin and Future of cryptocurrency
Bitcoins is not only a commodity in marketplace. Rather it’s a new concept which when developed can helps us overcome the restrictions of current currency and can provide the world a method of exchange which do not cost you anything.
Cryptocurrency is not new however what make Bitcoins unique is that they have a limited supply, that is they cannot be generated for more than 21 million units. Also, they can be further sub divided into smaller units as small as one thousandth of a bitcoin.
Incepted in the year 2008, bitcoins have seen a hike in its value during 2014 and there is a gradual downward slope ever since then in its value. It has been mainly popularized by its early adopters who know what it is and what it does.
If we talk of masses, people are still not very sure about it. It comes with its own risk as it is not backed by any financial institutions. Things like customer issues, chargebacks, disputes etc. can still not be entertained for this currency as it lacks the basic framework.
As quoted by RBI deputy governor, R. Gandhi, in his speech in a conference in Mumbai, “It poses potential financial, operational, legal, customer protection and security related risks.”
Until this currency can gain customer confidence and resolve anonymity associated with it, it is still a dream.
What goes for Bitcoins
What have popularized Bitcoins is it is not regulated by any centralized authority, so makes it easy to transact for many online things. It attracts many illegal transactions as in its case the identity of the person making transaction is never revealed.
There is a whole genius concept behind Bitcoins, which is being recognized by people around the world. This is the reason why some countries have even legalized its use and have recognized it as a medium of exchange. This concept has a potential to be developed with a framework of protocols and authorities to control it to take shape of real world currency.
What goes against Bitcoins
It being an electronic wallet, is always at the risk of hacker. But so, do the money in your physical wallets. The pick pocketers can always steal it.
It has a limit, so if demand presses over supply, it can be replaced by other crypto currencies widely available in the market, which are still struggling to make their place in the area which is ruled by Bitcoins.
Acceptance of the currency is still far off. We cannot see its future when we consider months or years except for a good investment as a market place commodity. To see its future, we must consider decades.