Why Bitcoin is needed and what are the prospects for the new digital gold

Beginning of Bitcoin

Bitcoin was introduced to the world in 2009, but the world was not particularly happy with the innovation. At the beginning of its journey, Bitcoin was worth less than 1 cent (the exact cost of 1 BTC was $ 0,000763924). A significant increase in the value of Bitcoin showed only in 2010, then the price rose to $ 0.08 per 1 coin. Oh, if then someone could have predicted an increase in the rate of digital gold to $ 20, then he would immediately start mining.

 

 

Unfortunately, only a select few enthusiasts were involved in mining and trading on exchanges. And only years later, they paid attention to the new currency. They really started talking about the new currency when the coin rate rose above $ 15 and continued to grow.

 

Money

Let's look back and try to remember how the “Money” began. In the beginning there was no money at all. Instead of money, there was a barter system that helped exchange goods and services. And much later money appeared, which was a kind of measure. Equivalent to the value of a product or service.

 

 

The first money was made of metal, it is they who are the progenitor of modern money, it was convenient enough to carry with them, coins had different denominations, and they could be hidden from ill-wishers.

Over time, iron money replaced paper money. Still later, paper money was diluted with the digital equivalent of paper money created by banks.

 

 

And finally, in the 21st century, we are on the verge of a new evolution of money into a fully electronic form of “Cryptocurrency”. And the most famous representative of electronic money Bitcoin.

 

Bitcoin benefits and why you need it

Of course, Bitcoin, like any other cryptocurrency, has its advantages and disadvantages.

 

 

Let's start with the advantages:

• The convenience of use. Today, there are a huge number of services, in addition to the wallet of Bitcoin itself, which allow you to send money to the desired wallet in a matter of seconds. And in a matter of minutes, the money will go to the recipient's account. Even if it is on the other side of the globe. And that’s all with a minimum commission.
• Security. This is perhaps one of the most significant reasons to use the new digital currency. No one can “hack” your wallet and transfer your money from there. And unlike paper money, cryptocurrency cannot be pulled out of your pocket or bag. Even if a blockchain network crashes or attempts to hack. It is immediately corrected according to the stored network data, which are on millions of computers around the world.

• Impossible to fake. A total of 21 Bitcoin coins are reserved on the network. This amount will not decrease or increase. This means that we are not talking about any counterfeit money. Bitcoin cannot be counterfeited.
• Decentralization. Imagine that you put money in a bank, and suddenly, the next day you will find out that the bank is bankrupt and you have no more money. It's a shame right? So this will not happen with Bitcoin. Bitcoin is independent of a specific bank, server, computer or person. In order for Bitcoin to disappear, it is necessary to completely destroy all the computers in the world. And you yourself understand this is impossible, and even if it happens in some miraculous way, we will again return to the era of barter and iron money.
• And the most relevant advantage for today is the growth of the BTC / USD rate. 10 years ago, when Bitcoin was worth less than 1 cent, no one could have predicted the growth it had at the end of 2017. And we can only guess what the rate will be in 10 years. Perhaps an investment of $ 100 in Bitcoin today will result in $ 1 in 000 years.

Now about the shortcomings

 

• There is no official state support. Trends in the development of cryptocurrencies and their discussion at the state level says that this drawback will soon disappear. But while it is still there and while Bitcoin cannot be paid in stores as usual local currency.
• Accounts are not personalized. This is probably the biggest drawback, which will be very difficult to fix. The fact is that tracking the movement of funds and the accounts themselves in the Blockchain network is very difficult. In addition, even if you trace the transfer, it is still unknown who owns the account and who sent the money. This is quite successfully used by "not very good people." Also, the lack of communication of accounts with specific people does not allow to include the cryptocurrency turnover in the state financial machine. It is impossible to understand who received how much and how much should pay taxes. Of course, over time, personalization will be, it is inevitable. But how long it will take is still unclear.

• Volatility. Now, despite the long existence of Bitcoin, it is still in its infancy. Not all people know about its existence, and even those who know are not always interested in it. Periodic jumps in popularity or some, not very happy news from the crypto world, have a significant impact on the Bitcoin exchange rate. And this happens quite privately. Because of this, large investors are still eyeing the new digital gold and are not in a hurry to take risks. After all, it is impossible to clearly predict the growth or fall of a coin.

 

Bitcoin's future prospects

Due to the fact that the Bitcoin currency became the first of its kind, it has every chance of becoming the main one, over all other cryptocurrencies. Already, on all cryptocurrency exchanges, all currencies are traded in conjunction with Bitcoin. It is likely that Bitcoin is the new USD.

 

 

The logical continuation of the development of Bitcoin looks like this. Cryptocurrency accounts will be personalized. Just as banks now issue credit cards, so will cryptocurrency bills. As soon as cryptocurrency accounts are personalized, all shadow operations with cryptocurrency are immediately eliminated.

 

 

Then, all countries of the world, sooner or later, recognize Bitcoin as a currency. And they will develop rules governing the crypto market. After Bitcoin is recognized as a full-fledged currency, its exchange rate will grow rapidly. This will be connected with huge demand and insufficient amount of coins available for sale.

 

 

In the future, after the Bitcoin exchange rate is established within certain limits, the Bitcoin currency will begin to gradually replace paper money. Let's hope that we ourselves will be able to see a world in which there will be only digital currency. And, if this happens, then 21 million coins Bitcoin will be worth all the money in the world.