While the boost may have brighten a little bit, 2015 was still a pretty engaged year for Bitcoin digital currency. Yet at the same time there are number of individuals around the world who don’t know about this term. Various inquiries will emerge when they read about ‘Bitcoin’ such as what is it? How it functions? What are the favorable circumstances? And much more. So let me clear first all the fundamental stuff about this digital currency.
Bitcoin is nothing but a currency invented in 2009 by Satoshi Nakamoto. It enables new payment system and peer-to-peer payment network empowered by its users without any middleman or any central authority. There is no need to give your real name as well as any transaction fees. It arrived from the concept called “cryptocurrency”.
- International payments are easier and smoother than ever before
- Send and receive Bitcoin anywhere, anytime
- No need to worry about bank holidays or any other limitations
- It is best for the security as it does not incorporate any personal information
- It will be benefited for the merchants as it deliver fewer risks
- Bitcoin users can also protect their money with backup and encryption
- No individual/organization can control the Bitcoin protocol as its cryptographically secure
- Payments can be done without any dependency on third party
- It is designed to avoid financial crimes
As Bitcoin is constant in its attempts to change the whole world, several companies are utilizing crypto-currency within the mobile industry as well. mobile developers are crafting all sort of applications which will best suite to the community of Bitcoin. Every week fresh mobile applications are springing up to integrate newer wallet, payment systems and even mobile games. Bitcoin Wallet is the first and most secure Bitcoin app. You can pay by performing quick scanning of QR-code. Some of the applications are available on iOS as well as Android devices. These are the best examples of Bitcoin Applications:
- FlapPig (iPhone/Android)
- Lawnmower (iPhone/Android)
- Bitcoin Fighter (Android)
- Gliph (iPhone/Android)
- Fold (iPhone)
- Fitcoin (iPhone)
- GetGems (iPhone)
- Bitcoin Billionaire (iPhone/Android)
- Bitcoin Checkout by BitPay (iPhone/Android)
Bitcoin transactions are confirmed by the Bitcoin Miners. Now, you need to know how this Bitcoin Miners perform its functions. Anyone can become a Bitcoin miner by running software with the best mining hardware. The mining software listens for transactions which are broadcasting through the peer-to-peer network and by performing proper assignments affirm the transactions. There are number of Bitcoin Mining software available in the market such as CGminer, BFGminer and many more.
You can also set up a Bitcoin Wallet. Bitcoins are sent to you by using unique address that only belongs to you. You can also buy or sell your Bitcoins. In short, Mining is all about,
- Collect transactions in a block
- Confirm if transactions are legal
- Select the header of the most recent block and add it in the new block as a hash
- Found the solution of work problem
- When the solution is found, the new block is added to the local Blockchain (chain of blocks utilize to distinguish Bitcoin transactions) and transmitted to the network
Upcoming trends in Bitcoin for the year 2016
- Once in a four years, the number of Bitcoins harvested by the Bitcoin Miners and cuts in half. During the summer 2016 the gape of these four years will be ending and that’s the time to cut down Bitcoin in half every 10 minutes.
- Blocks are the different chunks of data which are stored in the Bitcoin network. As more people buy and utilize the Bitcoins, the network will slow down. So block size will be changed to overcome this problem.
- Financial firm will also continue to look at the Blockchain for the transaction security. When they are not using Bitcoins directly, a Blockchain cloud help to verify any financial transaction.
The analysis demonstrates that Google searches for the Bitcoin has flowed by 157% in today’s era. At least five new companies with $1bn valuations are anticipated to appear within the following year. Financial services firms are good to go with spending almost a large portion of a trillion dollars on IT, one year from now. Major worldwide banks start to grasp Bitcoin and blockchain technology. Bitcoin cost is shaky and increasing more each single day.
Some Myths and reality described here about Bitcoin:
- Myth: Bitcoin’s Blockchain technology is effective only when split from the Bitcoin
- Reality: Blockchain and Bitcoin both are effective in the same manner
- Myth: Transactions of Bitcoins happens in real time only
- Reality: Bitcoin transactions are slow actually
- Myth: Bitcoin transactions are almost free
- Reality: The transaction cost is hidden
- Myth: Ecosystem of Bitcoin is decentralized
- Reality: Ecosystem is managed and controlled by a few
- Myth: Bitcoin is ideal and non profited
- Reality: Billions are invested on the Bitcoins
- Myth: Bitcoin is more secure than other transactions
- Reality: Security failures origins by human
The wild variations in value that make Bitcoins so fascinating and gripping to study could make you a tycoon one day, and may be a poor man the next day.