Bitcoin is a digital currency created 9 years ago by anonymous people who use pseudonyms. Great books distributed using bitcoin is called Blockchain, which is not operated by a centralized authority, unlike Government-issued currency. This prevents the problem of long double-digital money spending.
Users who participate in the network of Bitcoin and verify the transaction referred to miners and appreciated for their work. Bitcoin price rise from a little below $1,000 to close to $19,000 on 2017 alone.
There are many supporters who believe that Bitcoin digital currency will replace the physical currency in the future. Cryptocurrencies's popularity stems from the fact they allow payment system at no cost, they can be exchanged for currency and they're anonymous and secure. In fact, countries like Venezuela and Zimbabwe, where the traditional currency of hyper-inflation, showed an increase in the popularity of the Bitcoin because value is more stable than the value of their national currencies.
Some believe that, even if cryptocurrencies is not the future, Blockchain. With decentralization, natural resistance to hacking and transaction costs are low, the technology can be used as national currency, Central banked.
Although the Bitcoin is very popular nowadays, it has some limitations that stop Bitcoin into currency futures:
Regulatory risks: because of the nature of the transaction, decentralization and anonymous Bitcoin can be used for the transaction of the black market, money-laundering, tax evasion and weapons procurement. This causes many Governments seek to regulate, restrict or prohibit transactions Bitcoin (China, South Korea).
Volatility: the Cryptocurrencies has been very volatile. The value of Bitcoin can dollars one day and then the other $12,000. He acts like a stock, unlike the national currencies that are expected to be relatively stable. So, like the stock market, can crash (which is something which has already happened).
Time: Bitcoin transactions take time. They took something between a few minutes to an hour, which makes them slower than bank transactions is usually done in a matter of seconds.
The limitations of the technology: given the fact that Bitcoin is based on a relatively young technology, face some of the limitations of the technology. Digital fortune can be removed by a computer crash or a hack. These limitations will probably be overcome in the future, as the technology develops.
Complexity: Cryptocurrencies, especially the Bitcoin, very popular but users of these technologies are still a minority. The technology they are based on is not easily understood and understandable only to those that are very technologically adapted.
All in all, to be the future of Bitcoin currency, it must meet the criteria are complex. It should be based on a technology that is complex enough to avoid scams and hacks but the technology is simple enough for the average user to understand. Must maintain anonymity but keep track of damage. Cryptocurrencies, including Bitcoin, is still unable to cope with the problem, but the success of the cryptocurrencies the future is expected.
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Why is Bitcoin so popular? What is the future of the currency? originally published in the Krown on Medium, where people continue the conversation with the highlight and respond to this story.