The cryptocurrency market is beginning to make an evident comeback, as the trading volume of large digital asset trading platforms has reported an increase over the past week. Major cryptocurrencies, i.e., ethereum, bitcoin cash, and litecoin have experienced a 5% increase in the last 24 hours.
– What is bitcoin?
– How does it work?
– Why is there a coming bitcoin explosion in the market?
What is bitcoin?
Bitcoin is a cryptocurrency, a form of e-cash that has no physical equivalent. It was created by an anonymous person (or group), known as Satoshi Nakamoto, on the 3 rd of January, 2009.
Bitcoins are generated using a free computer program to solve hard mathematical problems.
This process is referred to as mining. Solving a problem adds a transaction to the ledger, and more bitcoins are issued as the ledger continues to grow.
Interestingly, every bitcoin has its own unique identity, and are also characterized by their position in a public database, known as the blockchain.
Blockchain technology is used by bitcoin to verify its legitimacy. It also means that, because of its public nature, you don’t have to build a trust-based relationship first with the other party. Still, certain countries have banned its use, while some governments have embraced it.
Did you know that getting Bitcoin is also really easy?
How does it work?
The blockchain is maintained by a network of computers around the world.
According to DailyMail, mining bitcoin requires more energy than searching for gold. Due to the huge amount of computing power needed to create the virtual currency.
Bitcoin is a decentralized currency without a central bank, single owner or administration that can be sent from user to user via a peer to peer network. It has no need for third parties.
Despite its decentralization set up, it functions internationally and keeps gaining value, even when it seems impossible or bleak. Bitcoin is still here and demonstrating positive signs of recovery.
When will the next Bitcoin Explosion Be?
Sure, Bitcoin prices are nowhere near to what they were a year ago. Although they have the ability to surge at any time.
Even today, there are quite a few who enjoy the perks of bitcoin. Miners are getting incentives, users are purchasing things with it as well.
There are people who are wary of its uncertainties though. Buttressed by its erratic cycle of swift rises and falls.
In August 2017, due to transaction issues, bitcoin was split by using a method called hard fork. And that was how bitcoin cash was birthed to help transactions get better. Thereby increasing bitcoins usage and popularity.
Despite the evolution of bitcoin, nearly a decade later, there are people who still strongly believe it is fraud, and that there are too many unknowns within it. Yet bitcoin continues to rise from the negativity of the masses. This is yet more evidence that a very promising market boom is coming for the bitcoin.
Forbes reports that bitcoin went from $6000, at the end of September, to $20,000 midway through December, before returning to its $6000 mark.
From Public figures to financial analysts, cryptocurrency experts to the news media, many have predicted the “death” of bitcoin. But it is now late 2018, and bitcoin is doing just fine.
Although bitcoin has been stuck in the $6500 mark for two months, it has been predicted that it will only rise higher, since it has maintained a strong foundation for most of the year. Some believe a more rapid growth will even happen before the end of the year.
There is always something new with bitcoin, despite the lack of active personnel working with it. This is perhaps because of what Bitcoin really is: A new way to make payments; a safe and decentralized system of currency.
Bitcoin has many governments endorsing its technology. It even boasts of investors who have become millionaires, big time retailers, and a very active community.
Bitcoin has become so popular that it has accrued both the faithful and the cynics.
This particular cryptocurrency has a wide range of powerful stakeholders that invest heavily into it. These very same are aiding its growth and popularity. The Chinese government put force behind bitcoin also, which prompted some other countries to increase their bitcoin investments in order to diffuse the possibility of a Chinese bitcoin domination.
Due to the increased circulation of bitcoin, the mining puzzles are getting even more complex..
In conclusion, bitcoin is not probably not a fad; it is in the top four categories of digital moneys, and is still growing in its popularity and reach. It is too early to tell if it will fall or rise though analysis shows a probable rise in price.