Bitcoin has been in the news the final couple of weeks, but a lot of people are still unaware of them. Could Bitcoin be the future of online currency? Case one of the questions, commonly asked about Bitcoin. - bitcoin trading bot
How Does Bitcoin Work?
Bitcoin is a type of electronic currency (CryptoCurrency) that is autonomous from traditional banking and got into circulation in 2009. According to some of the top online traders, Bitcoin is considered as the best known digital currency that depends on computer networks to fix complex mathematical problems, to be able to verify and record the facts of each transaction made.
The Bitcoin exchange rate does not depend on the central bank and there is no single authority that governs the availability of CryptoCurrency. However, the Bitcoin price depends on the level of confidence its users have, as the more major companies accept Bitcoin being a method of payment, the harder successful Bitcoin will become.
Benefits and Risks of Bitcoin
One of the benefits of Bitcoin is its low inflation risk. Traditional currencies have problems with inflation and they tend to lose their purchasing power every year, as governments carry on using quantative easing to stimulate the economy.
Bitcoin doesn't have problems with low inflation, because Bitcoin mining is fixed to just 21 million units. Meaning the release of new Bitcoins is slowing down and the full amount will be mined out within the next couple of decades. Experts have predicted how the last Bitcoin will be mined by 2050.
Bitcoin has a low risk of collapse unlike traditional currencies that count on governments. When currencies collapse, it leads to hyperinflation or the wipeout of one's savings in an instant.
Bitcoin exchange rate is not regulated by government and is an electronic currency available worldwide.
Bitcoin is simple to carry. A billion dollars within the Bitcoin can be stored over a memory stick and placed in one's pocket. It really is that easy to transport Bitcoins compared to paper money.
One disadvantage of Bitcoin is its untraceable nature, as Governments along with other organisations cannot trace the source of your funds and as such can attract some unscrupulous individuals.
How to earn money with Bitcoin
Unlike other currencies, you can find three ways to make money with Bitcoin, saving, trading and mining. Bitcoin can be traded on open markets, which means you can buy Bitcoin low and sell them high.
Volatility of Bitcoin
The need for Bitcoin dropped in recent weeks due to the abrupt stoppage of trading in Mt. Gox, which is the largest Bitcoin exchange on earth. According to unverified sources, trading was stopped due to malleability-related theft that was said to be worth more than 744,000. The incident has affected the confidence of the investors towards the virtual currency.
In accordance with Bitcoin chart, the Bitcoin exchange rate improved to more than $1,100 last December. That has been when more people became aware of the digital currency, then the incident with Mt. Gox happened and it dropped to around $530.
In 2014, We predict exponential growth in the buzz of bitcoin around the world with both merchants and consumers,� Stephen Pair, BitPay's co-founder and CTO, �??and anticipate seeing the greatest growth in China, India, Russia and Latin america.
India has already been cited because the next likely popular market that Bitcoin could transfer to. Africa could also benefit hugely by using BTC as a currency-of-exchange to get around not having a functioning central bank system or another country that relies heavily on mobile payments. Bitcoin's expansion in 2014 will be led by Bitcoin ATMs, mobile apps and tools.
World Experiences Bitcoin
More and more people have accepted the usage of Bitcoin and supporters hope that certain day, the digital currency will be used by consumers for his or her online shopping and other electronic deals. Major companies have accepted payments with all the virtual currency. A number of the large firms include Fiverr, TigerDirect and Zynga, amongst others.
The Future of Bitcoin
Bitcoin works, but critics have asserted the digital currency is not ready to be used by the mainstream because of its volatility. They also indicate the hacking from the Bitcoin exchange in the past that has resulted in the loss of several huge amounts of money. - bitcoin trading bot
Supporters of digital currencies have declared there are newer exchanges that are supervised by specialists and venture capitalists. Experts added that there's still hope for the virtual currency system and the predicted growth is huge.