Bitcoin: Future Money?

Bitcoin is a type of currency designed digitally and encrypted for verifying asset transactions, and to control currency creation; the name given to this type of currency is cryptocurrency. This world famous currency was created in 2009 by Satoshi Nakamoto. This Peer-to-peer electronic cash system is given the symbol XBT for market use. Like any currency, Bitcoin has its own unit system ranging from millibitcoin (0.001) to satoshi (0.00000001).

The design of Bitcoin is extremely complex, but very reliable. First, one of the questionable topics in this matter is its security. Believe it or not, Bitcoins are safer than regular money. The obvious thing is, it can’t be stolen physically, and even if it can be stolen electronically the following explanation will show you how hard it is to do it.

I want to start talking about saving this electronic money. A cryptocurrency wallet is similar to a tactile wallet where you store your money. The electronic wallet works like Amazon or any website accounts where you store your credit cards, except that in this case you are actually saving money. The way you can get this money is to set up an address at the time of creating your Bitcoin account. This wallet has a hardware device that looks like a clicker where you can receive notifications of any type of transaction.

The way the wallet is made equips the way transactions are made. The transactions are primarily the same as today; therefore, you exchange an output for an input. The way to track currency is that Blockchain broadcasts live currency movement. Every time a payer sends bitcoins to a payee, the transaction is registered in the blockchain. This blockchain is managed by currency programmers. To avoid duplication, transactions follow inputs and refer them to previous outputs.

But secure transactions cannot do the whole job of securing money, it requires human management. The money was managed by the miners. What these people do is that they keep records of the transaction and through the system they look for inconsistencies. The Blockchain is made up of blocks, each block containing a cryptographic hash. A cryptographic hash is a set of data that can be traced. This new block requires proof-of-work of others to be accepted.

Bitcoins are already gaining worldwide acceptance. As of now, Bitcoins can be used in more than 100,000 institutions worldwide and is expected to continue to grow. Even if the uncertainty behind the fact that there is no government support makes it hard to believe that this is the money of the future, but beware, it can affect the world.