Bitcoin is an electronic payment system and an encrypted digital currency. Developed in 2008 by a group of programmers, it does not involve any other private or government organisation. It debuted relatively unknowingly in 2009, at a time when the financial crisis was still underway and the plan was to take power out from the hands of governments and bankers that usually control the flow of currency.
The bitcoin currency is completely decentralised and unregulated. There’s no national bank or government mint, and neither any depositor insurance coverage. The currency is self-contained with no security behind bitcoins. The value of the currency resides within the currency itself. Bitcoins are supervised by a massive web of people contributing their personal computers to the currency’s network and are paid for their work via new bitcoins for the work they do for the network.
Bitcoins work like physical gold that can be used for purchasing goods and services over the internet or ease them away for investment and hope for a return over time. Bitcoins make sending and relieving money possible across borders and are free from being forged.
It allows its users full control over their transactions help keep bitcoins safe for the network. Any extra fees cannot be imposed on anything and payment without any personal information protects from identity thefts. Bitcoins can be converted to lend safety to your money. All finalised transactions can be seen by everyone without revealing the personal details. The bitcoin protocol can’t be manipulated by any government, organisation or person because the currency is cryptographically secure.
Most people are still unaware of this currency and need to be properly educated for ease of transactions and a common currency to be used. Networking is important to spread the word. There are still a very few business worldwide that accept payment in bitcoins. Companies should take initiative to make people more aware about transacting digital currencies. Bitcoins are volatile because there are a limited number of coins with the demand increasing with each passing day. But it’s expected that the volatility will decrease with time. Bitcoins are still in their infancy, with incomplete features.
Criminal traders made the digital currency infamous, buying them in millions to draw the money beyond the law. The value of bitcoins thereafter crossed the $1,000 per coin mark in late 2013. With no government monitoring, banks and financial organisations are totally unnecessary for the digital currency to move. Bitcoin accounts can’t be frozen or examined.
Bitcoins are an investment scheme beyond the control of financial institutions and the traditional police, which can be jeopardised by the wilder involvement of people. So though you might get a good return on your investment, it is unethical and dangerous.
BW Reporters
The author is a correspondent with BW Businessworld with keen interest in HR and employee welfare.
