Bitcoin was first launched back in 2009 and by an anonymous entity going by the name of Satoshi Nakamoto. Now the name sounds Japanese but there is no concrete proof regarding the identity of the person who actually started it. Heck, it could easily be a big group of people for all we know but we do know that that bitcoin’s whole working is open-source and the system introduces decentralized record called blockchain that is considered to be a technology of the future.
Now the core strength of the coin lies in its blockchain and without it, the decentralized currency cannot exist. Previously, the concept of a global decentralized currency was just a myth propagated by anarcho-capitalists around the world in the hopes of realizing a true free market around the world that is unregulated by the governments. But, with bitcoin’s rise, the dream has turned into reality. We now have over 800 cryptocurrencies around the world that use blockchain and limited currency generation to keep their worth.
But what imparts value to the bitcoin? There is certainly no gold or other valuable stuff on its back. There is no military or Federal Reserve Bank to give guarantees and the price entirely depends on the speculation of the cryptocurrency trading market. So why the bleep does it cost $5600 for one bitcoin? Surely it has to be a hoax, no?
Well, it turns out, it is not a hoax. The bitcoin’s worth lies in its blockchain, cross-border unregulated money transfer, decentralization, fast transaction and a global army of miners and noders keeping it safe as part of the distributed consensus. But why do all these matter? What is the worth they impart to the bitcoin?
Also, what imparts value to the fiat currencies? Why is paper money of so much value? The reason is government backing and global monopolies being created. Monopolies and government-backed fiat currency rigs the system and creates problems that may never be solved if we stick to these conventional currencies. It is debt, debt and more debt. No wonder small banks are being eaten away by the big banks and branches are being closed around the world.
Now a major portion of financial data around the world is stored in centralized servers and they are prone to hacking, overbearing regulation of the government, taxes, etc that are against the spirit of the free market and create undue hurdles of the economy. Also, there is the debt-based money transfer system that is in place for the fiat currencies i.e Dollar, Pound, Euro, etc. Bitcoin-based currency transfer doesn’t operate in a debt-based approach and that is a huge plus.
So, the value of bitcoin is not just speculation. It is a paradigm shifting monetary approach that will change the world as we know it.
Well @qeysolutions, I do not think we can call bitcoin a fraud, right? It is indeed a global currency. As a newbie in the cryptoworld, my mind is not able to project the future of bitcoin yet. I am still wondering, where would bitcoin be in a few months....
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