October 25, 2017

The History Of Bitcoin

The History Of Bitcoin

Since its inception in 2009, Bitcoin has definitely come a long way. The financial evolution and revolution has changed the way transactions are managed – and the same happened for digital currency.

Bitcoin is often compared to gold in value. In effect, the US currency has always been based on gold. With bitcoins, no single entity dictates its value, not the government or banks, but the community itself. The idea behind bitcoin is about disrupting the system or decentralization. This means bitcoin is completely independent and free from interferences from any authority figure or middlemen like a bank or government.

The creator of Bitcoin is on stealth mode and operates under the pseudonym Satoshi Nakamoto. The person itself remains anonymous. Privacy has always been important for bitcoin and its creator magnifies this with his anonymity.

Currency in order to be accepted has to have intrinsic value so as to ensure stability. Bitcoin is now accepted by some merchants and vendors in replacement of or alongside fiat money. One of the giant international retailers that accepted bitcoin was Dell. airBaltic also started accepting bitcoin payments and posted this announcement on Twitter. They are indeed the very first airline in the world to accept bitcoin as payment for flights.

Along came Microsoft which definitely sealed bitcoin’s fate as the currency of the future. Users can now fund their accounts using bitcoin to purchase various games, apps, and other digital downloads.

Bitcoin is treated both as a commodity and a currency. While this digital token can be used to purchase products and services from retailers, this is also regarded as property by the government or IRS. According to IRS, these virtual currencies are to be treated as real currencies or property intended for federal tax purposes. In 2015, the United States Commodities Futures Trading Commission stated as-a-matter-of-factly that bitcoin is indeed a commodity.

Bitcoin has been a hot item for the past decade. This has generated a lot of fans and critics over the years. Despite always being declared as dead, bitcoins is still the next big thing happening in the internet of things. Bitcoin will soon mature as more brands are accepting this cryptocurrency but it will definitely take decades to reach that point of no return.

Many companies who are jumping into the bitcoin craze or madness are only doing so in order to solidify their position right in front of technologically savvy audiences. There are tons of reasons why companies are now accepting bitcoin payments and here are some of them:

  • Low transaction fees.

    Fees with bitcoin payments are relatively lower in comparison to using PayPal or credit cards.

  • Speedy transactions.

    Bitcoin payments are almost always instant or would just take a few minutes as compare to several days with wire transfers.

  • Serves as buffer for inflation.

    With fiat money, the government can print as much money required which would decrease the value of its currency and result to inflation. In the case of bitcoin, there is only limited or scarce amount in circulation which protects the currency from inflation.

With using bitcoins, you are in complete control of your own coins. No middlemen or banks can hold it for you or lock you out from accessing your funds. The edge of bitcoins is showcased in its flamboyant and enigmatic history that began from a mysterious creator who started this technological revolt of bitcoin. It’s an independent and secure way of transactions that gives you the upper hand in managing your own coins.

 

 

 

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