Bitcoin, the world’s fastest growing craze in the world of cryptocurrency, is globally dominating the online money markets. As of February 2015, over 100,000 merchants and vendors accepted bitcoin as payment. Many people do not trust the bitcoin because it is not like real, tangible currency we have been using for years. Cryptocurrency seems to be deceptive because it lacks physical properties.
Bitcoin is not the only cryptocurrency that exists. It was just one of the key players in the global explosion of the “computerized currency”. Bitcoin started in 2008 when an unknown software developer brought forth the idea of having a currency that can buy goods and services but is based on owning a virtual token, which in essence is just a line of code. This line of code or token can then be used throughout the bitcoin network as a form of currency. The developer, identified as Satoshi Nakatomo, had the idea of the Bitcoin cryptocurrency because he wanted a world where transactions can take place outside of banks and central authorities. Instead of a human being in a physical bank handling all the transactions and monitoring them for any signs of fraud, a computer will take care of all of that instead. Instead of a bank printing notes and minting coins, it is the computer that will create and hold the currency.
The process of acquiring Bitcoin, of course, starts off with a technology. You sign in onto your computer and insert a memory stick because you will need to save vital information about your accounts which are holding the Bitcoin. Remember, since there is no bank involved, there is no customer service who can help you sign into your account if you forget your details. Once you forget your log ins and passwords, your money is lost forever. There are even stories of people sadly passing away, leaving millions of dollars’ worth of bitcoin in their accounts and relatives being unable to access it because they don’t know where the codes to that account were saved.
To buy bitcoin, use trusted platforms, such as Coinbase or Coincorner. When you register for your account, the username will usually be your email. To buy the bitcoin, you will need a debit or credit card, that will allow you to spend your real-life currency on the digital one. The transaction runs exactly like an online purchase and once successful, you will have bitcoin in your account to spend.
The above process seems dubious to many. Using real money that most of the world utilizes to buy a virtual money that very few use easily screams scam and fraud, at least according to some. This is where Bitcoin struggles the most in terms of breaking into the “real world”. The mere numeric value assigned to the Bitcoin is not enough to convince the general public that its worth investing into. Not to mention that the said worth fluctuates quite a bit. People argue, that there’s nothing stopping Satoshi Nakatomo from altering the computers codes to insinuate that there is a large demand, just to hike up the coin’s value. As the world tries to accommodate itself to this new invention, many questions still arise regarding the acceptance of the Bitcoin.