What’s Bitcoin | Here’s All You Need To Know!
Bitcoin is a world that you must be hearing a lot these days. It has become so popular and a lot of people are excited about investing in this asset and making money. But do you ever think about what kind of asset bitcoin actually is? Well, you may already know that bitcoin is a cryptocurrency, but what is that? And more importantly where does it derive its value from and how do investors even earn from it?
Bitcoin is definitely a type of currency, but it does not have any fiat of the government of any country that gives it value unlike other currencies. It gains value simply from the trust of people who trade in it. But why do people trust it? Well, a big reason to trust it is that it is a cryptocurrency which is hailed as a technology of the future. Right now paper currency dominates and we use it for our day to day money needs. But in the future, we may actually use cryptocurrencies in place of paper currencies.
Cryptocurrencies are digital currencies. And making things digital makes it a lot easier to work with them. To get a perspective, you can compare letters with emails. Earlier it was not possible to make money digital, but Bitcoin came with a breakthrough technology that used cryptography and blockchain to make hacking impossible. With this dramatic innovation, we can now have digital currencies without the fear of hacking. And although the governments of various countries aren’t ready to give legal recognition to cryptocurrencies, people do see a lot of future potential in them.
