Bitcoin - Best Payment Method
In 2008, Satoshi Nakamoto, a man whose identity still remains unknown today, registered the domain "bitcoin.org", and 10 years later Bitcoin (also known as BTC) has established itself as the most popular form of cryptocurrency. Bitcoin has given rise to the growth of a multitude of coins trying to copy its success, with some being successful, but a lot more failing. Bitcoin started life with a value as low as $0.30, but has steadily increased over the years, reaching an all-time high of $19,666 on December 17, 2017.
The price has since dropped to a little over $6,000. The cryptocurrency shows a lot of volatility due to increasing pressure from countries like China, which have recently banned Bitcoin, resulting in the closure of over 127 trading platforms. A lot of countries have also banned the cryptocurrency, including but not limited to South Korea and Ecuador. Recent security breaches have also shown that cryptocurrency is a hunting ground for hackers, with a lot of value lost due to the hacks. Bitcoin is backed by the block chain.
How it Works?
The way to deposit Bitcoin varies depending on the country. It's a little bit more complicated than the usual forms of payment, like cash or cheque. Usually, for Bitcoin, one would need an eWallet, and need to deal with an exchange. An online wallet is used to save the coins and most online wallets are free. In most cases, choosing a wallet is easy and can be done in minutes. Next is the exchange, and popular Bitcoin exchanges exist, such as Coin Base and Kraken.
You can also easily find local exchanges depending on your country. You usually exchange cash for Bitcoin by paying with your card, and this is then transferred to your wallet address. You get a wallet address when you register your wallet. Withdrawal of Bitcoin can be done by reversing the process explained above; you can easily sell coins on the exchanges. Secondly, a lot of stores accept Bitcoin as a form of payment, such as Gyft, Zynga and Lumfile.
Benefits with this Method
- Total Freedom: with Bitcoin, you don't have to worry about banks, a central authority or limitations imposed by financial institutions.
- Transparency: all transactions performed with Bitcoin are always available for everyone to see. Usually, the wallet addresses are made available and not personal names.
- Very low transaction fees
Disadvantages with this Method
- Theft: wallets are usually vulnerable to theft from hackers
- Low Acceptance: while Bitcoin is accepted online, it is difficult to pay with Bitcoin in shopping malls or stores
- Volatility: Bitcoin and other
Review and Summary
There is no doubt that, somewhere in the future, a form of electronic cash will be needed. And with current market indications, Bitcoin is the most popular and most valued cryptocurrency in the world. While it faces a lot of problems with regard to security, market fluctuations and low acceptance, a lot of growth has been achieved; and at some point, economics will merge with technology, and Bitcoin is in pole position to take advantage.
With improvements to blockchain technology, Bitcoin's security will improve, though it is still difficult to see how it would replace the use of cash, especially since it's not controlled by the government. It's also difficult to see how Bitcoin would perform in a capitalistic system. There is also a huge divide between the predictions of various market analysts, with some believing thatBitcoin will indeed be the future of electronic cash. For now, we will just have to see how long Bitcoin can keep defying the odds, even though the future of the crypto giant looks bleak.