“A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution.”
These are the opening lines of the paper published by Satoshi Nakamoto , the inventor of bitcoin. Nobody knows his origin, alias but everyone knows that he owns about 1 million bitcoin which is worth 6 billion US dollars now.
The idea to abolish fiat currency and move towards a more global world which doesn’t involve the role of governments and central banks have been up after the invention of bitcoin in 2009.
After the 2008 bank crisis , the man behind this cryptocurrency had a clear vision to asses the situation and provide a solution for it. But how to spread the currency , the next question which might have triggered him. The answer could have been to create only limited amount which cant be created further
and make it valuable. Though bitcoin can be created by mining but it is nearly impossible to create them without supercomputers now. The price fluctuation of bitcoin is mainly because of the limited number and the picture of future. The future is digital.
Mining ,an activity known for earning bitcoin is a humongous process which requires huge computing power . Miners are situated in countries ranging from
Iceland to China. People are competing each other and as more people competes it requires more power to earn the coins. Some Miners are known to have paid up to 1 million USD as electricity bill for their mining activities. Bitcoin have surged to rates of 6000USD per coin. This will add more hustle -tussle to the mining activity as the limit per day for mining bitcoin is also fixed per transaction.
The introduction of cryptocurrency has also introduced us to a new ledger for these transactions, Block-chain. Proponents of this service which includes IBM has said that it will eradicate all illegal leakage of subsidies and money from one location to other. But as the bitcoin transaction just have an ID and no name , it is widely used by drug dealers for there illicit use. A popular site known as “The Silk Route” used only bitcoin as the medium for its functioning. Only future can tell whether block chain and bitcoin will be a bane or boom.
The nature of human to invent things and then raise skepticism about it has been prevalent from earlier times. Internet also was introduced as an instrument to send communication by the Russian army. Only time will tell whether that the cryptocurrency will be an instrument for benevolence or malice.