Every once and a while, a new phenomenon appears in our society, and it sometimes takes a while before we get used to it. We can only imagine how long it took our ancestors to accept the wheel or some similar invention, and the main reason for these “delays” in acceptance comes from one of the core human instincts – the fear of the unknown. Of course, this emotion can even be traced back to our fundamental survival instinct, but when it comes to modern things – let’s not be so dramatic. For instance, Bitcoin is a relatively new phenomenon in the global financial world, and people are still adjusting to it and gradually accepting the benefits that come from using this cryptocurrency.
What exactly is Bitcoin?
Cryptocurrencies are a new method of monetary exchange, and they are offering an alternative system to our traditional government-based methods of producing and regulating money. Several notable cryptocurrencies are nowadays used by people from all over the world, and you could pay for a lot of “ordinary” activities and services by one of these virtual currencies. The most prominent ones are Ethereum, Ripple, Litecoin, Monero, etc., but Bitcoin is certainly the most popular and most widespread method.
Bitcoin was created in 2008, by a person (or group of individuals) under the pseudonym Satoshi Nakamoto. He invented a Peer-To-Peer electronic cash system, and in the end – this resulted in a creation of an entirely decentralized digital system. What this means is that Bitcoins do not have a central authority, and everything about this cryptocurrency is established by a mutual consensus and interaction.
The Benefits Of Using Cryptocurrencies
Cryptocurrencies, or Bitcoin, in particular, are offering several highly interesting and exciting benefits to its users. For example, Bitcoin is fast, and it is global, which means that transactions can be performed quickly and without any fees. Anonymity is another important characteristics of this system because clients can use Bitcoins to buy any merchandise without leaving any proof of their real-world identity. Unfortunately, this fact has already found its use in the black market and dark web locations, but the future will tell if this type of use of Cryptocurrencies can be eliminated and prevented.