What is Bitcoin and is it Viable?

In recent months, the bitcoin has experienced successive peaks and collapses. Is it a real alternative to traditional currencies, or a simple speculative bubble? The point that many people are making is that this digital currency has high potential. The bitcoin is divided between those who see this virtual currency as a veritable revolution in transactions and those who openly mistrust it. But what exactly are experts saying about it?

What is the bitcoin? The bitcoin is a universal virtual currency. Created in 2009 by Satoshi Nakamoto, it is an autonomous monetary system that does not need banks to process bitcoin transactions or a central bank to create new ones. These tasks are supported by a community of users whose computers are peer-to-peer networks. Click here to buy bitcoin instantly.

The bitcoin performs traditional functions of money. It represents a unit of account by which the value of a good, service or asset is measured. It facilitates business transactions and it represents a value that can be stored for use in the future. But it is not a currency that “has legal tender”, insofar as one is not legally bound to accept a payment in bitcoin. Above all, the bitcoin is not accompanied by a legal guarantee of repayment at any time and at nominal value.

Money is created by members of the network, called “minors”. These users put their computing capabilities to work in order to validate transactions and improve network security. As a reward, they receive transaction costs of the transactions they have confirmed, plus new bitcoins. But the amount of money created by the system is limited by the program to 21 million bitcoins, a limit that could be reached around the year 2140. Moreover, the pace of their creation is regulated and fluctuates to take account of the number of minors and the evolution of the computing capacity of connected computers.

This “evolution” has grown by 25 bitcoins every ten minutes since January 2013, half that of its creation. ” this sense, it is a currency commodity comparable to gold because the resource is limited. Many experts see bitcoin as a very good protection against inflation since its monetary creation is not done by “printing money”.