BITCOIN- A trap or Commodification?

Bitcoin, a very common term used nowadays everywhere, is a type of digital currency developed in the year 2009 January. One other term that we get through this is Cryptocurrency, which is a contactless payment service offering the individual or companies to spend, buy or invest digitally. It’s not a form of physical money that’s being used worldwide; rather, it works on the digital entry in the online database. Also, cryptocurrency refers to encryption to verify transactions.

Concept of bitcoin

The concept of Bitcoin was developed in 2008 under the name of Satoshi Nakamoto. But it was only in 2009 when the use of this currency started as open-source software. Bitcoins are a result of Mining, which is a record-keeping system through Computer networks. With the increase in the rate of usage of Bitcoins, which can be exchanged for Currencies or other commodities, the government even desires to levy taxes against it. The transaction of Bitcoins is completely a computational calculation where there is an interface between the Giver and the Receiver, and the command given is in computational language that is further simulated. Bitcoins are received at the particular address in the form of Output. Though the fees for the transaction are completely optional, the miners are allowed to choose from the options available as to how much fees they need. It also depends on the storage. Bitcoins are registered and stored in a Blockchain as a Bitcoin address, and its authentication is done through a private key.


Features of bitcoin

Bitcoin also has the feature of Wallets where they are stored. It usually carries all the information regarding the transactions. As Bitcoin is inseparable from the Blockchain ledger, the Wallet merely acts as a storage house of data regarding the gaining and spending of Bitcoins. This information can be easily accessed by the miners when they download the copy of Blockchain.

Now we should also see some great benefits of using bitcoin only in cryptocurrency. It is a faster and much cheaper payment method. Also, Merchants and individuals using bitcoins are not restrained by set banking hours and the work of people in the banks; moreover, withdrawal limits or long transaction execution periods before funds become available. We tend to see much better transparency in the payment methods. The kind of acceptance Cryptocurrency has seen in the market brings us more and more opportunities to accept its usage personally.

The increased illegal practices being carried out online also approaches the applicability of laws to survey the Authentication of Bitcoin transactions. Hence, I believe the government’s desires to put taxes against it may serve the purpose correctly.

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