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bitcoin the new way of sending money and banking

Fadiyah Sameh
Fadiyah Sameh
Posted: 2015-02-24

Technology has now become a part of human life. Gone are the days when people would take time to get acclimatized to using technology. People are expected to be up to date with all the technological advancements since many of them are a part of everyday life. Bitcoin is one such recent venture which has delved into the money market of the internet. It is a decentralized method of payment in crypto-currency with no middlemen or banking authority and is a system with a peer-to-peer network via the internet. The fact that it’s a peer-to-peer network means that the transaction fees are much lower as compared to the rates levied by local governing monetary bodies. It also becomes a centralized way of acceptance across any country despite the currency that the country subscribes to and it has no pre-requisites per se or any arbitrary limits. With the booming of e-commerce platforms all over the world enabling people to shop almost literally anything, Bitcoin might just be the next big thing connected to it provided those platforms subscribe to such a decentralised and unconventional payment method. The parties involved in a transaction have the benefit of remaining anonymous and reducing any redundant fees that they otherwise pay at other monetary bodies. Bitcoin is also an open-source network which means that it can be operated, designed and structured by anyone and everyone. Bitcoins are created when a particular transaction is instigated between two people, but there is an additional system involved in the transaction that can be thought of as a Bitcoin client. When you login through your client and try to avail of Bitcoins, you’re given some information such as a time, date, a number etc – called as a mandatory string. This mandatory string is then encrypted, but with Bitcoins, the mandatory string consists of a collection of all mandatory strings before it; so, you are basically encrypting all those who came before you thus maintaining a sort of a legacy called blockchain. The coin doesn't have an intrinsic value but it provides value to a transaction. The only other form of currency – the one issued by governments – represents value that can be ascertained by government-approved banks. This shows itself as a processing fee when you’re wiring money between two accounts. The veracity of a bitcoin, however, can be determined only by its mining – by user confirmation. Bitcoin is basically the software version of your wallet, where you can access your wallet through the internet or even download a software which maintains your wallet, the latter being a recommended option. You can then buy Bitcoins from various sources across the globe, some of them being – people, an international directory of bitcoin exchanges, Coinbase: bitcoin exchange based in the United States etc. You can also obtain bitcoins through acceptance as a payment for the products or services that you may be willing to sell. Bitcoin is currently one of the most efficient ways among its competing currencies, and this very fact will lead to its endorsement and adoption across all platforms globally.

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