Bitcoin is a decentralized digital currency which works without an administrator or a central bank. While still a debatable implementation, monetary dealings have found a new and more convenient meaning due to purchases being carried out through digital transactions. With the administration of this concept, money need not be carried around physically. Bitcoin is now back in headlines after ascending in value. It was worth $2800 on May 25, up from $1200 at the end of April.
PSEUDONYMOUS – The transactions and accounts are not connected to real world entities. Bitcoins are received on address chains of about 30 characters. While it can help trace the flow of transaction, it is challenging to connect addresses to real world users.
FAST AND GLOBAL – Transactions are implemented instantly with a confirmation in a couple of minutes. The concept is completely indifferent of the user’s physical location owing to its global network.
SECURITY – Cryptocurrency dealings are locked in a public key cryptography system. It is nearly impossible to retrieve information from chains of encrypted numbers making it a reliable and secure form of transaction.
NO PERMISSION – Cryptocurrency isn’t monitored by anyone. It is a software people can download and use free of cost. Not set criteria is required for the adoption of this concept.
A finite number of 21 million bitcoins exist. Every four years, the number of bitcoins released relative to the previous cycle gets cut in half resulting in the circulation approaching 21 million but never touching the peak. The reward to miners, which stands at 12.5 bitcoins also gets reduced by half, hence isolating bitcoin from inflation. However, a potential hack could be catastrophic to the future of bitcoin resulting in the draining people’s wallets with no promise of reimbursement.
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