Is Bitcoin Money?
Bitcoin is a cryptocurrency which was started back in 2009. When Bitcoin was created in 2009, it was started as a way to decrease the overall cost of the transaction fee than traditional online payment methods. It was started by an anonymous person/group known as Satoshi Nakamoto. The first bitcoins were launched in a block of 50 which is known as the Genesis chain.
What is Money?
Money is a medium of exchange for goods, services, information etc. With online banking and credit cards usage increasing day by day, the concept of money can be really close to that OF BITCOIN. A 100 dollar bill has its value because the Government backs it up. The money you store in the bank doesn’t change its value.
Nowadays people don’t really handle any real cash, their salary is credited directly to their bank accounts and usually, all the bills are paid through cheques or online transactions.
To say bitcoin is money is not totally wrong but there are many other factors involved which makes bitcoin more than just money.
How does Bitcoin value change?
Since the creation of Genesis block, all the bitcoin transactions are recorded as a public ledger. These transactions are logged in encrypted in form of “blocks”. These “blocks” contains complete data containing all the details of the transactions made through bitcoins from the very beginning. These blocks form a blockchain which is like a public ledger. When a Miner solves the complex mathematical problem from the previous transaction, he gets a reward in forms of Digital currency which is the first hash for the next block. The amount of new bitcoin released with each mining block is known as block reward. The rate at which these rewards are released keeps diminishing every four years.
How is Bitcoin transferred?
For storing cryptocurrency there are various wallets present in the market which are necessary. Cryptocurrency wallets are software programs which are used to store your public and private keys which are interfaced with various block chains this enables users to send and receive cryptocurrency and monitor your balance. Unlike traditional “pocket” wallets these digital wallets don’t store currency in one location or exist in any physical form, all that exists are the records of permanent transactions made through cryptocurrency. when someone trade digital currency they are basically signing off ownership of the coins to your wallet address, they send private and public key for the transaction if the private and the public key matches, the balance in sender’s account will decrease and the receiver will get ownership of those coins.
Is Bitcoin safe?
Safety of bitcoin can be debatable because it promotes decentralized money flow and no Government is responsible for its value or trading. If you lost your bitcoin wallet you can’t access it anymore. It completely depends upon the Miners and people who are acting as a regulator.
Finally, it can be said that Bitcoin has all the characteristics to be termed as money. Due to its changing value and security issues, it will take a little more time for people to trust it completely.