Throughout history we have seen the rise and fall of many forms of currency with the rise and fall of empires. The evolution of currency as described by the FXCM.COM started out as a way to trade goods and services through the barter system. Tokens were later made to keep track of these transactions as well as to keep exchanges fair. Soon, coins emerged from the invention of the token made out of silver and gold. These coins gave birth to the current currency that we are utilizing today. Therefore, one can say that the evolution of a new currency was long overdue. Hence, with the rise of modern technology, we begin to see the emergence of cryptocurrency: a digital asset designed to work as a medium of exchange that uses cryptography to secure its’ transactions, to control the creation of additional units, and to verify the transfer of assets.
What is Bitcoin?
Bitcoin is a type of cryptocurrency/digital asset designed to work as a medium of exchange using cryptography to secure the transactions, to control the creation of additional units, and to verify the transfer of assets. It represents the true currency for the people by the people. Founded in 2008 by Satoshi Makamoto, a person or a group of people, (no one really knows) Bitcoin was the very first global cryptocurrency and digital payment system. Its creation shook up our societies and currently paved way to other currency similar to it such as Ethereum, Ripple, Litecoin, Monero and Dash.
Why is there so much controversity around Bitcoin?
Bitcoin has been so controversial because it was brought to life by various traditional economic institutions crumbling. The catalyst was the 2008 Financial Crisis where banks were able to create too much money, quickly, then used it to increase house prices and gamble on financial markets resulting in debts being unpayable. Bitcoin serves as a digital gold standard in the whole cryptocurrency-industry, is used as a global means of payment and is the de-facto currency of cyber-crime like darknet markets or ransomware.
The crisis made the creator(s) of Bitcoin make certain that their currency would be the first decentralized digital currency, therefore, no restrictions. Plus, all transactions between users are completed without no middle man like the bank or government. Therefore, all transactions are done in instantaneous speed and are publicly verified. Bitcoin prides itself on being transparent by being publicly verified because the ecosystem is being checked and triple checked by everyone. When it comes to security, Bitcoin is tracked and recorded by thousands of network. However, recently an order of Cease and Desist from the State of Texas has been yet another legal hit on the cryptocurrency and its decentralized
How to obtain Bitcoin?
When thinking about obtaining cryptocurrency, you must follow these three steps:
- Add Bitcoin to Wallet
- Use Bitcoin Wallet to Send and Receive Bitcoin.
First, you must think about a place to store your new bitcoins. In the bitcoin world, they’re called a ‘wallet’ but it might be best to think of them as a kind of bank account. Depending on the security levels you want, different wallets will provide different levels of security. Some act like everyday spending accounts and are similar to the wallet in your purse or pants pocket, while others offer military-grade protections. The next step is to do an exchange. Exchanges and wallets are the best option if you want to engage in regular trading, don’t need total anonymity and don’t mind lengthy bureaucratic setup procedures. Coinbase is the most popular wallet and exchange service that will also trade US dollars and euros for bitcoins. The company has web and mobile apps making it highly accessible to all. You can attach your bank account or credit/debit card to transfer USD to Bitcoin easily.
The revolution is already happening and institutional investors are starting to buy cryptocurrencies, while banks and governments realize that this invention has the potential to draw their control away. Thus, cryptocurrencies are changing the world and how we do monetary transactions domestically and globally. It seems that if you do not have cryptocurrency then you are truly missing out on the dawn of a new era.
By: Teresa Washington