What is Bitcoin
Bitcoin, to provide a working definition, is a digital currency that was introduced to the world in 2009 by a Satoshi Nakamoto, whose identity still remains a mystery. This digital form of currency, which was the world’s first cryptocurrency, laid a solid ground for several other cryptocurrencies that would later be fashioned over the years.
Initial Popularity and a Subsequent Dent in its Value:
Bitcoin, in its initial days, grew to be wildly popular with its promise of offering a significantly lower transaction rate when compared to its traditional counterparts. However, it soon suffered from major fluctuations owing to the volatile nature of the cryptocurrency, and investors and speculators started showing apprehensions about how this currency would fare in the future. However, the market value of Bitcoin soon recovered and how! And after two decades, the popularity and value of Bitcoin are still high on success. Keeping its turbulent nature apart, the one thing that this cryptocurrency must be credited with is the pathway it led for a host of blockchain-related projects and a myriad of other cryptocurrencies.
The Dynamics of Bitcoin:
Now getting into the dynamics of this cryptocurrency, what must be understood is that Bitcoin is stored and transacted using public and private keys. If we were to get more specific, the balances of Bitcoin tokens are stored away using these keys. The best way to understand the nature of these keys is by comparing them to a traditional bank account number and the ATM pins. The public key is like the bank account number that the world knows and is used by people to transact with you; whereas, the private key is for your use, like your ATM pin, with which you gain access to your Bitcoin currencies. The entire transaction is performed through the Blockchain network, which is a highly secure network running on a complex algorithm. This makes it difficult for hackers to steal and sabotage information. Plus, the Blockchain network is a decentralized system which means there is no third-party involved in the process, thus, making the transactions quick and easy.
Every new technology and innovation has its initial rough phase to overcome if it is to survive and stand the test of time. Bitcoin, too, has had its fair share of turbulence and vulnerabilities to brave. In a crypto market that has evolved over the two decades and has several new cryptocurrencies, Bitcoin still remains popular and is here to stay!