Do you hold a few of these coins? Or did you just google the price of one bitcoin and wished you had some.
Well, I am the latter one. But the problem is that it really isn’t that easy to buy bitcoins.
The main reason why I cannot hold btc is because it is illegal in Nepal.
However, there are other problems that I stumbled upon while researching about this cryptocurrency.
The main question that I now have is that “can you really trust bitcoins?”And if we can’t why are we still trading it.
The first time that I heard about bitcoin mining was a few years back. At that time the price of one btc was just about $800.
None of my friends really knew about it and I didn’t care to know too. But now the price has more than doubled.
It costs me approximately $9,000 to purchase one btc.
How did btc become so popular? Why are people so invested in btc mining?
And should I really trust bitcoin? I will try to answer these questions that might improve your understanding of this cryptocurrency.
What is Bitcoin Mining and How it is Done?
Well if you are really interested in owning bitcoins, bitcoin mining is one of the options.
Nonetheless, the cost of mining bitcoins is very high.
So, bitcoin mining is the process of earning bitcoin rewards after you verify a block of transactions.
However, this consumes a lot of time and energy. And as we purchase bitcoins more and more, the task of mining a btc gets more complicated.
So, people often opt for purchasing bitcoins through fiat currency rather than mining it out.
Bitcoin mining is painstaking but rewarding. So, this is one way to increase bitcoin in your wallet.
Maintaining a Bitcoin Wallet:
In simple words, bitcoin wallet is a software or program where you store your bitcoins.
It is very much similar to a normal wallet. But instead of storing cash, you will store bitcoins.
This wallet holds a key to every single btc. Without this key there is no sending bitcoins to anyone.
There are a lot of ways and applications that you can use to store bitcoins.
However, the most popular desktop softwares are Bitcoin core, Multibit, Armory and Electrum. You can also use mobile applications to hold your bitcoins.
The major reasons why you cannot trust bitcoin:
Cryptocurrencies are always in the spectrum of speculations by the government.
Most of the countries don’t even legalize the use or btc.
So, what is the reason that so many people don’t yet trust the use of bitcoins. Some of potential reasons could be:
1. The Volatility of Bitcoin Price:
The prices of bitcoin is very volatile and you cannot trust it. Just like the shares, the prices of bitcoins fluctuates everyday.
Although, the price had become somewhat reliable in the past years, currently the fluctuations have cause some chaos.
Due to its unpredictable nature, it is suggested that you should not hold btc at this point.
Rather you should convert into cash as soon as you receive any payments in bitcoins.
2. Recent News on Bitcoin:
The usage of bitcoins surged in between 2014-15 like anything. But recently there are many issues that people have discovered due to the usage of btc.
Plus the prices of bitcoin has fallen down considerably in the recent days.
The major reason why bitcoin isn’t able to do as well is because there is competition.
Not only from the end of other cryptocurrencies but there are other bank applications that make transactions easy.
At the same time there is a trust factor towards these transactions due to the involvement of the banks or government.
Similarly, there have been cases of reports where btc have been used for illegal activities.
This has constantly reduced the governments trust for the cryptocurrency.
3. Cryptocurrency Regulations, Crime and the dark web through bitcoin:
It is difficult to trust bitcoins. As a matter of fact no one is even sure who actually started it.
And amidst all this uncertainty comes the doubt of the governments itself.
The blockchain technology that bitcoin uses makes it more secure. Nevertheless, it is this very own technology that hides the identity of its users.
Bitcoins are constantly being used to purchase illegal items like guns and fake documents.
Dark web is the platform where people have constantly misused btc to purchase the things that are illegal.
The use of cash or bank accounts will help trace purchases made by people.
But with bitcoins it is possible to anonymously purchase illegal stuffs.
And the worst part is that no one can regulate those transactions. There is no authority to the bitcoin.
Trust the Bitcoin’s blockchain technology:
All the cryptocurrencies run under the blockchain technology.
For years we have praised btc due to this technology but now it’s time that we acknowledge that it might not be all that perfect.
However, one of the main reason people trust btc is the blockchain technology.
It is not easy to hack into anyone’s bitcoin wallet. This is all because of the technology that is uses.
The blockchain technology is very complicated to use. And most of the times due to the anonymity it is difficult to regulate those.
But this makes it safer and secured as compared to other technologies.
So, right now we don’t know if bitcoins are really going to be used forever.
We don’t yet know that if we can really trust its usage given that most of the countries still have no regulations over cryptocurrencies.
So, it is for us to wait and see how the story of bitcoin unfolds in the future.