Bitcoins white paper that appeared on the internet in 2009 old us the principles of the working of this cryptocurrency. The developer wanted to present the world his invention that can replace any of current currency on the market. However, in time, the popularity has grown and the possibility of bitcoins how to use has changed too. Has been it bad or good, but anyway it was the realising of the beginning idea of the developer of Bitcoin. Bitcoins market have been becoming bigger and bigger since the opening, but in latest time it has increased more than earlier. Bitcoins latest news are becoming one of the most important news in world economy now and avoid its problems may cause a lot of problems in the future. Nevertheless, what is going to happen with cryptocurrency in the future? Is it a best place to invest or just a big affair? Will bitcoins creators change the economy?
It will be good to begin with the considering the first aim that were put to the Bitcoin, when it was appeared in 2009. The goal of this system was to rationalize the communications between the users. Especially it was related to the field of the finances. Bitcoin is built on the technology of the distributed ledger, or if to say more correctly, on its branch Blockchain. How does this system work? A distributed ledger is a database that is consensually shared and synchronized across network spread across multiple sites, institutions or geographies. It allows transactions to have public “witnesses,” thereby making a cyberattack more difficult. However, the technology can be private.
Distributed ledger technology is one of the most progressive field of development in modern computer science. One of the most famous and used variants of this technology is a Blockchain. Blockchain is a distributed database, which contains its information in the special blocks. To make this system work completely, they creators must unite these blocks into the chains. Obviously, the information can be saved outside the technology and boxes.
Blockchain is very famous because of Bitcoin and other cryptocurrencies – they all build on this platform. However, there is also one innovative technology, which is based on it – it is smart contract, but it does not pretend on being the revolution in the online world. Turning back to the Bitcoin – why it is so attractive to the miners and investors?
As the time showed us, bitcoins accounts are used to not only make the paper work of any company less needed and so necessary. Bitcoins machine have produced so many coins, that now they are used not only between the companies that have their own network to do it, but also as an alternative currency on the market. If to sum up all these consequences, the question about the utilityand harmfulness of the cryptocurrency are becoming more and more actual. There are some circumstances, that ca interfere any of cryptocurrency become really successful invention in the future.
It was mentioned before, that there are some conceptions that consider Bitcoin as the potential global currency that are going to unite the world. It is a good idea, but there are not resolvablein near future problems that will decline any of trial of this. It is well-known fact that states have the monopoly on the emission of the currency. Bitcoin because of its open distributed ledger technology afford mining the coins to any person, who has a wish and possibility to do it. It will be not a surprise that in years authorities will become attacking the cryptocurrency as an enemy, which can destroy world economy. It can happen because number of the coins does not guaranteed by the number of the money. Will be bitcoins accepted by the state or not, there are also other big problems with cryptocurrency in modern world.
The second one is about the legal basis of using Bitcoin. There are special markets, where you can exchange your coins on the money. However, no one can guarantees you the safety of the deal, and this causes the risks for the players on the market. On the risk also infuses that fact that bitcoins scams destroy a big part of reputation of this business, which is not so high. Bitcoins local owners know that it cannot happen to the careful businessman, but the new ones do not want to risk in so uncertain place.
There is also problem with the problem of scale of the Bitcoin, but it is a question to the developers. By now, we can say that the future of the Bitcoin will be not so good as the latest few years. The developers and owners should reviews their position that nothing will happen and look for the decision that will save Bitcoin, if they want to this.