Innovating and progressive technologies are changing our life in the latest time so much, that we can even not realise all consequences that they are giving to us. Cryptocurrency is one of them. This theme became very popular among the people, who see in it a solution in many problems that we are having. For example, someone think that it could a good alternative for the current situation with great number of different currencies. Bitcoin or other virtual currency will make all states to accept it as the best variant for the common unit. Other people may think that using cryptocurrency you are fighting with corrupted word order that dominate in our lives. This position is based on that fact that emission of cryptographic units does not depend on any organization or corporation. There are also group of thinkers that see in Bitcoin a tool that are going to unite societies. Using the common currency will make traveling more understandable and available for all, wherever you can life and will lower the level of aggression. However, these theories usually build on the fact that the Bitcoin, Ethereum or Litecoin are going to develop further. Not everyone considers the potential risk that cryptocurrency are going to collapse. Alternatively, there is also a phrase – it is a bubble. To discover the real future of Bitcoin we needed to find out the previous examples of technologies that had so close attention in past to its development. And also to consider Bitcoin as a phenomenon of the presentand to discover the principles of the work. Can bitcoins rate be a symptom of bitcoins bubble? Let’s check it – the role of bitcoins today.
Several years ago in Russia was a phenomenon that was called MMM. It was a financial pyramid, where people invested their money to achieve more in future. The more you invest- the more you achieve. However, in time, it was appeared a big deceive. If to take another case – Personal digital assistant. Someone in pats thought that it would replace PC. Now it is death innovation. These examples show us that the fact of innovation does not give guaranteed result of success and will be a revolution in modern world.
Turning back to the Bitcoin, we should admitit as technology that can change our life in near future. However, how it was mentioned higher – the best way is to find out the basic of it work. Bitcoin is a first cryptocurrency that appeared on the market in 2009. The name of real developer is unknown. Bitcoin does not have centralized management and issuers. Digitally signed transactions between the two nodes are transmitted to all peer-to-peer nodes, and the transfer data itself is stored in a distributed database. Cryptographic methods are used twice to prevent the possibility of spending someone else’s money or using their funds. Database is implemented to Blockchain.
What is Blockchain? This is a technology that allows you to make records (contracts, payments) that are almost impossible to fake. They can be done almost free of charge and without the need for government intervention, courts, or companies to intervene. How can people use it? First of all, it is payments. International and local payments outside the banking system. Secondly, it is a microloan between the citizens and foreigners. This is an important opportunity for poorer people, who do not have access to loans through the banking system. Thirdly, these are far more effective crowdfunding systems to support volunteer or socially important projects. These three examples are financial. Will be used in the real sector. For example, in medicine, education or pension are provided. From the economic point of view, the main advantage of the block is the cheap data verification and the ability to create global networks. Compare this to the main advantages of the internet – cheap data transfer and the ability to create global networks.
This technology has a really big advantage over others alternative variants. It can have public access for everyone, who has a wish to launch. In addition, all cryptocurrencies are built on this type of Blockchain. And this is the key point that can destroy the bitcoin in the future and the same time people, who invested in it.
The problem is that no one controls the emission of the coins of cryptocurrency. It means that the price is guaranteed by nothing. We should take into the consideration that fact that there is no state in the world, which support Bitcoin. It is well-known fact that bitcoins logo contains dollar sign – you can give bitcoins to usd converter and achieve money that not register anywhere. The consequence of it is potential lack of real money in the future – Bitcoin are going to scale. More and more bitcoins mining software are appearing on the market. Moreover, any bitcoins quotes are going to object to this fact.
These facts are the proofs that the bubble of bitcoin is going to be truth. Do you really believe in the words that all about bitcoins is explained?