In a world where online transactions are gaining momentum, bitcoins are yet another form of digital currency. The difference is that, instead of keeping it in bank accounts, bitcoins are a decentralized system where all activities are stored as chains of transactions. The whole free bitcoin process is a bit tedious to grasp at first since we are so well acquainted with the current system. But this figment of the invention by the anonymous Satoshi Nakamoto has profound impacts on all financial sectors. Through this article, I hope to give a basic idea and answer the whats and whys of the topic.
Are bitcoins minted similarly as that of regular money? Well, not really. No single person is manufacturing them. There are no fixed systems for minting the bitcoins. Every computer can be used to create coins. Yes, you can just sit down with your computer and generate free money! But here comes the catch. Mining freebitcoin is an onus and currently requires greater power than a CPU or GPU.
So why do we need bitcoins?
- Well, it enables transactions without approval from a central authority, making it faster.
- There are no banking fees.
- The cost of maintaining resources is fairly low.
- Eliminates the need for middlemen, doing away with the commissions.
- Energy effective as the power required by the mining computers would be less than maintaining servers and computer banks.
- Lack of a governing body would enable anybody and everybody to make and transact money without authorization.
- Due to the increasing difficulty in problem-solving, the number of bitcoins would become fixed after a certain period.
- Not many agencies that accept this mode of transaction.
- The value of each coin is fluctuation depending on market value.
Owing to it’s growing popularity, whether we like it or not, the time is closing in where the managerial units would have to deal with it heads on.