The Cryptocurrency Craze: 4 Reasons Bitcoins are a Big Deal
Whether we like it, expect it, or realize it or not, the cryptocurrency craze is real. Day by day, as the value of Bitcoins increase- they are slowly but surely becoming a big deal.
Bitcoins are the initial virtual banking currency that has existed for years and only recently has picked up pace and value. They are created with individual and unique encryptions, making each Bitcoin unique yet able to use in transactions and trades.
As just a type of cryptocurrency, Bitcoins are formed by lines of computer code that hold monetary value and are similar to holding gold nuggets in your pocket. Over the years, individual Bitcoins have increased in monetary value over the years as less are created.
Are they of any value? Is there any hope for Bitcoins as the future of a universal currency?
Without knowing the outlook or trajectory of Bitcoin business, one thing is for sure: They are a big deal.
No government regulation or bank creation
Banks cannot and do not create Bitcoins, making it impossible for any government to actually regulate or control Bitcoin transactions or ownership. There is no bank logging the movement of Bitcoins- making them similar to owning gold that can increase in value, or even cash.
Though for now, governments cannot regulate the usage and ownership of Bitcoins, this is bound to change because of the way in which Bitcoins are being used for contraband trade, money laundering, and hiding assets for criminal transactions and organizations.
In the past, the value of Bitcoins skyrocketed when wealthy criminals bought them in large volumes in order to move and access their “money” in secret without regulation.
However, without regulation, it is possible to lose out as a miner or investor if you are not careful.
Bitcoins completely bypass banks
As Bitcoins are transferred from person to person, within networks of individuals between wallets, there is no mmiddleman or bank to take for themselves any portion of your money.
Without the usage of banks, there is no possibility of Bitcoins possessed for being seized, frozen, or audited by both banks and therefore law enforcement. There can be no spending or withdrawal limits imposed on Bitcoins as a piece of code.
Though this is threatening to banks, it only increases the power to the buyer and seller using the Bitcoins.
Bitcoins change how we store and spend our wealth
Before the advent of cash currencies, there was always the trading of goods and services or goods for services, and then the value of gold with goods and services. In a way, Bitcoins and cryptocurrency is the return to more hard, tangible wealth that can increase in value and be bought or sold as a currency.
Bitcoins are designed to make people less dependent on banks- who mint money and print our “virtual money” made while working, and charging us for middleman services. When in need of more currency, banks simple conjure more digits to their electronic ledgers, allowing the system to be used and abused because paper money is essentially a license to spend, whether there is a value attached to it or not.
Subsequently, Bitcoins bring the control back to the owner of the Bitocin, bringing ownership and true control of personal wealth back in the hands of each individual. Rather than depending on banks and their promises on value, packages of data that are in the form of Bitcoins have value in themselves, and are ours without any middle man to store or handle them.
Bitcoin transations are irreversible.
Unlike convential payment methods like using a credit card, check, or cash- the benefit of being insured by the bank in reversing a transaction exists. However, with the Bitcoin, every time it is moved from one wallet to another, the transation is final.
Additionally, there are no insurance protections for a Bitcoin wallet. If a wallet is lost or the password is forgotten, the wallet’s contents are gone forever.
In an ever-changing world ever-moving faster and more surely towards dependency on technology and digitized ways of life, it is quite clear that the advent of Bitcoins and other cryptocurrencies can usher in a new era of a sort of digital economies.