What are Bitcoins?
Bitcoins are a global cryptocurrency or digital payment .They are safe, anonymous and fully decentralized. They are not controlled or regulated by government or any authority unlike our traditional currencies. Also, their flow is determined by demand supply factors in the market.
Are they here to stay?
Bitcoins were developed in 2008 but didn’t receive much recognition up until 2013 after merchants such as WordPress and Microsoft began accepting them as a mode of payment. Presently giants such as Subway, Wikipedia, Reddit and many more accept it as a mode of payment.There is a risk factor involved with Bitcoins that people want to stay away from. The global Bitcoin market stands at $14.5 billion at the moment with a whole array of uncertainties linked with it. After an exchange-trade fund by the Winklevoss Bitcoin Trust in the US denied Bitcoins, 35% fluctuations were seen in its prices. One of chief uses for Bitcoins presently is as a store of value with people largely buying bitcoins for speculation.
An enormous amount of Bitcoins are made in China as they’re cheaper to produce there just like everything. For mining bitcoins supercomputers are required on which the complex maths problems are solved. These supercomputers require a whole lot of electricity to work and china’s average electricity prices are lower than most of the countries making it the Home for 80% of the Bitoins minted.Recently China’s Cryptocurrency Crackdown led to Bitcoins prices plunging about 13 percent after one of the biggest exchanges in China said it will shut down its operation.
R. Gandhi, The Deputy Governor of the Reserve Bank of India, also addressed Bitcoins in a conference and stated that Bitcoin has value and is eliminating currency. He expressed that Bitcoins have acquired value i.e., They are being used for settling varieties of economic transactions but they are largely being used for investment and storing purposes and hence the currency is being eliminated. He also conveyed “that the initially adventurists and risk seekers are the ones to use it and the minute the general public gets in, the risk avoiders get in, who don’t confide in such currencies until full Confidence and acceptance is attached to it and that comes only when an authority endorses it.
Bitcoins future is very volatile just like it value. It seems to be a 21st century prototype of gold minus the storage difficulty. There is no certainty attached with the currency but most agree that the future with this currency is bright. As of 2017, we’re still far from Bitcoin, or any other cryptocurrency initiative, being officially recognized by a state government as a preferred mode of currency.