Bitcoin is a cryptocurrency. It was developed in 2008. It is not under any central government or any banking authority. Secure financial transactions are managed under its system. The persons who are involved in these transactions will be kept anonymous. There is no involvement of a third party here.
The main feature that drove people towards bitcoin is its decentralized system. As it is not under any government regulators, political and financial instabilities do not affect bitcoin’s value. Butglobal scenario involves the amount of paper money. The cost of the traditional currency can increase or decrease when a banking authority chooses to make more paper currency. Since BTC is digital money and produces only a limited currency, we can expect that bitcoin won’t be subjected to devaluation.
Is bitcoin a secure currency
Bitcoin is backed with blockchain technology. Bitcoin is encrypted too. As it is encrypted, the personal details of all users will be hidden. All dealings of bitcoin are transparent, and transactions are public. So, cheat and fraud can be avoided. Once you purchase or sell a bitcoin, the transaction cannot be reversed. The servers of bitcoin are all around the world, and they are keeping records of all the transactions. Thus, it prevents hacking. If a person hacks a server, other nodes will stop it.
But there are many security concerns related to Bitcoins. Vulnerable wallets are one among them. They are prone to theft and hacking. In 2014, a cyber attack was launched against Mt. Gox, a major Bitcoin exchange. After that attack, Mt. Gox has applied for bankruptcy. Bitcoin exchanges are also prone to DDoS attacks. A 51 % attack is also a threat to bitcoin. If a mining pool can manage over 50% of mining power, it will become a bitcoin concern. Creating a selfish collection is also a security concern. From websites like euroweeklynews.com, we get more information about the security issues of bitcoin.
Debates surrounding bitcoin
Who is the founder of bitcoin is a mystery. Its founders are collectively known by the name Satoshi Nakamoto. The real identity of unknown to the world. In 2016, Craig Wright, an Australian entrepreneur, claimed that he is the founder of bitcoin. Another main controversy is that, since bitcoin is decentralized, it will attract criminals. Their main aim is to evade tax regulating authorities.
Various government agencies have made rules against cryptocurrency. The Indian Government is considering banning cryptocurrency. The finance ministry of India has started consultations with related agencies. In 2014, the Central Bank of South Africa declared that cryptocurrency has no legality. But the European Union recognized bitcoin as a decentralized digital currency. Associations like G7 has issued a statement related to cryptocurrency. The information is that digital payment services that work by funding from anonymous persons may risk terrorist financing. This will become a challenge tonations in terrorist funding regulation.
Bitcoin in India
In 2016, DDoS attackers targeted a Mysuru based IT company. They asked bitcoin in return to restore the computer systems of the company. After RBI issued a circular highlighting the risks related to virtual currencies, India s largest bitcoin trading firm, BuySellBit, has stopped its activities. Initially, no traders were ready to do BTC transactions. But now variousorganizations in India recognize Bitcoins. There are many risks surrounding Bitcoins, such as money laundering. We should be beware of that.
Many economists think that the Indian Government should not ban bitcoin permanently. Because we should know about the positive impact bitcoin can create in the economy. The Government’s main issue is that bitcoin is not under any banking system, so the Government cannot regulate its market.
Bitcoin is working under a technology called a blockchain. Each transaction is stored and recorded ina ledger. Many security concerns can be averted by using blockchain technology.
Government regulation affects the price of bitcoin. Companies like Morgan Stanley thinks that government regulation is a factor that influences Bitcoin prices. The United States is considering a bitcoin regulation, and China has banned initial offerings where digital currenciesare used. These actions make a more significant impact on the price of BTC. The effect of regulations on bitcoin is limited but is significant because it affects the price of Bitcoins.