Category: What is Bitcoin?

What’s is a Bitcoin hard fork?

bitcoin hard fork

 

Bitcoin has undergone numerous metamorphoses since its introduction to the public in 2009. These changes have of course aroused various debates in the digital currency circle with recent talks about impeding Bitcoin hard fork taking center stage.

If memory would serve me right, Ethereum, a recently developed digital currency, underwent a hard fork in late 2016 that saw it split into two distinct currencies run on different software with distinct rules. Now of all the changes, the Bitcoin has undergone, this impending Bitcoin hard fork threatens to split the Bitcoin coin into two possible digital currencies.

However, what is a Bitcoin hard fork? According to coinbase.com, “fork” is the possibility of a Bitcoin block chain taking a two-pronged path going forward due to the introduction of new rules or alteration of its network or software that would affect the determination of a valid and invalid transaction. In the case of Bitcoin hard fork, it would entail the introduction of new software with very different set rules. This software, of course, would be incompatible with other previous software. The contention is which rules would be favored and accepted by a majority of users of the network (SeWit or BU).

On the one hand SegWit – Segregated Witness would allow the miners more control of the transactions increasing the block limits whenever necessary and control of the mining fees charged.  On the other hand, BU- Bitcoin Unlimited would make Bitcoin transactions more decentralized with each participant having an input on the charges and changes within the Bitcoin network. Both options appeal to particular parties and present their merits, which make it harder to decide on which path to take.

There is scant know-how related to Bitcoin hard fork, which makes it harder for the digital currency stakeholders and users to decide on which path is most appropriate. This is usually a “hard” decision for the users to make as either decision has its merits. One way to break the impasse is through establishing a threshold of acceptance, which would then help in deciding the path to take if the acceptance rate is reached.  With no clear agreement, it is possible that the Bitcoin would be split into two distinct block chains giving rise to two possible digital currencies.

Bitcoin hard fork is meant to facilitate the rate of transactions, which are hampered by current set rules, and limits while increasing the transaction amounts. However, with a possible split, there is also a chance for the coin to lose half of its value, we can only wait to see the results. It is also worth mentioning, that a lot of bagholders, will be lined up to withdraw their bitcoin to cash.

Bitcoin Price Prediction in 2017

bitcoin prediction in 2017

 

Since the inception of the Bitcoin in the early 2009, it has seen a tremendous increase in price over a relatively shorter period unlike some of its digital currencies competitors. From the lows of a fraction of a dollar to the current price of $1000 plus, the Bitcoin price 2017 is predicted to close at as high as $3000 by end of year. If we take a more recent case of 2016 which apart from the price having been at about $420 at the start of the year, by mid-year it had risen to almost $650. Still, despite being halved, it managed to close the year at almost $970.

Currently, at $1050, Bitcoin price in 2017 has experienced turbulence starting at the highs at about $ 980, getting to the lows of about $846 and highs of $ 1280. With these figures, the Bitcoin price in this year seems to set for newer records. The factors that contribute to this optimism include the following:

  • There is the impending hard fork situation, which is likely to favor SegWit. If this happens then, user base and some transactions are likely to increase. The uptake of Bitcoin as a legit financial instrument and as an acceptable mode of payment has also increased leading to many countries and businesses allowing its use. As evidenced from previous years, these factors are likely to boost the Bitcoin price 2017 to new highs.
  • Businesses trading in Bitcoin have become legit, licensed and open with big companies like IBM, Dell and Microsoft now embracing Bitcoin. This has legitimized the Bitcoin making more people willing and ready to deal and invest in Bitcoin. With higher demand, the price is likely to go higher.
  • Portability, liquidity, and security that Bitcoin provides to investors have also increased the appetite for people to own Bitcoin. This has led to increasing demand that will see prices surge as more and more people take up the Bitcoin, and as a result less people are selling bitcoin for cash now. Countries like China, which has tight financial restrictions and controls on its capital outflows have led to increasing in people who are taking up the Bitcoin as an alternative to hard currency. As these continue, Bitcoin price 2027 is likely to increase.
  • The world financial and economic stability is always uncertain, and since it has pegged to mostly gold whose price keep fluctuating, many investors may opt for digital currencies.  The Recent acceptance of Bitcoin into the mainstream into places like stock purchases with clear regulations has and will lead to higher uptake and legitimization of the Bitcoin, which will eventually raise Bitcoin price 2017.

Bitcoin is Now Worth More Than Gold

bitcoin is worth more than gold
The point we always thought will come to has finally arrived. Bitcoin now is worth more than gold. Its new goal of $1,268 has made it more valuable than an ounce of gold. Although it is attributed to a down on the price of gold plus an up in the Bitcoin price, this crypto currency has experienced quite an increase in price in the last year, since it has gone up more than 100%
The crypto currency has finally reached a new mark where anything in the legal world can compete with it. As the currency started to gain popularity, so did its price started a constant escalation adding more and more value to the crypto currency.

The current currency market is starting to trust more and more their finances with this digital option. This wasn’t the case years ago, but now, given the fact that violating Bitcoin security could cost a lot more than the currency itself, which makes having these coins much more attractive.
In addition, the current state of politics in the world is making easier to choose to exchange any other currency you might have for this secure coin. It has only gone up since the news told about the Brexit outcome and the Trump victory in the US but more recently, restrictions in countries like China, Yemen, and Venezuela have made it surge its value.

Even though Bitcoin has not proven itself as a currency that can reach higher popularity outside the digital world, more and more businesses are taking chances online by accepting it as the newcomer it is. Now, at the light of this news, Bitcoin is starting to cement itself as a trustable, able to spread form of money.

What is expected of this currency shortly is yet to be determined but one thing is sure, its rise can only mean that it could make itself as a trustable form of savings believing that it could stay in the status it has today.
If this digital coin only rises to new heights, there are many things to be expected from it. Investment isn’t going to decrease for this new form of money, and more people see its advantages.

Why is bitcoin very volatile?

bitcoin is volatile
Bitcoin is an innovative payment network which was invented by satoshi nakamoto. It is also an advanced cryptocurrency in today’s market. However, there are some studies show that bitcoin is so volatile. Based on the currency method, the price fluctuation is more volatile than any other currencies such as USD, GBP, AUD, JPY, etc. Aside from that, bitcoin is generally an asset class and it is not yet accepted around the world.
Many investors are afraid to invest their money in bitcoin currency because of the following reasons. Firstly, the prices or exchange of bitcoins are unpredictable and still volatile. Second, the bitcoin is vulnerable for breaches or other scam sites and lastly, the foreign bitcoin exchange has high inflation in the market. There is nothing wrong with bitcoin. It is just the process on how we can manipulate and prove it to the market itself. I think that bitcoin has a capacity to change the world of currency.

The main reason is that we are very meticulous and we don’t know how to understand the essence of bitcoin in the past. Therefore, the consequences are very high. As time goes by, the variety of opportunities will do exist and many people will prefer to convert their money to bitcoin. Bitcoins are created because I think it will make an impact to the foreign currencies. If you are not yet convinced then, read the following reasons why is bitcoin volatile?

4 reasons why bitcoin is volatile:

The adoption rate is really bad – There are some reports that the bankruptcy is one of the major issues in the U.S. That’s why they rejected the use of bitcoins in the market.
Little option value compared to other currencies – Many investors are afraid to invest more due to the floating status of their money in the bitcoin bank.
The demand of bitcoin is very high – Many people are buying bitcoins as their money. According to the statistics, bitcoin has been widely used in the market in the past 2 years and it’s still increasing by the end of 2030.
The market for bitcoin is very small and thinly traded assets – The supply of bitcoins are limited and unpredictable and also many inexperienced traders are not knowledgeable in bitcoin which they tend to panic.

We all know that bitcoin is not yet accepted globally. However, it should be noted that the main problem is the volatility of it. Considering the fact that many investors are afraid to try and invest to the cryptocurrency of bitcoin. Aside from that, the market falls every month so that the prices are fluctuating. We have to be mindful that our economy is continuously rising and there are a lot of inventions that will make our life easier.

So, there is nothing wrong with that, as long as we are responsible with our innovations. Moreover, bitcoin is fast pacing and the productivity of its market is spontaneously growing. Meanwhile, it is more of an analysis on how we can adopt the currency of bitcoin and the sudden exchange of bitcoin will increase in the future. For those of you that have BTC and are just too scared to hold it, then we suggest you withdraw Bitcoin to cash.

What influences Bitcoin price?

what influence bitcoin price
Most people around the world do not have internet access, or if they do, they do not know much of it. The ones who do have encountered a monetary phenomenon called Bitcoin, which is no other than an online currency that can be used only in that context, the web. Being a form of electronic money does bring its benefits, but it also can lead to several rough patches in the transactions, one being the price exchange for that currency.

In recent times, Bitcoin has experienced an up in its price. It has ranged from 230$ to up to a 1100$ in less time than thought which has left most people wondering what influences the Bitcoin price to make it so expensive nowadays.

To establish the bitcoin price, one must think beyond the terminology. One thing is the monetary price of the bitcoin, meaning that certain people would give x amount of their currency for x amount of bitcoins and another thing is the value of the bitcoin which why people buy those bitcoins for that amount of money, like an auction. After saying this, most people might think bitcoin is not very valuable since its only use is online. If you consider the fact that it is a cryptocurrency, meaning that the high cost protects it it would take to break its security and no person, digital or physical could accelerate its production or use it illegally or abuse it; just by that it could give a second thought to consider its market value.

The security of Bitcoin makes it a somewhat stable currency in times of macroeconomic uncertainty and political instability. Individuals, companies, and nations are taking care of their money and trusting the security behind the cryptocurrency. All of that have made bitcoin price go up and up in recent times. It might raise the price even more. Although it might seem like a financial risk, economic experts have given a second chance to the digital cryptocurrency, and many believe that it could be the future world currency.

Bitcoin price could dictate the value of fiduciary money shortly. The Bitcoin price at the beginning of 2017 surpassed the 1000$ mark and wouldn’t go down significantly. Current news like the Brexit outcome and Donald Trump’s victory in the United States led to more individuals trusting the bitcoin to save their money in a secure way.

With all of these reasons, the bitcoin price is only going to cement its status as an actual unfiduciary currency and its value will only go up. The only way this cryptocurrency could lose its value is something like the disappearance of the internet in the world or a global stability like no other. In any case, bitcoins are a pretty secure way to make sure your money only goes up and can be such a great investment that might pay out big time.

Bitcoin: Cons and Pros

pros cons of bitcoin

 

Many people are probably hearing of bitcoins for the first time, or few of the ones that have heard of it, do not know what it is all about. Nevertheless, a brief introduction is that Bitcoin is a digital currency. Bitcoin currency is universal. Therefore, merchants do not have to bother about exchange rates when making purchases with bitcoin.

Many people are going into the bitcoin mining industry, and some still want to, but are confused whether it is worth it. In this article, we will be discussing the advantages and disadvantages of Bitcoin. This will not in any way make decisions for the confused ones but will help ease their decision-making. It will help outline the two sides of the coin, but they will be left to weigh them and decide.

 

Disadvantages of Bitcoin

 

1. Lack of understanding: Many people do not seem to understand how the Bitcoin works and the lack of awareness are not making it easy. Unlike the physical currencies, only a few companies accept bitcoins. In addition, the bitcoin market is somehow confusing, and most people sell and buy bitcoins blindly without knowing its present market worth.

2. Fluctuations in prices: The prices of Bitcoins fluctuate every minute due to its volatility. To use bitcoins, sellers have to be kept up to date on the current price always in order not to cut their profit. Buyers also need to be kept up to date in order not to buy at a high price than its worth.

3. The era of development: Bitcoins are still in its phase of development and requires some more features to increase its effectiveness. It is not as developed as the real currencies. Therefore, it is a close but not a total substitute for it.

4. Darkweb association: Most people mistakenly associate Bitcoins with criminals and fraud, especially after the US government raided the Silkroad markets back in 2013. This really hurts the reputation of this amazing coin and the technology behind it. Many users, investors, traders and businesses use Bitcoin for very legitimate reasons that have nothing to do with anything illegal.

 

Advantages of Bitcoins

 

1. Fewer charges: Banks have been known to extort their customers with various charges while claiming to protect customer’s money. With bitcoins, there are close to null charges during trades.

2. Currency is universal: You do not have to worry about exchange rates when making transactions with bitcoins. It is a universal currency.

3. Saves time: If you are the type of person that hates long time-wasting bank queues and ATM queues, then bitcoin is for you. Bitcoin transactions usually takes only few minutes from the point the user initiate the transfer, which is extremely speedy. You do not have to go to any bank for transactions because the internet is your bank.

4. Privacy: Users can send and receive payments from all over the world without having to give up sensitive information that are usually required by most financial institutions, such as Full Name, DOB, Social Security Number…etc

 

In conclusion, just like every other thing, bitcoins have its advantages and disadvantages. So only you, the user, will decide if Bitcoin is for you.

Risks of Bitcoin

risks of using bitcoin

 

There are many crypto currencies, but bitcoin, which was first created in 2009 is the most popular of them all. Bitcoin is a digital currency that does not require any intermediary (bank) to make transactions between persons. It is experiencing a high growth rate, with different people learning about it. A lot of merchants are beginning to venture into the use of bitcoins, and a lot of bitcoin miners emerge daily.

Although this crypto currency is being used by a lot of people, there still exist back and forth argument on the risks involved in dealing with bitcoins. Bitcoins are also referred to as “digital gold” but there many risks involved in dealing with this gold. Just like how there are risks involved in all businesses, we have the same with bitcoins. These are some of the risks of bitcoins:

1. Volatile in nature: Unlike physical currency, bitcoins do not have a standard worth. The prices of Bitcoins fluctuate due to its high rate of sales. Bitcoin values are capable of falling for up to 50% in a day. People that acquired a large bitcoin will experience a huge loss from this.

2. High theft possibility: Technology is gradually advancing, and there are a lot of tech gurus and hackers in the industry. Since Bitcoin uses the internet, these people are capable of breaking into the bitcoin wallet. If they can breach the Bitcoin wallet security, they can steal a large number of bitcoins. These people do not need to carry a gun and rob a bank. A bitcoin theft worth millions of dollars was recorded in Japan a few years ago.

3. Fraud alerts: The internet is the new marketplace. It is a place where a lot of people have been able to make lots of money by making e-commerce transactions. It has also helped a lot of businesses expand. Although people make legit money from it, it has recorded a lot of fraudulent activities over the years. Bitcoin is an internet based money system. Therefore, fraudsters can also use this to cheat unsuspecting merchants.

4. Irreversibility: This one could be a dual-edged sword. Many people are attracted to Bitcoins due to it’s being irreversible method of payment, that will kill the possibility of chargebacks that can ruin business. However, if you have been a victim to fraud or theft, chances are your Bitcoins are gone for good, due to the same rule.

Briefly, bitcoins have over the years proved a goldmine for many people. However, the risks involved cannot be overlooked when making transactions with bitcoins. The safest haven in all of this is to take necessary precautions when taking risks. These precautions will pave a way to the safest use and avoid any online treat by the hackers.

What is Bitcoin?

what is bitcoin

 

Bitcoin is a decentralized digital cryptocurrency which is not controlled by any entity or government. It was first introduced in 2009 by someone under the name Satoshi Nakamoto, which is more likely a pseudo. The system that Bitcoin works on is a peer to peer, which enables transactions between two users without anyone else’s intervention. These transactions are verified by network nodes and are recorded on the blockchain which is available for the public. Bitcoins is a currency just like other real world currencies, the only difference is that is digital, while fiat is physical in shape of paper for bills and metal for coins.

Bitcoin is created using computers doing very complicated calculations. The process is called mining and the people or computer application generating those Bitcoins are referred to as miners. By discovering network nodes, miners are rewarded Bitcoins. In order for Bitcoin transactions between users to happen, mathematical problems will have to be solved by miners. There are many other digital cryptocurrencies in the market such Litecoin (LTC), Ethereum (ETH), Namecoin (NMC) but Bitcoin (BTC) remains the largest with a market cap of over $16 Billion. Unlike fiat money which is owned by the government and is usually stored in banking institutions, Bitcoin is free of any government regulations and is usually stored in digital wallets. These e-wallets are basically applications or third party websites that can be used to access the funds. They are protected by passwords and sometimes by 2FA which adds an extra form of protection against unauthorized access. You can use these wallets to pay with Bitcoins for services and other stuff like a pizza or cup of coffee, it works just like pulling cash out of your wallet.

The price of Bitcoins is very volatile, that means it keeps going up and down every few minutes. As of today, Bitcoin is worth over $1000. The Bitcoin network which is known as the Blockchain is believed to be unhackable. It is the individual wallets that can be hacked, so users should keep them secure at all times. It is worth noting that Bitcoin comes in a limited quantity, because that is how it was coded. The total number of Bitcoins that will ever exist is 21 million coins, minus all the bitcoins that were lost forever. Lost forever? you might be asking yourself. Well, if you lose your private keys, and don’t have a wallet backup, your Bitcoins will be gone forever. It is estimated that all of Bitcoins will be mined by the year of 2030.

What bitcoin and blockchain offer that no financial institution can afford is the extremely low transaction fees as well as speed for those transactions to take place. Let’s also not forget that Bitcoin transactions are virtually anonymous, which a lots of people that are concerned about their privacy really appreciate.

Many bitcoin experts and analysts believe that Bitcoin prices will be much higher than today’s, when the world adopt the digital currency and becomes mainstream. So only time will tell if  Bitcoin will be the next digital revolution.