Why Bitcoin?

paper money is going away.

 Today, bitcoin is one of the most trending topics on search engines and social media, as investors attempt to keep up with its often dizzying see-sawing in the price – with the coin surging to nearly ₹30 lakh. 

The question arises why do we need a different currency when we have fiat money that is a promise by the Central bank of a country i.e., RBI in India case? There are certain challenges that are visible in how fiat money works. Firstly, it is centralized and that means you don't have the control or you don't have the control over what the bank is doing with your money. All that you know is that you have the money but how is that money being used you don't have that control because that is a right of your bank, and not yours. Secondly, if the government wants to demonetize this money at some point, they can we all know what happened in demonetization back in 2016, the government said that we are demonetizing 500- and 1000-rupee notes. And you don't have control over that. The government can void this value anytime. All the ledger details accounting system everything is maintained by the bank which gives them unnecessary and very high power over your money. 

And that's why BITCOIN 

The global economy is inevitably moving towards a digital eco-system. From investment to money transfer, everything is going paperless. The newest and most promising addition to the digital payment sector is cryptocurrency. When cryptocurrency is created, all confirmed transactions are stored in a public ledger. All identities of coin owners are encrypted to ensure the legitimacy of record keeping. This public ledger is also referred to as a “transaction blockchain”. Blockchain technology ensures secure digital transactions through encryption and “smart contracts” that make the entity virtually unhackable and void of fraud.

A currency that nobody owns it's not centralized. It is decentralized and it is transparent. You are the only one who controls the money you are the only one who knows who you gave it to why how and when, and nobody owns it centrally. A man called Satoshi Nakamoto had written a research paper back in October 2008. No one knows who is Satoshi Nakamoto, where does he lives is even real or somebody as use an alias to write a paper. But he was the first one to explain Bitcoin Concept which would be decentralized fully and how will it work. when you make the transaction, the transaction gets stored in thousands of computers around the world at the same time which means that there is no central authority who has the record of that transaction. Thousands of computers in the world record that transaction in real-time, who made the transaction which is you and your address no one else would know.  Anyone can access any transaction at any point of time they can't do anything to it they can't change it they can't delete it or edited but they can see it when they see it.  They don't know who is it or who has it's been transferred. the transaction is blocked forever and ever.

And now the question why is bitcoin so heavily priced this is because of the reason that bitcoins are limited. Bitcoin is only 21 million in number, meaning at any point of time there will always the only 21 million Bitcoin in the world, Gold has some value because it is a rare metal and the supply of gold is limited in the world, same is with bitcoin the total supply in the protocol is pre-decided, the good news is that Bitcoin can be divided into very small parts since it is a digital currency so you can transfer someone 0.000004782 Bitcoin. This means 21 million is a limited number and it can be divided into smaller parts. The price of crypto completely depends on market forces, which is the interaction between demand and supply forces. If at some point if bitcoin as a currency becomes something that is world used frequently, used at scale. Then its value will increase just like you observe daily that the price of US dollars fluctuates at some point it was for 50 rupees and now it is for 75 rupees. 

In the same way, Bitcoin also keep changing but because 

 1. It is limited it will never go beyond that number.  

2. Speculation. it means that people think that its value will increase significantly in the future it is not like right now a lot of people are using Bitcoin 

It really does need to be taken into account that a crypto is a form of currency that has been in existence for approximately only 10 years. It isn’t gold and it isn’t fiat. This is a brand new technology that has already illustrated its ability to fundamentally disrupt the global financial system. But it isn’t perfect by any stretch. 

Crypto, or digital, or virtual currencies have created a paradigm shift in the way we look at money. The way we look at potentially buying it. The way we look at potentially spending it.