The future of cryptocurrency and bitcoin
Many ask, what is The future of cryptocurrency and bitcoin? This coin has no real existence. It is a computer software. In many of the pictures, the English letter 'B' is seen in large gold coins, which is imaginary. Even such souvenirs are available. That's not a bitcoin.
If one considers Bitcoin to be a very risky ‘stock’ or ‘share’ that could turn rich into rich today, almost entirely of manipulation and forgery, then he cannot be blamed at all. Since such incidents are happening, the news is still being spread and people are spreading rumors. The risk is not wrong, the assumption of rich / poor reciprocity is also correct.
Those who are in favor of bitcoin are also saying that. But none of this is ‘bitcoin’, it’s what’s going on with bitcoins. Bitcoin is one of the first inventions based on blockchain technology, the first cryptocurrency based on it. Bitcoin is a secure software. Experts agree that the blockchain technology at the core of bitcoin is groundbreaking, highly reliable. Banks, financial institutions, they should also use 'block chain' technology.
The sudden explosion of its incredible value has shaken everyone's attention recently. No one can play it anymore. Bitcoin futures are allowed to be sold on the Chicago Exchange. Many well-known organizations, including Merrill Lynch and Bank of America, say it's not a 'bubble'.
There are reasons behind this price increase. There is a reason, of course, because it is very deep. As much as not economic, its equal or more technical and scientific. These ‘cryptocurrencies’ have the power to change society and the economy. Blockchain has already been adopted as a new potential technology. There is a lot of research and discussion going on about which cases it can contribute to.
Efforts to invent cryptocurrencies have been going on for a long time. Researchers learned in the eighties that it was possible to invent such a coin from cryptography. But a few problems they failed to solve. In 2008, an unknown researcher sent a research paper to an internet forum to solve all these problems.
Surprisingly his solution comes in handy. His solution is called "block-chain". Based on that blockchain, the first cryptocurrency was invented, called Bitcoin. Because of its skyrocketing price, and its gradual rise, it is now considered by most people to be an asset rather than a currency.
Since then many more cryptocurrencies have been invented, such as Ethereum, Ripple, Light Coin, etc. But Bitcoin is ahead of others because it is the first cryptocurrency, and because many researchers are able to attract investor attention.
However, another cryptocurrency could suddenly go ahead and completely bankrupt Bitcoin, which is a big investment risk. No one can say which one will go ahead. There are now hundreds of cryptocurrencies on the market, and many more will be imported. So it is not easy to be skeptical about investing.
Many ask, what does this coin look like? This coin has no real existence. It is a computer software. In many of the pictures, the English letter 'B' is seen in large gold coins, which is imaginary. Even such souvenirs are available. That's not a bitcoin.
Do you need bitcoins or cryptocurrencies?
As society and life move forward, so do economic instruments. The currency thing has evolved a lot. It has changed from a coin to a paper coin. Advanced technology is being used to prevent counterfeiting.
Then came credit cards, debit cards. With that, economic exchange became more and easier. These can be called "digital currencies". But the most unexpected progress has been made by "cryptocurrency". Let's highlight some of its characters.
- 1. It has no government or institution. The world's largest population is circulating the currency through a kind of ultra-secure network. No one is a policy maker, everyone is equal, just a node in the network.
- This coin will go from buyer to seller directly, without any intermediary, in a safe and secure way. There is no central form of this monetary system, there has been complete decentralization. This is called a direct "buyer-seller" (peer-to-peer) network.
- 2. As a result, anyone will be able to buy anything from Ghana to China in an instant. No matter the bank, no matter the exchange rate. There is no middle ground, that is the design of this coin.
- 3. This currency can move from one country to another at an accelerated pace. Bitcoin takes a maximum of ten minutes. But some other ‘cryptocurrencies’ could change hands in less time. But the current wire transfer takes a few days to go from one country to another.
- 4. The fee for sending this coin from one person to another is just a name. It does not depend on the amount of money sent again. The fee for sending one bit coin is the fee for sending one lakh bit coins. Compared to the current money transfer fee, here too, "cryptocurrency" is far ahead in terms of convenience.
- 5. Crypto-currency transactions cannot be forged. Once transferred, it cannot be reversed or changed in any way. In different countries of the world, it is being recorded on thousands of machines. This transaction is unchangeable.
. ‘Cryptocurrency’ has no inflation. The number of these coins is pre-determined, so it cannot be printed more like money. Different countries are trying to increase their international purchasing power by over-printing their currencies, both openly and secretly, and as a result of which the ‘currency war’ (currency war) is starting, it is absolutely impossible in ‘crypto currency’. For example, the maximum number of bitcoins is set at 2.1 crore.
Why is it so expensive?
The reasons for the increase in price are as follows:
- It is thought that in the near future everyone around the world will use ‘crypto-currency’. This is to say that if someone had said twenty years ago that everyone around the world would use a mobile phone, it might not have seemed very credible then. Many strongly believe that this is exactly what is happening here.
- The number of bitcoins is limited. So even if the price of a bitcoin is much higher, it is not surprising. Because all the resources in the world have to be bought with that limited bitcoin, so the price of each one will be skyrocketing.
Is it possible to buy something with bitcoin?
Many things can be bought with Bitcoin nowadays. For example, any product from Overstock.com can be bought through Bitcoin. Many more such businesses are now selling their products using Bitcoin as a currency.
The idea is that just as credit cards are being used instead of money now, so will Bitcoin or some other ‘symbolic currency’ be used instead of money and credit cards in the future.
Why is the price so volatile?
Its price goes up for all the above possibilities. Again, if any fraud is caught or caught, the price goes down. Again, if a country declares it illegal beforehand, or if a country takes a position in favor of this currency, its price goes up or down a lot at the moment. Price increase-decrease is a lot of human psychological matter. Then there is the position of other ‘symbolic currencies’.
If Ethereum or Ripple is actually the currency of the future, then their price will go up and Bitcoin will go down. For all these reasons, its price suddenly decreases and then rises suddenly.
Among them may be the lucrative crocodile-investors who can suddenly increase the price by investing a lot, and then suddenly take all the money and bring down the price. All in all, its price may rise or fall at an alarming rate, which no one can predict.
Who is cheating on it?
No one is directly cheating with bitcoin or cryptocurrency. The ‘block-chain’, which is based on it, is considered to be the strongest and most secure. The fraud is with the Bitcoin buyer's account. The intermediaries that are helping to buy and sell Bitcoin are the ones who commit fraud.
People are being warned. More reliable organizations are coming. Passwords and identification methods are becoming more secure, and must be. Therefore, it is not entirely correct to say that some news is destroying or will destroy Bitcoin or cryptocurrency. Its foundation is quite strong.
What is bitcoin mining?
Bitcoin extraction (mining) is a lot like extracting minerals. There are similarities on all sides, but there are no real mines. There are no real minerals. However, it can be extracted with a computer or similar machine. The mills are in this place, it takes time to extract minerals, it takes hard work, it takes fuel.
Sometimes more material can be found in a short time, sometimes nothing can be found from the mine even after swallowing. The harder and rarer it will be, and the more enticing it will be to man, the higher the price of the substance will be. Such as gold or diamonds. They are rare, and they cost so much because everyone wants them.
Bitcoin has been made rare through mathematical formulas. It takes a lot of fuel, a lot of hard work to extract it. Even then one cannot swear that a bitcoin will be found. The word "hard work" is synonymous with the use of the computer's "CPU" or "GPU".
The fuel can be matched with the cost of electricity. Bitcoin's algorithm (‘proof of work’) is done in such a way that day by day it will be difficult to ‘extract’ it.
What is a blockchain?
Blockchain is a technology based on the invention of Bitcoin and other cryptocurrencies. Every transaction is in this block chain, it is called public ledger, in Bengali it stands for 'open ledger'.
It is open to everyone. In order for a transaction to mature into an open ledger, most of the nodes in this blockchain network (computers or special types of computer machines) must agree. There is also an algorithm (Consensus Algorithm) to agree on this.
Finally a complex mathematical problem has to be solved, which is called ‘proof of work’. Those who do this are called 'minor'. The first one who can solve it is the winner, he will get bitcoin as a prize.
Before it was 25 bitcoins, now it is 12.5 bitcoins. After a while it will be halved, which is also a protocol of block-chain technology. Minors are voting to agree again. Numerous ‘minors’ are working. That's why cryptocurrency transactions can't be fraudulent or wrong.
Anyone in the world who buys a reliable computer or machine with special power can join this network and become a minor, even earning some money. The potential of this blockchain technology is endless. For example, if blockchain technology is used in home and land ownership, it will be impossible to forge ownership or deed. Because it is in the 'open ledger', everyone will know who owns which place.
Curse of crypto-currency
All groundbreaking discoveries have some curse. It is also present in cryptocurrencies. Although every transaction here is recorded in the block-chain, there is no name or address of the person or organization. There is only one symbolic key (public key) from which it is not possible to extract that person or organization in any way.
The thing is, each person's identity is with a single number, so in the wallet number 111 (crypto-currency account is called wallet) where the bitcoin came from, where he sent it, everything can be seen. It's in the open ledger, so anyone can see it, but no one will know who the man behind this 111 number is.
Then huge benefits for criminals. They will be able to transact money from behind the scenes. Then there is no way to catch anyone sending money to a terrorist organization. However, it is possible to formulate a new block-chain protocol where the identity can be known in addition to the public key.
Government and Bitcoin
Seven countries have declared it illegal to use Bitcoin as a currency, or to buy or sell it in any other way. Bangladesh is one of them. Other countries are Nepal, Ecuador, Bolivia, Morocco, Algeria and Kyrgyzstan.
Like Uber, Lift, and other new innovations, it has put governments in a difficult position in terms of policy. However, the work of formulating policies on its income tax structure, inheritance, etc. is in full swing.
But despite the government's concerns, there is no shortage of enthusiasm among the masses for this new technology. Miners in countries around the world, especially in the US, China, Canada, Australia, Nigeria, Brazil, Israel, England, Switzerland, Korea and Singapore, are enthusiastically joining the Bitcoin network, creating new potential companies based on blockchain technology.
What is its future?
Cryptocurrency is thought to be the currency of the future. Information technology experts have already started working on the blockchain at its core. Just as the Internet changed the world, so will mobile phones spread from house to house, from village to village. But which coin? Bitcoin? Ripple? Lightcoin? Ethereum? Hard to say.
No one knows. But one or the other crypto-currency will sit on the seat. The dollar will rise slowly, the euro will rise, the money will rise one day. People will not go to the bank, everyone will have a ‘crypto currency’ wallet, on a computer or mobile.
Many people say that this account does not have to be compared to just a bank account. Each of these is a bank in itself. The rules and regulations of the bank, the fees, all will be determined by that person. And this currency does not have the borders of the country. So the world will take on a new form.