Bitcoins: Growth and future

Experts are divided over the future of Bitcoin. A man like Warren Buffett sees the future of Bitcoin as bleak, while Bill Gates sees the future of Bitcoin as bright. Many experts use Bitcoin for savings and advise others to do the same. Many artists have also invested money in Bitcoin. Although there are differences of opinion about the future of Bitcoin, it is a fact that governmental bodies in many countries are seriously considering cryptocurrency.

After Satoshi introduced the concept of Bitcoin in 2008, more and more people started using Bitcoins. It was launched in January 2009. Ten months later, on October 5, 2009, the dollar was valued at 1,309.03 bitcoins.

The first transaction to buy something in exchange for Bitcoins took place on May 22, 2010. On this day, a Florida programmer named Lanzio Hanez bought 2 pizzas for 10,000 bitcoins! Today, the value of so many bitcoins would be around ten crore dollars or seven hundred crore rupees. Since then, May 22 has been celebrated as Bitcoin Pizza Day.

On February 9, 2011, for the first time, the price of Bitcoin rose to one dollar. After that, the price of Bitcoin continued to rise. There were some ups and downs; But the price of Bitcoin has never been lower than it was in the beginning. During 2013, the price of Bitcoin fell sharply. A website called ‘Silk Road’ used to accept payments in Bitcoins. All illegal items like drugs, weapons etc. are being sold on this website.

These types of websites are known as part of the Dark Web. Bitcoin was useful here as all transactions were illegal; But in 2013, the police cracked down on the website owners and somehow blocked wallets containing huge amounts of bitcoins.

All of this has had an impact on the price of Bitcoin; However, the price of Bitcoin was much higher than in 2009. For example, in October 2009, the price of Bitcoin was 1 for 1309 bitcoins. It went up to be 1,240 per bitcoin in December 2013. Bitcoin has seen a lot of ups and downs since then. In 2017, the price of Bitcoin went up to twenty thousand dollars and by the end of the year it dropped to thirteen thousand dollars. After that, it gradually decreased to around ten thousand dollars in July 2019.

Why should Bitcoin be so popular without the support of any government or central bank?

There are a few reasons for this. The first and foremost reason is the convenience of being anonymous in any transaction. Like blockchain technology, you only get a wallet address (your wallet address) for trading Bitcoins. From this address you can send Bitcoins to others or other people can send Bitcoins to you. All your transactions can be viewed by all people. But people only see the address of the wallet. No one knows who owns this wallet. This is the reason why churches that use bitcoins can remain anonymous.

• These bitcoins were used by small companies and illegal groups in the past; But over time, many merchants began accepting payments in Bitcoins.
• No matter how much the price of Bitcoin fluctuates, Bitcoin is considered to be as stable as any other currency in the world. New Bitcoins cannot come after a certain limit (2.1 crore Bitcoins).
• Unlike paper notes, this currency cannot be printed in the required quantity. Conversely, people whose wallets are deleted or unavailable for any reason, have their Bitcoins permanently destroyed.
• Bitcoin is considered to be the safest currency as block-chain technology has been used. The concepts of cryptography and distributed lasers have strengthened the security of the Bitcoin currency.

However, the hackers demonstrated their capability by pushing this supposedly secure system.

In 2014, Bitcoins were stolen from Japanese investors without their knowledge. It remains a mystery as to which account was transferred from the investor’s account. The Japanese stock market collapsed as a result of this strange phenomenon. This was the first time such a large theft had taken place.

Some have even become bitcoin billionaires by investing in bitcoin. The WinkleVoss brothers Cameron and Tyler, who accused Mark Zuckerberg of stealing their Facebook idea, bought bitcoins worth १ 11 million in 2013.

By the year 2017, the price of these bitcoins increased and these brothers became bitcoin billionaires. Eric Finmin invested 1,000 in Bitcoin and gave it to his grandmother. He was only 12 years old then; But due to the rising prices of Bitcoin, he became a billionaire by the time he was 19 years old.

Experts are divided over the future of Bitcoin. A man like Warren Buffett sees the future of Bitcoin as bleak, while Bill Gates sees the future of Bitcoin as bright. Many experts use Bitcoin for savings and advise others to do the same. Many artists have also invested money in Bitcoin.

Although there are differences of opinion about the future of Bitcoin, it is a fact that governmental bodies in many countries are seriously considering cryptocurrency. The UAE government has announced that it will launch a cryptocurrency called MCash based on blockchain technology. This currency will be accepted for government and non-government transactions.

Citizens of the United Arab Emirates can do all transactions in this currency by installing an application called ‘Amvolet’ in their smartphones. This currency will be used to transfer money from purchasing everyday items. Contactless payments can also be made using NFC in smartphones. Efforts are underway to make Dubai the world’s first blockchain city.

Although Bitcoin and other cryptocurrencies are banned in India, according to a report, the Indian government is considering creating a new cryptocurrency of its own!

In July 2017, hackers hacked a bitcoin exchange called Bithamb. Bitcoin transactions cannot be refunded. Dell, Microsoft and Expedia accept Bitcoin. If traded in Bitcoins, VAT is discounted in Belgium. Bitcoin Cash, Bitcoin XT, Bitcoin Classic, Bitcoin Unlimited and Bitcoin Gold are the currencies of Bitcoin.

The FBI has the largest wallet for Bitcoin.

As bitcoins became popular, ‘Altcoins’, an alternative cryptocurrency, began to appear on the market. Litecoin, launched in 2011, is one of them. This currency, which is very similar to Bitcoin, has a faster blockchain rate than Bitcoin. Therefore, its popularity in the cryptocurrency market is increasing day by day. One such popular currency is the Ethereum in 2015.

In Ethereum, the user can create their own program in their own language with the help of ‘Smart Contracts’ software. So without the help of a third party, the user can create his own program and transact. Similarly, around two thousand cryptocurrencies like ZCash, Dash, Ripple, Monero, Bitcoin Cash, Neo, Cardano are operating in the market today. About a thousand of these currencies become ‘dead’ over time, while some new markets emerge.

Recently, Facebook announced the cryptocurrency ‘Libra’. Given Facebook’s popularity so far (the number of Facebook users today is in the nearly two and a half billion households) and the growing craze for cryptocurrencies, Libra’s future is no doubt very bright; But at the same time, a big fear is expressed.

Until now, not only schools / colleges, hospitals but also prisons run by corporates have come into existence and flourished; But if the corporates withdraw their currency now and start keeping troops tomorrow, the government will not be needed. Marx had said at the last stage of communism that “there will be no government”. Did he even dream that capitalism would fulfill his voice?

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