Bitcoins are a
form of “e-money” which is made of complex code created with the help of
computer. Process of creating Bitcoin is called mining and it can be carried out
by anyone with the help of a computer. Bitcoin is free from central bank
intervention and is a promising form of electronic cash. Bitcoin is currently
under experimental mode used over the internet. However it is gaining popularity
among people at a tremendous pace. Read all about Bitcoins in my earlier
article.
Reasons why Bitcoins are gaining Popularity
1. Bitcoins can
be easily stored on a user’s Hard Drive
It is easy to store Bitcoins in a virtual wallet of an individual which is stored on a hard drive. The software written to create Bitcoin is difficult. So once mined, Bitcoins are stored on a user’s hard drive in a virtual wallet. It can be directly sent to other person bypassing the intermediary banks while remaining anonymous.
2. Developments have
brought Bitcoin to limelight
Cyber currency as a concept existed for years. However the perfect storm of technological advancement and development has helped Bitcoin get the centre stage. The development in the global economy has brought Bitcoins to the cusp of mainstream use.
3. Strong Cryptographic
Feature
Bitcoin is created, used, transferred without the help or intervention of any intermediary banks. The transactions are done independently. The cryptographic feature of the currency makes it immune from counterfeiting. The level of anonymity associated with the currency promises the ability to spend money over the internet without fear of censor.
4. System is a network of
‘miners’
The system of creating Bitcoins is called mining. Also it can be created by any individual with the help of computer and set of programs. The system is a network of “miners” who supply the network with the processing power. This is necessary so as to maintain proper transparency in the system. Tally is one of the ways to prevent fraud and miners are rewarded for supporting the system.
5. Retailers have
welcomed Bitcoins
There have been several arguments over Bitcoin design. However the true test of a currency lies in the hand of retailers if they can buy anything using the same. It is interesting to note that Bitcoin has passed the test. From hard drugs to hard currency, songs, cars, consumer goods and many more, retailers have welcomed the new technology of Bitcoin. Bitcoin is being widely accepted by the masses.
6. Not Vulnerable to
cyber attacks
It was noticed that the virtual currency is vulnerable to cyber attack. In June 2011, cyber attack, when the hackers targeted virtual wallets and tried to wipe out the accounts, Bitcoins was the one which had limited risk and remained safe. The safety issue of Bitcoin was identified by the European Central Bank during June 2011 cyber attack.
7. Number of businesses
accepting Bitcoin are growing
The currency crises in
Europe helped Bitcoin gain tremendous popularity. The investors
interest grew and the number of businesses announced acceptance of Bitcoins for
wide range of goods. Very soon this became a movement in Europe and Bitcoins
gain tremendous popularity not only among individuals but also businesses and
corporate houses.
8. Two high-level
champions: The Winklevoss Brothers
The Winklevoss brothers need no
introduction, they are known to be the men behind the idea of social network.
The brothers also accused social network giant Facebook Inc. founder Mark
Zuckerberg for stealing the idea. The currency appeared to have the two
masterminds after its success. The currency at least has two high-level
champions: the Winklevoss Brothers which itself makes it an idea worth thinking.
