The cryptocurrency called Bitcoin was created by a person known only as Satoshi Nakamoto. This is a sort of digital currency or an electronic money developed with the intention of creating peer-to-peer payment network which is decentralized. The term decentralized is means that the money circulated has no central authority or any regulating entity.
BTC has become a success because of it being an open platform for any internet transaction. It utilizes a mechanism, what we call a blockchain. To keep it simple and understandable, block chain network is a system of stored data transactions, that keeps tabs of every single transactions made and where there is no "one" location of where the records of these are kept. These transactions are not prone to corruption and are not easily traceable by snooping third party entities such as banks.
In fact, this cryptocurrency and the blockchain system was established because of the distrust in other mediators such as banks, governments and other financial institutions that had caused a number of economic crisis in recent years. These new systems allowed for a more open and trust based relationship for users and clients. Know more facts at https://www.huffingtonpost.com/ameer-rosic-/what-is-bitcoin-mining-a-_b_13764842.html.
This kind of digital currency system has unlocked newer and better ways to perform transactions in through the internet. It has been especially utilized in the dark web which mainly uses cryptocurrency to buy otherwise unlawful or banned equipment. However, these usage pales in comparison to the fact that millions of people use this system as an alternative to an unstable and potentially volatile global banking system.
The value of this cryptocurrency has often been misunderstood by the layman. BTC uses a monetary value system where, the electronic currency itself is based and regulated by its internal algorithms, and which allows it to be shielded from external manipulation and regulation from institutions such as governments and central banks. Furthermore, they often conflate the increase in its value. It often causes mistrust to some because they believe it is a form of pyramiding scam. What these people fail to realize, however, is that Bitcoin is just digital currency.
The increase in its value is incremental and does not really mean the cryptocurrency itself has inflated in value. A currency is used as a mode of exchange. It supposedly has no form of value or price. It can, however, be converted to other hard currencies. People use bitcoin to save and earn them through trading and mining. Just like stocks, they can be traded in open-markets, buying them low and then reselling them at a higher interest.
Bitcoin and other cryptocurrencies just like, like money, changes with the times. You only have to see what's up ahead to truly predict whether or not doing business using Bitcoin is profitable.