Bitcoin and Cryptocurrency, are these interlinked? How are these distinct from one another? Wait, wait! No more questions, let us explain to you the underlying idea behind Cryptocurrency and Bitcoin.
Bitcoin and Cryptocurrency
Bitcoin is considered to be the market leader in the world of Cryptocurrency.
What is it? How can we earn money through it? Is it fruitful? This article will answer it all for you!
Cryptocurrency is a digital currency designed in a way that it can be used to buy goods and services, but it uses an online ledger to record the transactions.
Understanding this, let's further move on with what Bitcoin is – this is the type of digital currency that uses Cryptocurrency and is monitored by the decentralized authority.
In a nutshell; Cryptocurrency is the technology medium for facilitating different financial transactions over the digital mediums, while bitcoin is the digital currency like many others.
Bitcoin: What's the hype all about?
Dating back to the days, Bitcoin was the first-ever digital currency mined by millions of people from different locations of the world.
It came into being in January 2009; the mysterious and pseudonymous Satoshi Nakamoto set out the idea.
The true identity to date is a secret. He built a decentralised system that was open to anyone and everyone from around the world.
People could participate, but the big idea behind this design was that no one could own Bitcoin.
Talking about the store of value, there is a very interesting story attached to this. It's all about the exponential jump in the rate of Bitcoin from big banks to even Wall Street.
The real-life story translates back to 2010, using forum bitcointalk.org, a developer wanted to have two pizzas. So he walked to a pizza store and purchased two pizzas paying Bitcoins. And what then? Fast–forward a few years, the value of Bitcoin jumped to 425 million dollars.
Bitcoin: How do the payments work?
Every Bitcoin transaction is continuously being updated in the ledger through software. This sets off the scarcity of Bitcoin, and the mining keeps on introducing new Bitcoins at regular intervals. The Bitcoin transactions uses math problems necessary to confirm transactions. But what helps the creation of more currency? The successful solving helps in triggering the creation of more currency!
Bitcoin: The Limitations
Talking about the first limitation, Bitcoin's share of the market cap of all cryptocurrencies fell from 85% to 41%. The price has soared and not dropped, but many rivals have risen even faster.
Secondly, the Bitcoin network only can process seven transactions a second due to code limitations. How to serve the masses then? That's the prevailing issue!
Moreover, the transfer is slowed and more limited in the capacity as compared to its latest rivals.
That's the world of Cryptocurrency, where Bitcoin is considered to be the market leader. Hoping this article has cleared out most of your queries. Got any more?
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