State of bitcoin
Bitcoin is the first monetary application on a large scale value transfer and validation platform, deployed in the center of the internet as a public good, available for everyone. Start interaction with Bitcoin network is as simple as having a social network account, the first step is to open Bitcoin wallet and the second step is to get some Bitcoin, that you can buy from several exchanges, at the time of writing of this article Bitcoin market capitalization is about 94 Billion and it is growing. Bitcoin current price is above 5679 USD and investors have solid expectations that the price will increase. For existing moment total market cap of all cryptocurrencies: $176 billion, 24h trading volume: $4.5 billion and BTC dominance: 54.3%.
In the year 2008 Mr, Nakamoto may haven't thought that his invention could be so successful, that everyone who has ever heard about Bitcoin would be fascinated by the technology and its features. At the beginning of Bitcoin story, Mr. Nakamoto wrote, purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without the burdens of going through a financial institution.’’ As we see Mr. Nakamoto didn’t expect more than an electronic cash that would be more efficient and would be working without third party participation.
Bitcoin has created a new branch of economics and is helping people to improve their livelihood, a new type of jobs appeared on market, new Bitcoin companies are seeking for talented people who are eager to be a part of the most innovative technology that has a potential to change the world.
Bitcoin has promoted start of large industry, the industry of mining, The mining is a process, when all network transactions are automatically confirmed by mining hardware, Bitcoin network collects all these transactions in one list and that is called block, and miners job is to confirm all transactions and write them into the main registry - the blockchain. Miners keep system continuously running, decentralized and distributed. Mining farms mostly are located in the countries where electricity is cheap, because accesses to the cheap electricity source is a key for successful and profitable mining process. For today biggest mining farms are located in China and it takes approximately 80 % of total hashing power. China is followed by Iceland with 5 % hashing power. Japan and Czech Republic with 3 % each and India and Georgia with 2 % each. The second thing that that bitcoin changed is global currency market, new cryptocurrency has become favorite trading assets for many traders, during of last week approximate daily trading volume hit 200 mln USD.
For today the quantity of daily transactions in Bitcoin network is approximately 300 k and the time that takes confirmation is approximately 15 minutes. At the start of April of 2017 when Bitcoin price showed increasing trend more investors were attracted, Bitcoin exchange market was booming that caused an increased quantity of transaction and confirmation time increased. In an effort to eliminate the issue of lagging and bring the currency to the masses, miners and core development team offered many different solutions, core development team have suggested a soft fork, the use of the new SegWit2x technology that can help double the number of transactions, but miners had absolutely different vision and plans for future, their offer was totally new currency based on blockchain technology called Bitcoin Cash, since July 23rd new currency was launched, during of the first week many investors paid attention to newcomer and for mid of August the price hit 970 USD, but after this moment the trend shows price decrease. that has really saved Bitcoin for this time network become faster and transactions easier. There is an upcoming fork of Bitcoin that apparently takes a place in November, that is reasoned by the controversy between Bitcoin core developers, big mining pool operators and miners, new blockchain based currency presumably named as Bitcoin gold will appear on the market. This process of forking underlines the democratic nature of open source software and in the end market will decide which version of bitcoin is more robust and suitable.
When we speak about Bitcoin, we have to mention its volatility, Commonly, the higher the volatility, the riskier the security, that’s why many investors and users are afraid of using Bitcoin, but the reality is that, all investments in Bitcoin are profitable if investors will wait for right time. Bitcoin and cryptocurrencies have made a new type of investors and many stock trading platforms have added cryptos in their portfolios, Bitcoin has become a new passive income asset. now, investors have just to be smart and patient to get the desired result.
Bitcoin is not more volatile as other Cryptocurrencies and in some cases, it’s less volatile than some fiat currencies and most important thing is that Bitcoin volatility can be traded.
Today we see that Bitcoin and blockchain attracted the attention of mainstream media and technology is becoming part of global economics. unlike fiat currencies Bitcoin is really decentralized and despite many differences among key players of industry, Bitcoin miners, Bitcoin core developers, Bitcoin pool owners and big investors they all agree that the technology has huge prospect and everyone wants to keep it running on its way, none of them want to control the whole network, because that will cause the down of the system, if someone will be able to control more than 51 % of network that will violate real decentralization. The current quantity of user is about 10 mln worldwide, (but there no exact data that can be proven) among these users there are people who invested Millions of dollars in Bitcoin and people who use Bitcoin to send small amount, people who mine other currencies and use Bitcoin as easiest way to convert money from crypto to cash. This shows that Bitcoins can be used by everyone and everywhere.
Every day more people are joining merchants worldwide who accept Bitcoin, Governments are trying to start their own blockchain or to use existing public blockchains for their purposes in UAE government is testing blockchain technology for business registration, trade and central bank operations, Estonia launched test version of blockchain based voting system, Georgia started land registration on blockchain commercial enterprises and venture capital firms have invested more than $1.4 billion in blockchain since just 2014 and if the trend will continue, forecasts that the Bitcoin price will hit 100 k over next years seems to come true.
To sum up, the current state can be described as the most prospective thing, that promises simplified life for ordinary people and simplified financial services. Improved merchandising and accelerated trading worldwide. The opportunities are much wider than it was predicted for internet in early 90.
We don't know what bitcoin generally cryptocurrency and blockchain tech space will look like in 5-10 years but for sure if we as a society will manage to rightly deploy this technological tools we will definitely make the world better place.
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