What is Bitcoin and How is it Changing the Financial World?

A brief History 

After being relegated to the periphery of the global financial system, cryptocurrencies like Bitcoin and Ethereum have entered  mainstream consciousness in an impressive and disruptive way. Bitcoin was the first viable cryptocurrency. Initially, Bitcoin enthusiasts were a small group of early adopters, mostly programmers and technologists. Many of us think cryptocurrencies are new. But the idea of ​​creating a more open and accessible financial system with higher privacy and lower costs has been around since the 1980s. 


How does crypto currency work? 

Bitcoin and alternative cryptocurrencies are built using blockchain technology. Specifically defined, a blockchain is a type of digital ledger made up of records called “blocks.” According to online definitions, blockchain software is a decentralized, distributed, and often public database that records transactions across multiple computers. No one can change the blocks in the chain in the future without changing all of the following blocks.

The blockchain is not limited to financial transactions either. It also serves as a real-time register of items such as contracts and physical assets. Because it is open, anyone on the blockchain can see the details of each block. Once a block is buffered and encrypted, the only person who can make changes is the person who “owns” the block. 


What is the role of cryptocurrency in the world? 

In 2009 Bitcoin was presented as an alternative to physical money. Cryptocurrencies have evolved in such a way because they are located in decentralized systems. Decentralized system means that it is not regulated  by any country or government. The main difference between cryptocurrencies and real money is that money is created by a government/ country while cryptocurrency are not. 


How can cryptocurrency help you? 

An economic world crisis that began a decade ago set in motion virtual currencies that have become more popular and have experienced steady progress. Cryptocurrency has found a place in society where it has been integrated as another form of payment method for products or even services. Not only can cryptocurrency be used as a payment method but you can also invest in them. Cryptocurrency has been proven to be a useful resource and can help you avoid future difficulties that may affect your economy. 


According to Daviescoin.io, these are the benefits that crypto currencies bring to the economic world:

  • Protect your Identity: People who use cryptocurrency have their identity protected and it is confidential. 
  • Security: A fundamental aspect is that you can be sure that you are not going to be robbed. It generates confidence in customers 
  • Prevents Hacking: By using cryptocurrencies you cannot be hacked meaning no one can look at how much you own or steal it. 
  • Transparency: By using cryptocurrency you achieve absolute transparency. The transactions that are stored in a public book are achieved thanks to decentralization managed by public blockchain however only you can access them. 


Cryptocurrencies are the future since it improves the banking world and brings those who don’t have access to a bank an economic tool that can help them in times of need. Whether it is to  pay a bill or investing your money, it is a great way to make sure that your assets are secure. Cryptocurrencies would give one third of the world’s population an opportunity to have more financial freedom.