What is Bitcoin?
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By definition, Bitcoin is a digital currency which permits the user to perform peer-to-peer transactions without the assistance of the third party like for eg. Banks and governments. At its core, bitcoin is a set of protocols for generating digital tokens. They are for tracking online transactions in a way that makes it difficult to re-use the tokens or counterfeit. Its value is solely dependent to the extent that its users agree to. At the heart of bitcoin is blockchain- a technology that is publicly available- but largely anonymous online ledger that records bitcoin transactions.
What is blockchain technology?
Blockchain technology is an online ledger that simplifies the way we carry out transactions. Similar to the way Wikipedia operates, It allows its users to manipulate the ledger in a secure way without interference of a third party. Unlike a bank’s ledger which has a centralized network, blockchain protects the users’ identity and is anonymous. Therefore, making it a more secure way to carry out a transaction.
Facts about bitcoin.
The initial value of a bitcoin, set in 2010 was less than 1 cent, seven years later in 2017, it has crossed $19,000. Despite coming to public recognition only in 2013, the original cryptocurrency bitcoin was created by an anonymous cryptographer(or a group of cryptographers) in 2008. Known only by a pseudonym-Satoshi Nakamoto.
Despite the keenness around bitcoin initially dwindling down due to governments worldwide refusing to acknowledge the cryptocurrency, steps have now commenced on two of the largest US Exchanges- the Chicago Mercantile Exchange (CME) and Chicago boards option exchange.(CBOE).
What is the current situation regarding bitcoin?
While the bitcoin got a huge boost when CBOE started further tradings tied to the digital currency, The recent introduction of bitcoin by CME futures exchange witnessed lower culminations after opening higher. It settled at 5.25%, a stark contrast to the 19% surge in CBOE bitcoin futures on their first day of trading. The European stock markets closed at the highest level in six weeks, following wall street’s lead.