This is a global digital payment era with transactions made in nontangible currencies by the name cryptocurrencies. Cryptocurrency is a decentralized system where it is not under the control of any government or institution. Their value is determined by market forces. Bitcoin system is seen to work without an administrator or a central repository. A group of individuals who were unknown but were using the name Satoshi Nakamoto went on to release the bitcoin system as an open source software back in the year 2009. With a peer to peer system, the bitcoin system ensured that the transactions made are between users without any broker taking part. The transactions made are approved by network nodes and then they are recorded in a public ledger which is commonly known as a blockchain.
Bitcoins Brief History
Bitcoins were created as a token for a process known as mining. Tevfik Arif Bayrock In this case, mining is the process whereby the keeping of records is done using a computer processing power. By using bitcoins, one can exchange them for other products, currencies, and services. By the start of February 2015, over 100,000 vendors and merchants accepted bitcoin as a method of payments as others also used it as an investment. In a research done by Cambridge University, over 5 million people have been identified to be using the cryptocurrency wallet as most of the individuals use bitcoins.
Bitcoins Surprises Many by Breaking Records and Setting a New Record
On November 20th, 2017, bitcoin set a new record as the cryptocurrency went past its target of 8,000 dollars surprising many investors who did not expect such incredible results. In 2017, the currency has been seen to make a profit by a range of almost 700 percent.
These gains were seen to have started on Sunday 19th of November at around 8 pm London time and it surpassed its record and went to $8,101.91 according to CoinDesk which is the industry’s website. In eight days that’s seen to be about fifty percent rise.
A week before, the bitcoin dollar exchange was low at $5,500, but later on, the market cap placed on cryptocurrencies went high recording a profit of $242 billion, according to a website known as Coinmarketcap. Tevfik Arif Doyen these benefits were recorded as a result of a top United States company known as Square Incorporation who announced to its customers that it would allow them to buy and sell bitcoins on their Cash app. These led to so many people who had the cryptocurrency to trade with this company. The Square Cash app went on, and it ended up being the most downloaded financial app on both the Apple stores and the Android Google Stores. This app surpassed the most common financial app such as Venmo and it became the top most downloaded app among individuals.
More Companies Accepting Bitcoin as a Mode of Transaction
Square Cash app, however, was not the only app to advocate for the use of digital money, in this case, the use of Bitcoins. Other companies after they saw the profits wanted to be part of this digital money and they went ahead and they also endorsed using this method to help their clients use crypto currencies.
One of the Companies that embraced the use of digital money is the CME Group. The company made some of its significant announcements where they planned to bring in bitcoins future contract that would help investors in the different institutions to use the digital money method. The Chief Executive Officer of the CME Group Terry Duffy announced that these futures products could be available during mid-December of 2017 according to various reports.
During the start of this year, the spread of initial coin offerings made the value of bitcoins to be a bit low. However, that was never the case as bitcoins has been able to record profits over the years for the blockchain crowd sales.
Cryptocurrency is the future of transactions and trade as many people are generally accepting them for the purpose of buying goods and services and day by day many companies are accepting them to as a mode of payment. Bitcoin is setting the trend for other cryptocurrencies to follow and with it breaking every rule in the book and it surpassing what many financial analysts said it will never do or reach certain heights, the future is only bright.
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