The user base of crypto currencies like bitcoin is increasing in the world. People now prefer to use the block chain technology. Many online platforms are also using bitcoin payment API to process transactions. We are going to discuss why bitcoin is becoming a preferred choice among users these days.
Censorship resistant and decentralized
Some believe that the popularity of bitcoin is mainly because of its features like censorship-resistant and decentralization. The inventor of bitcoin is still mysterious but the technology named block chain is truly revolutionizing the world. It allows anyone to view the present and past transactions. However, keep in mind that the actual identity of the person who performed the transaction remains secure. There is no centralized authority in it but still, everyone can see the flow of the crypto currency in bitcoin. In short, this is a modern and attractive financial system in the world and has the potential of replacing the current financial system of the world. Censorship resistant and the decentralized bitcoin is a reality because of the combination of the block chain technology and bitcoin.
Block chain technology
Block chain technology is now used by many other crypto currencies as well but it was first introduced by bitcoin. This currency is actually based on the ledger which is tamper-proof and is known as a block chain. The transactions of bitcoin are peer to peer and secured cryptographically and there is no requirement of any central authority for serving as a regulator during the transactions. We can say that the transactions of bitcoin are secure and there is no corporate interference or the government regulations on it. The corporate sector and the government are controlling the fiat currencies of the world. Bitcoin is actually based on a decentralized network which is using the consensus mechanism known as the proof of work. The payment system of bitcoin is developed by keeping in mind that double spending is not possible. A transparent record of all the transactions is also available that too in real-time for all the users of bitcoin.
Digital wallets are used for storing the crypto currencies. These digital wallets are easy to access for everyone compared to the traditional bank accounts. We can say that these crypto currencies are promising independent financial inclusion to the people all over the world. It is important to select the digital wallet for securing crypto currencies carefully. Many wallets are compromised by the hackers, therefore read reviews about the wallets before using them. It is important to protect your private keys as well which is like a password needed for performing bitcoin transactions. Make sure that you never store private keys or the wallet information at the same place otherwise in case of any breach, you will lose everything.
In short, the future of the financial system is the bitcoin and other crypto currencies. These currencies offer greater control to the users and provide them anonymity as well. The users don’t need to worry about taxation or strict regulations when using bitcoin.