Bitcoin is a new investment trend that has recently gained popularity. However, whether it is a wise investment is still debatable. Bitcoin is volatile in part because it is still a new phenomenon, and as such, there is a lot of uncertainty surrounding it. Another issue is that governments around the world have yet to develop clear guidelines for how to treat Bitcoin and other digital currencies. When it comes to investing in Bitcoin, caution appears to be the watchword for the time being. While some people have made a lot of money by investing in Bitcoin, there have also been numerous reports of people losing everything. Before making any investments, it is critical to understand Bitcoin, how it all began, and where it stands today. Here's a quick primer to get you up to speed.
A Doubtful Start
The starting point in Bitcoin history goes back almost a decade and a half, in 2008. Bitcoin was created by an entity under the pseudonym Satoshi Nakamoto. The real identity remains a mystery even today. Satoshi worked on the source code of the program along with other volunteer developers for two years, until December 2010. On that date, Satoshi left the public activity on the project and decided to let the community guide its growth and progress. As a cryptocurrency, Bitcoin lacks unique administration. It is not linked to any particular financial institution. The principle behind it allows users to transfer money using the same individual network that uses free and open-source software. Transactions are verified and guarded by encryption protocols carried out by a decentralized network of volunteer nodes. These nodes keep track of the accounts on a public database known as "blockchains", preventing double expenditure or falsification. As a reward for such highly information labor, the Bitcoin network protocol gives the verifying computers new Bitcoins, this is what we know as "Bitcoin Mining".
A Controversial Currency
Some of the biggest criticisms against Bitcoin are the electrical and environmental costs of the mining process. The use of Bitcoin in shady businesses and blackmailing is also a particular concern. Additional concerns come in the form of loss of decentralization as the mining process becomes harder, and the rising speculation on its price when compared to current currencies. As it is an unprecedented economic phenomenon, the economists' opinions vary. The true value and long-term stability are topics of continuous debate. Nonetheless, Bitcoin use for the purchase of property, services, or even other currencies goes up day by day.
The New Trend For Gambling
Since it first walked into the digital world, Bitcoin's value has been extremely volatile, with a continuous growth trend. Drops of 80% of its value in 2018 and 50% in 2021 have been some of the lowest and most dangerous points in Bitcoin history. Yet its actual worth dwarfs those losses, with an increase of 20000% in just five years. Being such a valuable currency, it's no wonder that online gambling venues want to have their hands in the Bitcoin business. Most big-name online casinos are already accepting Bitcoin as an option for betting. Many are even adding other cryptocurrencies to their offerings, like Dogecoin and Ethereum. According to the Spanish website DrJuego, the rise of crypto casinos and betting sites in the Spanish and Latin American markets can be related to the concept of decentralization and lack of links to any particular bank. Thanks to this particular feature of cryptocurrencies, both gamblers and owners receive in full their earnings for a particular bet and/or win. No extra payments or handling fees for banks means that each bet goes in full to the casino, and each win for each gambler is completely theirs, nothing extra to pay. Security is also a big factor, as cryptocurrencies, Bitcoin, in particular, have extremely high levels of encryption. This, in turn, gives cryptocurrencies a level of security that not even Euros or Dollars can achieve.
The Future Of Economics
Many detractors, many supporters, cryptocurrencies, and their leader Bitcoin have left and continue to leave their mark on a world that continually vies for evolution without risking deception. While Bitcoin's history has been one of ups and downs, the opinion of some of the greatest minds in the world of economics sets this decentralized currency as the future of economics worldwide. Only time will tell how these digital currencies will continue to shape the digital world, and as for us, let us be witness to what tomorrow brings.