Well, Bitcoin is the first-ever digital currency that is used and distributed electronically. In simple terms, Bitcoin is a currency just like the dollar, the Euro, and other traditional currencies. It can be used to buy goods and services, hold value, and do many things a currency typically does. However, bitcoin wallet has no physical existence; it only has a digital existence.
There is a bit of confusion as to how bitcoin works. First of all, you should have a bitcoin wallet installed on your computer or mobile device so that you have a bitcoin address. You are free to have all the addresses you want. Anyway, with this address, you can make payments in the form of bitcoin.
Limited acceptance
Bitcoins are accepted only by a very small group of online merchants. This makes it infeasible to completely rely on bitcoins as a currency. Many business organizations accept bitcoins but unfortunately, the majority of companies do not recognize Bitcoin as a legitimate exchange.
Easy illegal approach
Due to the lack of government control, it’s much more difficult to track illegal activities in the cryptocurrency space. This risk lowers the chances of cryptocurrencies becoming a mainstream currency.
Value of Bitcoin
One bitcoincosts roughly about $1,200 now. According to one Snapchat investor, the value could be as high as $500,000 by 2030. So, one can use it as an investment instead of using it as a payment mode.
Conclusion
Bitcoin is trending now and in the future, it may take place as a mainstream currency. Like every other thing, it has some pros and Cons. Bitcoin is a revolutionary idea in achieving decentralization, but the current implementation suffers from libertarian economic dogma and critical mistakes.
Bitcoins can be helpful to a lot of people while on the other hand because of some security reasons it can lead to cyber theft and fraud.