Bitcoin’s Rollercoaster Ride: A History And What To Expect Next
In the last few years, there is not a single person who hasn’t heard of the words like cryptocurrency, bitcoins, etc. A major part of the population lived in the fantasy world of mastering Bit Index AI trading and earning thousands of dollars. But with the regulations enforced, are those bubbles bursting?
To understand the impact of regulations, there is a need to get a hold of bitcoins. What are bitcoins? Why are they so popular? Read on to know more in detail to have an overall better understanding!
Bitcoin: Where Did It Come From And Where Is It Going?
The introduction of bitcoins to the world was in 2009. Surprised? Of course, you would be. Even though the coins were around for the last 13 years, it took a while for them to get recognition. In 2017, bitcoins became renowned, drawing attention to themselves. Even though these digital coins remained dormant for 13 years, they still levelled up later on. This is quite an achievement concerning technologies.
The power of this currency is immense. Even though several crypto coins like Ethereum came after it, bitcoin remains majestic as always. Bitcoin, being a digital currency, changes its value so often. With no physical form, it completely depends on a PC or laptop. The ability of the coins to be used in place of liquid cash makes it all the more desirable.
Are you wondering how it is created? The process of mining is often associated with bitcoins. Since digital money cannot be printed, bitcoins are mined as units. Who does it? Bitcoin miners are generally entrepreneurs with state-of-the-art technology to assist in the mining process.
Network harvesting software is introduced into computer systems to carry out the mining. The transactions can be checked throughout. The harvested or mined bitcoins go out into the world as circulating money. A fully automated system or a crypto Bot makes the whole affair a lot simpler, without the need for a human workforce.
The decentralized nature of bitcoins is expected to mark the future of cryptocurrency. Centralized currencies of all world countries with a central power have a specific structure and hierarchy. Decisions are made, and changes are enforced by one person/institution.
The idea that giving power of currency to a few people of the governed or the state disrupts the ideals of a lot of people. Bitcoins, on the other hand, are decentralized. There is no higher power involved here. The automatic system involving computer codes takes the power out of the hands of everyone. This system seems appealing to a lot of idealists who believe in the dissolution of power.
Need for regulations
The uninterrupted circulation of bitcoin helped people make money within a short time. Since the coins do not have a fixed value, it creates quite the trouble. The digital currency with no clear-cut value or monitoring offers zero insurance to the investor.
The chances of the whole market falling the next day are real and there is no way to predict it. Such uncertainties do not sit well with everyone. The uncontrolled release of crypto coins enables a situation where liquid cash will be replaced completely, affecting resources and assets all over the world.
Possibilities of such dangers call for the need for some form of regulations for cryptocurrency. Keeping this in mind, international bodies have finally addressed the threats that bitcoins create to the world finance system.
Approaches to regulations
The introduction of licensed asset providers to include all processes linked to crypto is a practical approach to the cause. All kinds of service payments need to be supervised with security to minimize risks. Provisions to offer clear demands to regulate the financial systems and give them a taste of crypto assets can be beneficial too.
Conclusion
Having discussed the regulations made by countries, it is natural to wonder if this is the fall of crypto currencies which can disrupt the entire financial investment markets. If we talk about the harsh truth, regulations gave crypto a little more structure that it lacked, eliminating anyone having any unfair advantage. The world of cryptocurrency is still intact, ready for trading and investments.
