Should I Care about Bitcoin and Cryptocurrency
Let’s talk about something that is going to change your life!! Well, not today or tomorrow but at some point, in the future. That might sound dramatic, so if you haven’t yet heard of Bitcoin and cryptocurrency now you have.
For this post let’s just understand the basics of what Bitcoin and cryptocurrency are, and why they could change the world. Books like Digital Gold by Nathaniel Popper discuss the history of Bitcoin and parts of it sound like a spy movie. Bitcoin was the brainchild of Satoshi Nakamoto, who is still a mystery figure and that is certainly not his real name. Satoshi set out to build a community and currency that was not reliant on a government or a bank. All current forms of currency are managed by a central government institution and the banks are regulated by that government.
As we saw in the financial crisis of 2008 and the Great Recession, the judgement of the banks is not to be trusted blindly. In 2008 Bitcoin came into existence with a grand idea of allowing peer to peer transactions without the need for a central institution. This is accomplished through the base technology of Bitcoin called blockchain. Imagine that you pull out a dollar bill from your pocket and with that dollar bill there was an electronic history of the creation of that dollar along with every time that dollar changed hands. If you pulled out a dollar that didn’t’ have a verifiable history, then you know that dollar isn’t genuine. Even more, every person you wanted to exchange that dollar with could verify the history and validity of that dollar before they accepted, it because they also had the record of all dollars.
That is essentially what Bitcoin and cryptocurrency are, they are electronic currencies by which any user on the system has a record of all transactions of that currency. The more computers on the network that have and share that history, the more secure the system is from manipulation or fraud. Because there is no central source to be corrupted, all connected computers share in the verification process of a transaction. With the success of Bitcoin which has grown beyond Nakamoto’s wildest dreams, the value, flexibility and security of Bitcoin has spawned an onslaught of additional cryptocurrencies and ventures.
These new currencies such as Litecoin, Bitcoin Cash, Ethereum and many others have grown in the goal of earning riches but also solving problems. This leads us to the part where Bitcoin and cryptocurrency effect your life. The technology that Bitcoin is based on is a profound open source software, that has drawn the attention of Silicone Valley, Wall street and the payments world. Large Wall Street funds are investing heavily in Bitcoin, cryptocurrency and block chain and the use of payment acceptance is steadily growing.
Just as the institute of credit cards changed the landscape of the payments world, Bitcoin and cryptocurrency have the potential to do it again. As a payment processor we always working to bring our merchants the most up to date payment services. Therefore, we are actively looking for opportunities to make the possibility of cryptocurrency acceptance possible for our merchants. I am sure that we will have many related posts in the future, but until then notice how much talk of Bitcoin and cryptocurrency your hear in the coming days.