If you want to know more about bitcoin you should first understand what is a cryptocurrency and how it works. A cryptocurrency is a type of digital currency that is created and managed in advanced encryption techniques which are called cryptography. People made a Bitcoin in 2009 and the virtual concept of cryptocurrency put into reality.
This cryptocurrency got the media attention in April 2013 when it reached a record of $266 per bitcoin. At the moment, everyone is asking for the future of bitcoin, and what will happen to the cryptocurrency. Will it replace the dollar or it disappears from the market? If you want to find out more about this topic check BitcoinProfitApp.com for more info.
The Future of Cryptocurrency
There are different thoughts among economic analysts when it comes to Bitcoin. Some of them said that the biggest change in cryptocurrency is about to happen when the institutional money enters the market. The others said that the future of Bitcoin lies in the fact that it will be floated on the Nasdaq, which will get the credibility for blockchain, and its uses as an alternative currency. Some economists said that the crypto and bitcoin needs to have an official fund, for example, ETF (exchange-traded fund), where people can invest in Bitcoin.
Alternatives to Bitcoin
Several companies put on the market alternative cryptocurrencies, so the Bitcoin is not the only one. The main rival of the Bitcoin at the moment is Lite coin, which is design to make smaller transactions faster. The creator of silver Bitcoin’s rival, Litecoin is Charles Lee said that the Litecoin can be mined by a regular computer you have in your home.
Another alternative cryptocurrency, Ripple, was made by the technology entrepreneur Chris Larsen in 2012, and it is also both currency and a payment system. If you use the Ripple network system you can do the transfer of funds in any currency to another in just a few seconds.
The last alternative to a Bitcoin is MintChip which is the creation of a government institution, especially the Royal Canadian Mint. This is a smartcard that has electronic value and can transfer from one chip to another.
Many people accept bitcoin, but they are still in the minority. It must be accepted among the huge number of consumers to be in majority. To become mainstream in the financial system Bitcoin must fulfill some criteria, it must be mathematically complex constructed but at the same time easy for every consumer to understand, the consumers must be protected. We are not sure that this cryptocurrency can satisfy these criteria, but if it does it will be the first mainstream cryptocurrency.
Should you invest in Cryptocurrencies?
Like in any other investment you should be careful and look through all the risks because you can lose most of your investment. We cannot deny it’s success, since 2009 when it was launched but we are not sure what will be the future of this cryptocurrency. We will have to wait and see.