Bitcoin, founded in 2009 by a software developer using the nickname Satoshi Nakomato, was the most controversial issue of 2018 and will continue to be discussed in the coming years. We have listed important information about the issue of Bitcoin, which should be dominated by everyone.
Economists were completely divided into the future of the crypto currency, which was produced and processed in a completely digital environment. However, it is among the issues that should be known today about financial literacy.
Consider or not to invest in Bitcoin, there is no excuse not to know about this formation that builds the future of money.
Bitcoin has a limited resource
Since Bitcoin is a software-based value, its production is realized through IT technologies. This system, based on block chain logic, requires the processing of information for each Bitcoin production. The world’s most secure economic value-added is created through Block Chains, a system that is scattered around the world. But this has a limit.
Bitcoin production is limited to 21 million due to software basics. Today, the amount reached in 8 years is approximately 17 million. Bitcoin production is slowing down as the information increases and the requested processor power increases. Therefore, the time to produce 21 million units is increasing.
In fact, every crypto currency has a limitation in terms of software and Bitcoin will have to be used in commercial purchases in order to maintain its value after reaching 21 million.
Bitcoin users and manufacturers are anonymous
The founder of Bitcoin, Nakamoto, brings a condition of secrecy to prevent transactions from being provided with real identities. Every user and manufacturer can be active in the Bitcoin block chain. Don’t let that bring you to believe the system is unreliable. In fact, the phenomenon of trust in Bitcoin chains depends not on individuals, but on the overall system.
Kenneth Rogoff, a Harvard economist, also stated that there is a chance that governments will benefit from this anonymity and become a Bitcoin business.
In order to prevent legal grievances, the stock exchange organizations that enable you to invest in Bitcoin ask for their identity information. The reason for this is that the currencies that are in the legal framework to buy Bitcoin will be used.
There is no legal legislation for Bitcoin yet
Bitcoin, like many other technologies brought about by the Internet era and increasingly shrinking the world, is a subject that humanity is caught off guard in the legal sense. It is not officially banned by any state at the moment. On the other hand, it is not subject to taxation policies.
According to Bitcoin supporters, technology is one step ahead of legal systems. If we look at the situation from a legal point of view, we see that for everything new, current comments are needed. Taxation procedures and transfer cuts are entirely at the discretion of organizations serving in this area.
This article may change soon, and any country may make and take official decisions on Bitcoin.
Bitcoin is not produced for free, it consumes the amount of electricity that pushes the limits of the mind
Bitcoin mining is an intensive process in terms of energy consumption. When someone attempts to mining, they have to purchase advanced computer equipment for the operation of encryption systems. These systems now produce more energy in general terms than in most countries. So if you somehow learn the job and mining, you should consider the electricity bill coming to your door every month.
There are millions of individual miner-producers globally. Total energy consumption has reached scary dimensions. Even the biggest technological development that consumes the most electricity on its own is none other than Bitcoin.
Will Bitcoin replace credit cards and cash?
There seems to be a lot of tech-facet and economist in this regard. In fact, it is better to go to a correction in this discourse: Bitcoin technology, legal legislation and credit cards to replace the money is coming.
There are even experts who predict that this important economic revolution will take place within 5 years. But after reaching the production limit, it needs to make some changes to continue to be used as currency.
The entire system of Bitcoin allows only a few operations per second. When it is a real currency and used all over the world, a few transactions per second will cause problems.
On the other hand, large amounts of money cuts are made in Bitcoin trades. These cuts cause big firms to move away from Bitcoin and not see it as a currency.
Even with planned improvements, it is unclear whether this technology will become a universal payment system. Bitcoin began to resemble investment instruments like gold, rather than daily purchases.