Bitcoin is the premier cryptocurrency of the world. It was launched back in 2010 and since then it has seen insane increase in worth and price due to the distributed consensus-based approach the bitcoin network uses, biggest blockchain database, safe transactions and no external influence. Now many people who aren’t familiar with the bitcoin raise some issues with the cryptocurrency.
They believe that fiat currencies have value because they have something at the back end like gold reserves, national resources, labor, foreign policy and even military to uphold the currency. Now all of these things indeed have an intrinsic value and ignoring the solid argument that today’s currency and its value is only based on speculation, you will see that bitcoin struggles against physical attributes like these. It doesn’t have anything on its back like these fiat currencies but what do we have to prove that Bitcoin is actually grounded in reality?
The worth of bitcoin is in its blockchain and the system of nodes and miners around the world. It is perhaps the safest record in the world right now. Nobody has ever been able to meddle with the bitcoin blockchain and the reason is that it is based on decentralized consensus based approach.
Millions and millions of computers are either dedicated or partially deployed in this system, making it the biggest peer-to-peer network in the world. This astronomical number of hardware, software and personnel are voluntarily working 24/7 just to secure the system.
This system makes the bitcoin block-chain the best kept open-source secret in the world. Using blockchain one can transfer money in a peer-to-peer anonymous transaction anywhere in the world.
All of these features are something that the fiat currencies aren’t able to provide no matter what they have on their back end. Their databases are susceptible to theft, their transactional services are based on credit and various taxes, regulations and other blocks are present in international transfers.
So, bitcoin is potentially the global currency of the future due to this decentralized system involving millions of personnel and computers around the world. This is what is at the back end of the biggest cryptocurrency in the world and the worth is potentially limitless.
Also published on Medium.