Bitcoin isn’t an item, and it isn’t even an organization, it’s a thing, an entity so to speak. So can factors that were used to attribute a former bubble be applied to a cryptocurrency?
I really don’t think it’s that simple. Firstly, let’s answer the question that some individuals are asking which is;
What is bitcoin?
Bitcoin was developed by a person or group called Satoshi Nakamoto and it’s what’s called a cryptocurrency, it’s digital money and is the very first peer-to-peer payment network that is decentralized. To be decentralized means that there’s no central authority to regulate the entity. A key factor that has caused by bitcoins success is the truth that it’s totally open.
It uses a technology called blockchain, and plenty of people have now been asking the question “What is blockchain?” So let me elaborate a bit. The blockchain network is definitely an open ledger that displays every single transaction that is made, and is incorruptible since there is no’one’location where all the records are kept. This prevents any cyber attacker from corrupting the info on the ledger. Ethereum This is the dream which was considered from its creator because the rise of bitcoin and blockchain was created out from the distrust from the banks and financial institutions through the housing crisis of 2008. So the proven fact that every node (computer) on the network could see and verify every transaction that is being made, brings about an application of trust.
Imagine if your million people each had a copy of exactly the same instructions to create a toy car, then someone came along and had different instructions, they’d not manage to build exactly the same car because they have different instructions. The fact everyone on the network can see exactly the same transactions builds strong security defenses.
This digital monetary system has opened doors for a brand new method to conduct transactions within the Internet. Especially for dark web users who use the cryptocurrency to purchase malicious items like weapons, drugs, and hit-men. The continuous utilization of bitcoin for purchasing goods and services on the internet is what gives it its power in my own opinion.