In the recent years, the Cryptocurrency is the one of the hot topic in technological world. More than the 1000 cryptocurrency are available, but Bitcoin (BTC) and Ethereum are the most popular currencies in the crypocurrency world and developed by anonymous person or group of persons named used as ‘Satoshi Nakamoto’. It based on peer to peer Model and technology used in the bitcoin is ‘block chain’ technology which consist of string of blocks. These blocks consist of previous hash or block or root blocks, It creates networks of blocks. In these transaction can be done anonymously. It can be recorded on the block and block created an be tied with another blocks and this how block chain created.
In the recent year you saw bitcoins develop as market on a global level, but due to in limited numbers and their demand is high so, prices of these currencies are very high and very volatile. Traditional currencies are backed by countries and central banks, but these bitcoins are not backed by legal authorities. It’s totally based on the demand and supply. It is based in decentralized system and there is no legal owner of the bitcoin. In January 2017, it started about $1000 but a sudden dip and value devaluated to $775 due to the some investigation from Chinese side on cryptocurrency. The market capital of crytocurrency in the beginning is about $26 billion. From April to july 2017 bitcoin performed tremendously and valued upto $1000 and market capital over $100 billion.
One of the Major factors regarding their volatile nature is mostly state governments like Columbia, Ecuador and mostly central and islamic countries like Saudi Arabia and Iran. In India, Bitcoin is banned as a legal tender but government emphasis on block chain technology in the payment System. So, decision taken by state government also affect the price of crypto currency. In January 2018, It’s market capital is about $830 billion but due to high volatile in nature, the Market Capital as of Sep. 2018 drop to $186 billions. One of the famous investor Warren Buffet people not understanding what actually is. It is not a investment, It is own kind of gambling. Such words from influential figure also help to remove confidence from people regarding bitcoin.
Bitcoin is actually a gamble made by people. Due to volatile in nature it is risky to invest. Once they reach highest in 2017 but after a blow came value is highly depreciated.The technology behind bitcoin is Block Chain In the coming days, Block chain is implemented in all the electronic payments and gateways and also used in other disciplines.