How Cryptocurrencies Like Bitcoin is Changing the Financial Systems Future?

The cryptocurrency which is a virtual electronic payment function outside the traditional financial system and has now become a develop...

The cryptocurrency which is a virtual electronic payment function outside the traditional financial system and has now become a developing issue to the local law enforcement. Transacting with the cryptocurrencies has elevated and created the perception of pseudonymity and confidentiality. With the related innovations cryptos has continued to gain a stand in the economy, and is now firmly entrenched in the domestic and international commerce, it is important that the law enforcement needs to have a clear understanding on what cryptocurrency is all about, its functions, and its usage for both legitimate and illegal activities.

How Cryptocurrencies Like Bitcoin is Changing the Financial Systems Future?

Though the Bitcoin has existed two decades ago since 2009 and its technology which lies underneath and on which it is built has roots going back more further. If a trader had invested around $1,000 in Bitcoin in the year it was publicly available first, he will now be a richer person.

Bitcoin software was made available for the first time to the public in the year 2009 and the coins were created through a process called mining, where its transactions were recorded and verified through the blockchain. After the popularity and acceptance of BTC on many internet platforms, Bitcoin trader and investors started Bitcoin trading using crypto trading apps and online exchanges like Binance etc.

Bitcoin was valued for the first time in the year 2010, if it was not traded and only minded, then it would have been impossible to assign a monetary value for the emerging cryptocurrencies. With the increase in Bitcoin popularity, the idea of the decentralized and encrypted cryptocurrencies has created a few other alternative currencies called Altcoins. These alternative crypto coins were designed to improve and develop the original bitcoin by providing anonymity, an increase in speed, and other advantages. At present, there are around 1000 altcoins in the market and the new ones appear every day.

With the immediate rise in the Bitcoin value to $1,000 for the first time, the price has also seen a quick decline in a couple of months. People who invested at this point in time saw heavy losses. Also to their surprise, the cryptocurrency which was designed with anonymity and lack of control has invited the hackers to get attracted to them and thus became the lucrative targets for the criminals.

The other cryptocurrency which came nearby to Bitcoin was Ethereum and has created enthusiasm around the Ethereum platform. Ether was used in the platform to facilitate smart contracts and related apps based on blockchain technology. The arrival of Ethereum has marked an emergence in the Initial Coin Offering or ICO. ICOs are nothing but the fundraising platforms which offer the investors a chance to trade in the startup ventures with shares. The blockchain technology behind Bitcoin has sparked the revolution in financial technology and its related industries.