In the story of the evolution of money, we have come a long way from barter to cowries, coffee beans to coins, paper currency to plastic currency and the latest one on the line is “Bitcoin”. It is a “decentralised virtual currency” that took its shape after the subprime crisis of USA in 2008.
Ever since then, it has been awarded a number of hit and trials- being used a currency, in black marketing, round tripping, drug selling, hoarding (virtual gold) and as a ransom; as in case of ransomware attack by “wannacry”.
The latest proceedings about bitcoins suggest that it is a “valuable asset” rather than a “means of transaction”. While this question is open to debate, we will look at the various aspects of bitcoin and its utility, both as a currency and asset.
Blockchain and bitcoin
Bitcoin is an application of the Blockchain technology.
To put the understanding of Blockchain technology into simple words, let’s understand it through an example: