Bitcoin isn’t something, and it isn’t even a business, it’s a thing, an entity so to speak. So can factors that have been used to attribute a former bubble be used on a cryptocurrency?
I truly don’t think it’s that simple. Firstly, let’s answer the question that some individuals are asking that will be;
Bitcoin was created by a person or group referred to as Satoshi Nakamoto and it’s what’s referred to as a cryptocurrency, it’s digital money and is the very first peer-to-peer payment network that’s 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 fact that it’s totally open.
It runs on the technology called blockchain, and plenty of people have now been asking the question “What’s blockchain?” So let me elaborate a bit. The blockchain network is definitely an open ledger that displays every single transaction that’s made, and is incorruptible because there is no’one’location where most of the records are kept. This prevents any cyber attacker from corrupting the info on the ledger. This is actually the dream that was considered from its creator as the rise of bitcoin and blockchain was created out from the distrust from the banks and financial institutions during the housing crisis of 2008. So the idea that every node (computer) on the network could see and verify every transaction that’s being made, brings about a form of trust.
Imagine in case a million people each had a copy of exactly the same instructions to build a doll car, then someone came along and had different instructions, they’d not be able to build exactly the same car because they have different instructions. ZCash The fact everyone on the network could 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 get malicious stuff like weapons, drugs, and hit-men. The continuous use of bitcoin for purchasing goods and services online is what gives it its power in my own opinion.