Bitcoin isn’t a product, and it is not even a company, it’s a thing, an entity so to speak. So can factors that had been used to attribute a former bubble be used on a cryptocurrency?
I really do not think it’s that simple. Firstly, let’s reply a question that some persons are asking which is;
What is bitcoin?
Bitcoin was created by an individual or group often known as Satoshi Nakamoto and it is what’s often known as a cryptocurrency, it is digital money and is the first peer-to-peer payment network that is decentralised. To be decentralised implies that there is no central authority to regulate the entity. A key factor that has attributed to bitcoins success is the fact that it is totally open.
It makes use of a technology called blockchain, and lots of people have been asking the question “What is blockchain?” So allow me to elaborate a bit. The blockchain network is an open ledger that displays every single transaction that’s made, and is incorruptible because there isn’t any ‘one’ location where all of the records are kept. This prevents any cyber attacker from corrupting the data on the ledger. This is the dream that was thought out from its creator, because the rise of bitcoin and blockchain was created out of the mistrust from the banks and financial establishments throughout the housing crisis of 2008. So the concept that every node (computer) on the network might see and verify each transaction that’s being made, brings a few form of trust.
Imagine if 1,000,000 people every had a duplicate of the same instructions to build a toy automobile, then someone got here along and had totally different instructions, they might not be able to build the same automotive because they’ve totally different instructions. The truth that everyone on the network can see the same transactions builds sturdy security defences.
This digital monetary system has opened doors for a new strategy to conduct transactions over the Internet. Especially for darkish internet customers who use the cryptocurrency to buy malicious objects like weapons, medication and hit-men. The continuous use of bitcoin market for buying goods and companies over the internet is what gives it its energy in my opinion.