Bitcoin is one of the first digital currencies to use peer to peer blockchain technology which facilitates instant payments. Individuals and companies who have the computing powers and who participate in the Bitcoin network consist of nodes and miners. Miners are the people who process the transaction and get rewards or fees in return. Miners get new Bitcoin, and the rate of which is periodically declining. Currently, there are 3 million Bitcoins yet to be mined. People can get Bitcoins in two ways – they can buy them for exchange, or they can mine them.
Now Bitcoins are also accepted by retailers. The transaction is handled by a requisite hardware terminal or wallet address through QR codes. Bitcoins are stored in wallets, and the owner receives two keys – a public key and a private key, which are a set of long numbers and letters. People will need a public key to transfer money to you as Key is just numbers and digits; nobody knows your email or name. Private Key is your identity, which should never be shared with anyone.
Now that the world is fighting with a pandemic, and all the businesses are slow, the Crypto market seems to be least affected of all because of its decentralized nature. In the month of February, when the stock market was showing a bearish trend, Bitcoin also witnessed a sharp fall by nearly 57% percent, but it recovered almost 27% of the fall. Bitcoin is the best performing asset for the last one year. Investors currently are looking for the assets that can withstand the slowdown triggered by the COVID19, and Bitcoin offers them the right opportunity.
Grayscale Investments’ Q1 2020 earnings report shows the capital inflows of $503.7 million into cryptocurrency investment products, which is the largest. 88% of the capital was invested by institutional investors, which shows that investors’ interest in the crypto market has not declined yet.
As the crypto market is going to get more mature, and the participation of the investors is now significant, the future of Bitcoin looks brighter.