Bitcoin has been a virtual form of currency popular all over the world since its invention in 2008 by Satoshi Nakamoto, which is a contentious fact in itself. It’s a mode of currency linking users directly without the need for a middleman. It has no central system or single administrator and has therefore been recognized as the first decentralized digital currency. As a means of currency, it has been used numerous times for making transactions online.
The main ledger of these transactions is called a blockchain and it is managed by miners. Bitcoin miners are responsible for maintaining the respective blockchains and making sure that they are consistently working. Because there is no central administrator or repository, there is no real way to track what the bitcoins are being exchanged for so they have been used in a large spectrum of mediums; from transactions in legitimate online shops and gambling sites to the more dangerous and very illegal sites on the dark web.
Although the end of bitcoin has been predicted many times before, it would seem that the recent hacks and bitcoin thefts that have taken place are more or less proving these predictions to be true. The safety of bitcoin users was recently compromised in the theft of about five million dollars worth of bitcoins in January 2015. This is reminiscent of previous hacks like the Mt. Gox debacle of February 2014. This resulted in the temporary suspension of the European bitstamp exchange in the hopes of recovering some of the stolen bitcoins.
Hacks like these have been reported over the years and have not done very much to garner the favor of users. Bitcoin saw a major dip in sales post the November 2013 crash, shaving off 75% of the record value set pre the crash over the subsequent 15 months. Since August 2015 the value has doubled from $220 per bitcoin to the $455 mark in December 2015. It would seem that the predicted obituaries are not coming true.
The CEO of Coinanalytics, Fabio Federici stated that “…vulnerabilities in other spaces, like we have seen in the Bitmap case could potentially cause major damage.” In short, if this problem is not resolved, the eventual statistics of bitcoin could be even more worrying than they are now.
Time will tell if bitcoin will continue in this recent trend or be a positive hiccup in the road for the digital currency. Many users stand behind bitcoin and say there is no end. Others predict that it will be soon. As it stands, there are many other digital currencies to trade with all following the same vein. Though not as successful as the mighty bitcoin its problems may either spell doom or blessing for these other companies. Until such a time as this, the world can only watch and wait.
Jesse Ocean / About Author
Jesse Ocean is Ooze Studios' Founder & Managing Director. Together with the Ooze team, he's been helping B2B and B2C clients grow through rigorous ROI strategies.