Can you imagine a thing whose value around 10 years ago i.e. in 2010 was $0 but today in 2020 its value is touching $19,130. This thing is Bitcoin and recently some days ago it just touch its all time high price due to which again it gain attention of Public.
12 years ago, on 31 October 2008, a person whose name was Satoshi Nakamoto published a paper on internet and the motive of Satoshi was first life of that paper which was clear as in that paper it was written that "a version of electronic cash that would allow payment to be sent directly from party to another party without going through financial institution". Crypto-Currency is a digital asset on which there is no control of any type of central bank and financial institution. At one time Crypto- currency was only an idea but now there is a trading of millions on its crypto exchanges. Basically the financial systems in our society is only based on trust as currency, notes are valuable only because it is guaranteed by governments as governments have much control on our money. The original idea of Satoshi was that government should not have much control on our money as Satoshi imagined Bitcoin as alternate financial system which should be based on software technology and out of third party control.
During to Global economic crises in 2008, mega investment bankers like Lehman brothers had become bankrupt and after this scenario, crypto currency born. Bitcoin was the first one which came in market.
Many people use crypto currency as investment and many people use it as alternate currency and there are also many people who want to replace this with other currencies but the main use which most of the people are doing is as investment as people invest there and expect for higher return and in the list of crypto currency Bitcoin is on top. Like other investments, investment in Bitcoin also have some risks and the people who criticise it as an investment form, mostly said that it doesn't have its own value as it is a digital currency. Still Bitcoin is a very niche products which doesn't have wide spread acceptance in society and also not have crypto medium of exchange as you can't buy small things like , bread or eggs with Bitcoin, however this trend can be change in future because in western countries there are many hotels and restaurants which accept payment with Bitcoin.
There is also a technical challenge in this as it is harder to use Bitcoin for daily transactions because it take much time for confirming to blockchain transactions and it takes around 10 minutes for every transaction. But at the same time there are some usecases in which Bitcoin works much better than traditional way and its best example is foreign fund transfer as banks takes much of fees for such type of transfer but Bitcoin is better here because it doesn't take any fees and also take less time than banks.
It is also competing with banks because the fastest way by banks are credit and debit cards but it is much better than that and because of this banks are also not in the favour of Bitcoin. During the pandemic from 1 March 2020 to 30 November 2020 the value of Bitcoin is increased by 120% which is more than double.
Basically this is a good way but it also have much of risks like hacking but may be in future its hype will rise.
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