Why Bitcoins Are So Controversial
Numerous reasons have emerged over the years making Bitcoin currency so popular and a real media sensation yet a lot of people have not been able to come to terms with bitcoins, this is why there is a need for us to, first of all, provide answers to the question; ‘What Does Bitcoin Mean?’ before going ahead with why Bitcoins are so controversial.
From the year 2011 to 2013, illegal traders adopted bitcoins as their means of money laundering and ultimately made it so famous by buying them in batches of millions of dollars to allow them quickly move money without the law enforcement being on their case. Consequently, this practice skyrocketed the value of bitcoins to over $1000 per coin by the last quarter of 2013, it later fell a bit and fired up again, as of today, it’s present value of $1,289/bitcoin value is just intimidating.
So, what does bitcoin mean in real terms?
Bitcoins are very plain data ledger files known as ‘blockchains.’ The file size of these blockchains is quite small, even smaller than the size of a long text message on a smartphone. Every bitcoin blockchain possesses three parts, the complex one being the private key header log. This is where the digital signature is captured which confirms each transaction for the particular bitcoin file. The other two parts are so simple and comprise the history of who has bought and sold it (the ledger) and its identifying address (of approximately 34 characters),
The signature keys serve as the system security for bitcoins: allowing for every single bitcoin blockchains trade to be tracked and tagged and disclosed publicly, with every participant’s digital signature fixed to the Bitcoin block chain as confirmatory evidence. The digital signatures prevent people from forging bitcoins and duplicating transactions if allowed several seconds to verify their transactions across the system.
It is worthy of note that while every bitcoin stores the digital address of each bitcoin wallet it touches, the bitcoin network does not store the names of the persons who own wallets. In reality, it means that each bitcoin transaction is digitally verified but at the same, totally anonymous.
Bitcoins are entirely virtual coins fashioned to be autonomous for their value, not requiring the services of the banks to store and move the money. Owning bitcoins makes them feel they are physical gold coins: they trade just like nuggets of gold right in your pocket, and they hold value on their own.
Bitcoins can be used to buy goods and services online, or you can stack them out speculating that as the years go by, the value of the bitcoins will keep increasing. This virtual currency is traded from one individual ‘wallet’ to another. Theses wallets are a small single database that is stored on smartphones, tablets, computer drive, or anywhere in the cloud.
Ultimately, Bitcoins are very controversial because they snatch the power of money-making away from the central federal banks, and deliver it to the general public. As a result, middleman banks are totally needless for bitcoins to move, tax men, cannot assess them and the accounts cannot be frozen. To bankers and law enforcement, bitcoins are like nuggets of gold in the wild west’, totally out of the control of financial institutions and traditional police.