The world is changing rapidly in the recent times and so is the currency system. With the usage of cryptocurrencies like Bitcoin in vogue people are curious to gauge the possible future of Bitcoin which needs to be ascertained and backed by facts and shrewd rationality.

In the year, 2009, there was a new currency concept that was introduced in the financial world. It was a little confusing for people, but within a span of a year or two, it emerged as a trend. Today, more and more people and business ventures are using Bitcoins for various reasons. The digital currency is still undergoing regular updates to make improvement in every way possible.

A Brief about Bitcoin

Bitcoin is a cryptocurrency, which means it’s not sponsored by any government and exists only electronically. Although it’s becoming increasingly common to be able to buy things with bitcoin, if you want to take profits in bitcoin, you must translate them into dollars.

To create a bitcoin — a process called mining — you need to be able to answer increasingly complex mathematical problems. Bitcoin mining requires extremely fast computers and sophisticated software, as well as a great deal of electricity. Bitcoin is limited to about 21 million total coins.

Bitcoin transactions are secure because they use blockchain technology — a type of database that stores information sequentially across many different computers. Transactions are permanently viewable and available to anyone.

To use bitcoin, you need a “wallet” — a piece of software that allows you to transmit bitcoins between users as well as your bank. Your wallet has a password; if you lose your password, you lose your bitcoin. There is no “reset my password” feature if you forget.

Trend in Bitcoin Price

With all the historical trends and price fluctuations, Bitcoin had a solid start to 2021, hitting an all-time high of nearly $65,000 in April. But the digital coin closed out the first half of the year down about 47% from its record — and several looming risks could result in further pain ahead. other investors are wary about wild volatility in the market and what it means for their portfolios. With that in mind, here are five of the biggest risks facing the cryptocurrency as we enter the second half of the year.

Can Bitcoin be Exchanged for Real Money?

Bitcoin can be converted to cash in a couple of different ways. You can sell bitcoin on a cryptocurrency exchange like Coinbase or Kraken. The cash will be deposited directly into your bank account.

Bitcoin ATMs are rare, but if there is 1 near you, you can exchange your bitcoin for cash. And some websites allow you to sell bitcoin for a prepaid debit card.

Pros and Cons of Bitcoin

Like every financial instrument, there are both Pros and Cons for Bitcoin:

Pros of Bitcoin

• You genuinely have full control over the money and can send and receive any amount 24X7. This is possible because the transactions are not executed by central or commercial banks or any centralized organizations.
• The blockchain technology used in Bitcoin is a decentralized and secure method to conduct transactions, bypassing traditional fees charged by banks and financial institutions.
• The transaction fee is minimal as compared to any other online money transaction. The mining service that records the transactions on the concerned blockchain charges the fees in reality, and that is quite low.
• Since no personal information is traded, it is the most secured way of transacting money. Furthermore, there are no hassles as well.
• With the minimal processing cost, everyone can depend on the reliable and the fastest way of transferring money.
• Bitcoin is not affected by the price fluctuations in any of the global economies, unlike other currencies.

Cons of Bitcoin

• Not Regulated: The bitcoin market currently operates with no major regulations. It isn’t taxed and governments
• Volatility: The stability in the Bitcoin price needs to be focused with more number of people and businesses using crypto currency.
• Threat of online hacking. Hacking is a big threat facing a bitcoin investor as Bitcoin are traded completely online using a mobile app or website.
• Limited Use: There is no assurance on the purchasing power of Bitcoin yet, which could be provided to the investors or users.

Though Bitcoin is based on one of the best technologies – Blockchain. But still Bitcoin is failing to be the future of currency or financial instruments because of one major drawback – lack of any underlying asset that determine the value of Bitcoin. It only gets its value based on the demand or willingness of someone to buy it.

However, the future of Blockchain technology cannot be ignored. Blockchain is an emerging technology which is being implemented in different industries like Financial markets, Cyber security etc.