Bitcoin (BTC) is a virtual currency, designed in 2008 to work as a medium of interchange to safeguard financial transactions, regulate the formation of additional units, and validate the transfer of funds. It is basically a computer file that is cached in a digital wallet application on a Smartphone or computer which can be sent and received through the digital wallet only. The worth of a bitcoin is determined by the supply and demand. The higher the demand, the more valuable it is, and vice versa.
The prime feature of bitcoin is that it’s not controlled by the government or banks and one can also spend their bitcoins incognito.
Despite its relatively short history, bitcoin is inevitably turning out to be the largest digital economy as it currently ranks among the top 30 currencies in the world. Its market capital is estimated to be at around $183 billion, in nearly a decade of existence and is presently down by 50% from its all-time high.
It is 29th in the list by surpassing the supply of Colombian Peso, which has been around for more than three decades now. In late December 2017, one bitcoin was coequal to around $20,000 and its market capital was above $320 billion. 1 BTC is valued at just over $8000 in the present-day. The same correlation showed the USD 20 times more valuable when the BTC price was around $500.
Satoshi is the smallest recorded unit of bitcoin. 100 million Satoshis make one bitcoin or one Satoshis represents bitcoin to its eight decimal (0.00000001 BTC). According to a report by CryptoPotato, a world-leading news media on digital currencies, 1 Satoshi is more valuable than certain regional fiat currencies namely: Iranian Rial, Vietnamese Dong, Indonesian Rupiah, Guinean Franc, Sierra Leonean Leone, Laotian Kip, and Uzbekistani Som.
Bitcoin’s expeditious development over the years has made the crypto-currency a force to be reckoned with in the global economy. In fact, the consistent downswing of the buying power of the USD hoist questions of whether one should keep its increasingly valuable Bitcoin while spending the declining dollar.