Like many people, you might be a little confused about certain aspects of cryptocurrency like bitcoin and others. Did you know that 1 BTC in NZD is currently $12,640? That’s a lot of money for something that is nothing more than an encrypted code online.
Let’s start with what the purpose of cryptocurrency is so we can understand how this came to be. Cryptocurrency is defined as “a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets.”
In short, the system allows payments to be made without passing through any banks or payment gateways. It is created and kept only digitally; there is no physical aspect of owning a bitcoin.
Why Is 1 BTC in NZD So Much?
Since there is no physical representation of bitcoins, 1 BTC in NZD enables you to trade it digitally. Each bitcoin is nothing more than a highly sophisticated and encrypted code.
Cryptocurrencies are a growing class of assets that has many similarities to regular currencies. The main reason Bitcoin is so valuable is that its primary factor is that no person or authority can control it.
While bitcoin is often used in transactions taking place on the black market, there are many legitimate purposes, as well. Bitcoin is even accepted in NZ casino games like roulette, blackjack, and poker.
Unlike regular currencies like dollars, euros, yen, etc. which have an unlimited supply and banks can issue as many as they like. Some currencies’ values can even be manipulated in relation to others.
The supply of Bitcoin is limited and controlled by an algorithm; only a small number of Bitcoins can be created every hour. The number of Bitcoins will never go over 21 million since that is what the algorithm is set as.
Who Created Bitcoin?
There is a lot of mystery surrounding the actual creator of Bitcoin. It was established that a man by the name of Satoshi Nakamoto was the creator of Bitcoin. Then an Australian entrepreneur by the name of Craig Wright announced that he was Satoshi Nakamoto and had in fact invented the cryptocurrency.
To prove this claim, Craig digitally typed a message using the cryptographic keys associated with the creator. His claim was then backed by experts.
What Is Cryptocurrency Used For?
Bitcoin has gained a reputation for being used as currency on the dark web and other black market or illegal activities. But many companies like Microsoft also accept it as a valid form of payment.
Some financial institutions are attempting to use Blockchain, which is a public ledger that records Bitcoin transactions.
Many leaders in different industries have managed to gain significant benefits. Some include enhanced security, improved efficiency, and reduced costs by using Blockchain technology.
If the demand for Bitcoin increases and the supply remains the same, the value of each one will only go up. While 1 BTC in NZD seems like a lot of money, the future of bitcoin, in theory, shows that number increasing exponentially.