Bitcoin is the number one trending topic in the global financial industry these days thanks to the fact that it reaches heights that no one thought is possible. At the moment, Bitcoin is as valuable as gold and many experts even believe that its value will rise more and possibly reach $100,000 by the end of 2021, which would be historic.
The technology that powers this cryptocurrency allowed it to become superior when used for online payments. Bitcoin provides its users with a greater level of security, instant online transactions let its users void fees by excluding banks, but most importantly – it gives them a chance to make a profit. Some research showed that there may be as many as 100,000 who earned more than $1 million by trading with Bitcoin.
Speaking of its technology, we wanted to take a closer look into it in this article. We’ll be seeing every advanced piece of technology that powers its network and allows it to maintain its stability, even though Bitcoin is a highly decentralized and self-sustainable cryptocurrency. Let’s dive into the details.
AI in Trading Sites
Since we mentioned trading, we’ll start from that area first. You are probably familiar with the fact that the most preferred platforms where users trade Bitcoins are trading sites. They operate online, which makes them easy to access. Not only that, but they have an additional service that helps traders maximize their profits.
One of the most reputable trading sites that have this service is the Bitcoin Rush, so we’ll take them as an example. This platform utilizes advanced AI systems that can analyze the market and collect all relevant data concerning Bitcoin. This data is used to make accurate predictions on its price in the near future.
The results are shared with traders who are looking to sell their Bitcoins. In doing so, their chances of maximizing their profit are increased as they have a very powerful tool that allows them to battle Bitcoin’s high volatility rate.
Blockchain is the main technology that powers Bitcoin. Thanks to the blockchain, the need for banks has been excluded and Bitcoin can have a peer-to-peer focus. The blockchain is a log in which every Bitcoin transaction is stored and it can be viewed by any user at any time. If you are wondering how the blockchain is updated, it is done through mining.
Mining is probably the most important part of Bitcoin as this process requires users to record and verify transactions which are later integrated with Bitcoin’s blockchain. Mining requires people to have powerful software devices. They solve various complex puzzles.
Since mining is free and miners receive Bitcoins as rewards for each transaction that they record, it is the most cost-effective option for those that are looking to trade Bitcoins and make money. It is also worth mentioning that every mined transaction that is integrated with the blockchain is known as a block.
Earlier, we mentioned that one of the advantages of Bitcoin is security. Well, Bitcoin manages to keep its users safe by providing them with a certain level of online anonymity. That is done through a method called cryptology. This technology takes the user’s data and transforms it into codes before it is sent through the servers.
Finally, we have the halving events, which are considered as the total opposite of mining. They date place every 4 years and their task is to make mining far more difficult, this cut the circulation of Bitcoins into the network and make sure that it is not overflown with Bitcoins.