To help our fast growing world, Bitcoins are introduced as the most appropriate digital currency that is on the flow right now. They are called as the crypto-currency, which works with public-key cryptography for the security of money and transactions. Bitcoins had come about at the beginning of 2009 and was developed by Satoshi Nakaoto. The real reason behind it was to put a halt to the rising de-valuation of the current currency. The system gives worldwide free license to acquire and redistribute the product’s design or blueprint, and also make improvements to it. Of course, this new social change is in the process of its discovery by the public.
Bitcoins, is a new concept to adapt to, but it certainly has emerged as reliable and secure medium. The whole system relies on a shared public ledger known as the Blockchain. Every transfer made in Bitcoins gets registered on the Blockchain. This prevents Bitcoins from being reused. Some users who devote computing powers to maintain the Blockchain earn more Bitcoins in return. This process is called mining by which more Bitcoins are created. Not run by a central authority, the facilitation and transfer of Bitcoins as currency is taken up by open-source, peer-to-peer cryptographic protocol. Hence, this makes it a universal, transparent medium of maintaining transaction.
Bitcoins now can be capable of avoiding the drift in the path of the current money system. They do this by restraining its production, which is limited to 21 million Bitcoins. As benefits, Bits provide security from inflation and taxes on our wealth. Furthermore, it is difficult to associate the Bitcoin transaction with its real owner. Accepting this currency offers an incentive to merchants as the transaction cost is extremely low compared to that imposed on credit card processors. Bitcoins are remarkably safe, simple and cheap, and its authentication system is absolutely intact. Some of its vendors are WordPress, Reddit, and OKcupid.
However, due to the anonymity attached to Bitcoins, they have attracted the toll of the illicit money transaction. In 2013, the FBI shutdown Silk Road – an underground black market, and seized US$ 28.5 million worth of Bitcoins. Also, this currency at times has been subjected to being lost or stolen. Nonetheless, with its few disadvantages, Bitcoins have become the most secure medium of exchange. This new currency will partially control the world after its few decades of completion.