From barter system to gold coins, from
currency notes to plastic money; the transformation of the currency has always
worked on the theory of change. As the world is turning towards cloud-based
computing, the latest transition of denomination is virtual or crypto-currency,
the Bitcoin. The Bitcoin, a new digital sensation, which is a giant leap in the
online payment system with its easy and quick payment features.
Image Courtesy: Google Images.
It is a unique currency of the internet just as every country has its own.
Bitcoin is basically a fund used to make online payments to
individuals/companies and purchase online products. Just as a wallet is where
we keep money, Bitcoins are stored in a digital wallet called a coinbase, which
is also used to send and receive payments secured by a password. Its main
feature is that it is a secured transaction as every payment is recorded in the
publicly shared ledger called the block chain and all these transactions are
confirmed and verified through miners. The most prolific safety feature is that
a Bitcoin cannot be reproduced or spent more than once. The processing fees and
charges for Bitcoin are almost negligible.
The debatable part is that it has no bank or other such organisation to keep a
tab on transactions. But this has helped in payments as fast as around ten
minutes. The payments are irreversible, once made cannot be revoked. This has
resulted in banning of Bitcoin from some of the major countries.
In such a small time Bitcoin has also became a gamblers bet. From its value of
$13 to over $1000 in a time span of just one year is what has heated its
popularity. But this currency does have its other side. The new creation has
given an edge to illegal activities like illegal gambling and purchase of
illegal substances like drugs. As our wallets are vulnerable to theft,
Bitcoin wallets too are at risk as well from hackers.Earlier this year, an
operator of a US Bitcoin exchange was arrested for money laundering.
The best way to avoid the negatives of Bitcoin is to exchange the same
for a national currency as Bitcoin values are highly volatile. Bitcoin must
always be purchased only as much as necessary and quickly disposed off unless
inclined otherwise.
From barter system to gold coins, from
currency notes to plastic money; the transformation of the currency has always
worked on the theory of change. As the world is turning towards cloud-based
computing, the latest transition of denomination is virtual or crypto-currency,
the Bitcoin. The Bitcoin, a new digital sensation, which is a giant leap in the
online payment system with its easy and quick payment features.
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The debatable part is that it has no bank or other such organisation to keep a tab on transactions. But this has helped in payments as fast as around ten minutes. The payments are irreversible, once made cannot be revoked. This has resulted in banning of Bitcoin from some of the major countries.
In such a small time Bitcoin has also became a gamblers bet. From its value of $13 to over $1000 in a time span of just one year is what has heated its popularity. But this currency does have its other side. The new creation has given an edge to illegal activities like illegal gambling and purchase of illegal substances like drugs. As our wallets are vulnerable to theft, Bitcoin wallets too are at risk as well from hackers.Earlier this year, an operator of a US Bitcoin exchange was arrested for money laundering.
The best way to avoid the negatives of Bitcoin is to exchange the same for a national currency as Bitcoin values are highly volatile. Bitcoin must always be purchased only as much as necessary and quickly disposed off unless inclined otherwise.
