Bitcoin is a software-based online payment system that was first introduced in 2008 by, Satoshi Nakamoto. Then, in 2009 it was introduced as open-source software. With bitcoin you can make payments and transfer funds all electronically and online. This has led the US Treasury to call it a decentralized virtual currency. It is the first of its kind that is powered by users without a central authority or middleman. Bitcoin is basically cash for the internet. In addition, is can be viewed as the most prominent triple entry bookkeeping system in history. Since bitcoin is an open-source it gives any individual the opportunity to go and review the code. No one person owns it. The most popular client is kept up with by a bundle of open-source developers. In addition, bitcoin verifies transactions with the same high tech encryption methods that are used in government and military applications.
You can also feel secure when sending and receiving bitcoins as there are many security measures that are in place to make sure nothing gets stolen. Bitcoin payments can be made without attaching any personal information to the transaction. This alone offers a very strong protection from identity theft. There are numerous advantages and disadvantages when it comes to using bitcoins. Some advantages are that it gives you payment freedom, there are very low processing fees, it has fewer risks for merchants, excellent security and control and it is completely neutral and transparent. With those advantages comes some disadvantages as well. Those range from acceptance as many people still don’t know about bitcoin, volatility and the ongoing development of it. Bitcoin is still in developing stages with some factors still being in active development. However, even with the disadvantages people still trust bitcoin due to the fact that it really requires no trust at all. Anyone has complete access to the entire source code anytime the want it.
Bitcoin is just like cash for the internet. You can keep your funds in an online wallet and make transfers to other users for a very small transaction fee. It is also free to actually use the bitcoin network, minus the minimal fee you pay for transactions. Also, they can be used in any country. Sending bitcoins is as easy as sending an email and you can use them to buy anything. If you are not comfortable using your own Bitcoin wallet, you can use services like a Bitcoin bank.