Will Bitcoin become our new Global Currency? Whether Bitcoin may become our global currency is a hotly debated topic in both the technology and financial worlds. First we must explain exactly what Bitcoin is and how it can become our new global Currency?
What is Bitcoin? Bitcoin is a virtual, digital, type of currency that uses 'Blockchain" technology for encryption to create and manage the exchange funds electronically. Bitcoin is by definition a "Cryptocurrency".
Bitcoins are produced by people and businesses called "Bitcoin Miners" who use a type of specialized software that solves long complicated mathematical problems to create unique blocks in a chain on a ledger to add to the Bitcoin Blockchain.
A Blockchain is a kind of electronic, computerized public ledger. This activity creates a Blockchain that organizes and records and distributes or transfers the bitcoins from one person or business to another. The Blockchain enables each transaction to be unique and therefore verifies each transaction mathematically on the Blockchain.
This may all seem to be a bit complicated but it all actually makes perfect sense when you think about it. Bitcoin is a Global Currency which is not controlled by any government. The Bitcoin network is built up of miners who keep the currency secure and each transaction is verified. Miners are paid in Bitcoins and act to verify each Bitcoin transaction on the Blockchain.
The magic of Bitcoin is that it enables quick and low cost transactions like online payments or international money transfers without any need for companies like Paypal or Western Union or any commercial bank or money transfer service.
The best part is the low fees on each Bitcoin transaction. Bitcoin transactions do not require proof of identity and will not need you to provide any personal information to any bank or to any government agencies for that matter.
Bitcoin was originally though to be an underground cyber-currency used by gun runners and drug dealers on the famous underground Black Market Website known as "Silk Road". But that has all changed recently. The U.S. Government took down Silk Road and put all the bad guys in jail. Since then Bitcoin has become more main stream as some of the nations largest banks are investing heavily in the Currency.
Bitcoin has become more accepted by companies like Microsoft, Dell, BofA and Wells Fargo adopted the currency. Now Bitcoin transactions are not only online, they are global. Bitcoin is being used by huge corporations for instant trade transactions.
What does the future hold for Bitcoin? We would like to hear your opinion on this
Ripple is trying to fill these shoes but I wouldn't trust it as its cetralized. Thy could flood there own market.