It’s called Bitcoin, is a decentralized electronic cash system using peer-to-peer networking which is worrying many governments.
In November 1, 2008, Satoshi Nakamoto posted a research paper to an obscure cryptography listserv describing a new concept and future design for a new digital currency that he called bitcoin. The idea behind Bitcoin is to create a currency that is not regulated, which is free from the interference of governments and is based on cryptography that makes it seemingly unassailable when it’s used.
The key points of Bitcoin are the following:
1. Bitcoin is based on encryption technology which control the transfer of money, instead of leaning to the Central Authorities.
2. All transactions are stored in a distributed database, so they are public, which is used to confirm and toprevent the possibility of spending the same moneytwice.
3. The Bitcoin be easily sent through the Internet, without the need for trusted third parties.
4. It’s safe from instability caused by the central banks. Bitcoin inflation is uniformly distributed through the network, so is not monopolized by banks.
Can Bitcoin Survive? Is It Legal?
Being an independent and fully anonymous currency that worries many countries of the world who fear it could be used for different purposes:
Buying goods or services, use it as a tool for international laundering of dirty money, or as a way to pay anonymously for illegal drugs sold on Silk Road.
In my view, Bitcoin as currency could survive if he can find a way to make better improve transaction for consumers and traders.
This is a short animated introduction to Bitcoin, made possible with donations from the Bitcoin community.
