Bitcoins are a fairly new concept for e-money and more precisely they are a crypocurrency. The concept has gained immense popularity during the last few years and it is slowly becoming more and more mainstream. The reason lays in the successful combination of its security, complete transparency, user control and independence of any central regulator such as the bank or a credit card company. Bitcoin cyber currency is controlled entirely by its customers and the P2P distributed system by which payments are transferred is heavily encrypted.
Bitcoins are a Storage of Wealth
It has been almost five years since Bitcoin project inception in 2009. Being worth pennies at the time, today, the market capital of this digital currency has exceeded 4 billion USD. Although there were times when bitcoin value had dropped, recently it has been climbing up hitting the record of more than 400 USD per bitcoin as of today. Bitcoin prices are being regulated by free market based on demand-supply proportion: many people choose to buy bitcoins hoping their value with increase in the future. A new organization called “Bitcoin Investment Trust” was launched in 2013 to enable investors control their funds in bitcoin currency and monitor the activity without taking unnecessary risks.
Bitcoins Are a Money Transfer Protocol – Quick, Cheap and Secure
Bitcoin transfer system is an open source protocol which enables safe and swift peer-to-peer transactions. Avoiding the challenges of dealing with third parties such as paypal, credit cards or bank wire transfers, it saves time and money for all participants. The unique electronic nature of bitcoin encrypted protocol has several major benefits. Payments are made within 10 minutes to any part of the globe at very low fees. Since no merchant account is necessary, there is a high level of anonymity; the only information revealed is the customer’s digital wallet bitcoin address. Once the transaction is successfully processed it is irreversible, preventing common e-frauds such as chargebacks or refund claims. Altogether, over the years since its creation the bitcoin system proved to be reliable, sustainable and user-friendly.
Your Bitcoin Savings Are Safe, Controlled Only By You
Bitcoins are the first encrypted decentralized currency, which means it has no central authority to control or manipulate the virtual cash in any possible way. Once bitcoins are stored in your wallet – digital, offline or hybrid – they rest safely there, and, unlike with state-controlled money, no organization is entitled to intervene, seize or charge your savings. The Cyprus crisis in 2013 is a live example of that when it became evident that in certain circumstances a digital currency is safer than funds stored in a bank.
The value of bitcoins is determined by the law of supply and demand and the number of entire bitcoins circulating in the market is limited to 21 million. Therefore, there is no threat of inflation: after reaching its top amount new bitcoins will never be mined.
Bitcoins unique technology and monetary approach raise global interest triggering investors, business owners and consumers to acquire more digital cash for different purposes. Consequently, this virtual money is likely to become the leading worldwide currency in the near future.