Bitcoin is growing in a fast pace with around 12 million Bitcoin wallets by November 2013. This first ever decentralized crypto currency was published by Satoshi Nakamoto in 2009. He left his virtual presence in 2010 leaving many concerns behind. Even his name SATOSHI NAKAMOTO is believed to be coined from few companies Samsung, TOSHIba , NAKAmichi, and MOTOrola!!!!!!!!
The transaction in Bitcoin has grown tremendously over the years and even banks are speculating that Bitcoin will replace real money very fast. The concern is that Bitcoin is created in such a way that the number of Bitcoin will never exceed 21million and 75% is already been created. The value of Bitcoin in 2011 was $1 but it has risen to $ 140 recently.
This currency system is very much unlike the normal currency system and it does not have a Central Bank or central repository. Surprisingly Bitcoin economy will never come across deflation since it is not standard monetary unit of measurement of value/cost of goods, services, or assets.
For the beginners Bitcoin is surely a complex product it exists in a virtual world, and is a peer to peer currency. A currency generated through open source code with all the features of a currency. Operating in Bitcoin market requires strong technical know-how.
If you have to make an online payment the recipient company ABC will create a new Bit coin address and directs you to send it from your digital wallet which you have stored in your computer. The 2 keys are private and public key generated by the ABC company
This private key ie the Bitcoin address created by the company ABC is known to ABC only, and the public key is visible to all in that Bitcoin network. The donor has the benefit of being anonymous. The private key is signed electronically by the Bitcoin client and it can be verified by the public key. The entire transaction is broadcasted to the entire network
Bitcoin is called as a crypto currency because it uses encryption for the safe and secure transaction. This peer to peer network connects a group of computers allowing all the users to share the information visible to the group.
Chinese central bank banned financial institutions from Bitcoin transactions since the virtual currency soared in its value and investors planning for huge investment on this. People’s Bank of China has slammed Bitcoin as a currency with no meaning.
Bitcoin is growing despite of all the speculation and the first Bitcoin ATM was opened in Canada in October 2013. But this virtual currency is not free from the bugs and in March 11 2013, there was a technical block happened between node running software version 0.8 and 0.7 caused a Blockchain fork forming separate ledgers for software version 0.8 and 0.7 where the entire Bitcoin transaction all around the world is shown in one ledger. The prime and crucial difference being a decentralized currency was in question by this software issue.
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