Bitcoin - All You Need To Know About Virtual Currency

Bitcoin – All You Need To Know About Virtual Currency

By in Forex Trading on July 31, 2014

Bitcoin was invented and introduced to the E-commerce world by Satoshi Nakamoto in the year 2009. Basically, this is an open-source software, a payment system, which is designed for online shopping and for different types of monetary transactions.


The Bitcoin currency is used for paying and making online transactions. This virtual currency is actually a variant of Crypto-currency, which was designed and developed to secure monetary exchange online.

The invention of Bitcoin was based on principles of cryptography, which is a practice and study of methods that are used to secure communication between two parties from the third party (In this practice the conversation between two parties is coded in a language, which is unknown for the third party).

This payment source was invented for online purchase and sale of products and services. It is used to make the payment processing work of online platforms secure and convenient. This peer to peer payment system does not have a central repository or a single administrator. The US Treasury define it is as a decentralized virtual currency but according to media reports Bitcoin is a crypto currency.

Application And Popularity Of Bitcoin

The use of Bitcoin for payment of products and services purchased online has drastically amplified in the last few years. The reason behind this is the increases in the number of companies who are now a part of e-commerce world who accept virtual currencies.

Nowadays most of the companies are registering to make use of Bitcoin for payment processing because there are no charges for monetary transactions. According to experts the use and popularity of Bitcoin is likely to increase in the coming years due to the expansion of E-commerce world.

Therefore this payment system has a very bright future in the business world and is expected to develop and evolve in the coming years.

Benefits Of Using Bitcoin

Bitcoin is free from any external interference and government regulations because it is a decentralized payment source. This virtual currency is created digitally through a procedure which is popularly known as mining.

This process involves solving of extremely complex crunch numbers and algorithms. Mining can generate as much as 25 million Bitcoins within ten minutes. However, according to the standard limit only 21 million coins are mined at once.

Transaction anonymity is another major benefit of Bitcoin, there are many more factors that have contributed in making Bitcoin popular in the E-commerce world. Therefore if you are a part of the E-commerce, then choosing Bitcoin can be a very profitable deal.

In this article the author has elaborated about the invention of virtual currency and its use in E-commerce world. Herein the author has also introduced about few benefits of Bitcoin. Source: http://bit.ly/1od8oo0


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