Lately, a new digital currency called Bitcoin has gained the attention in the market. In comparison with the other currencies (euro, dollar) bitcoin is a digital currency and it is decentralized, there is no authority for the verification of the money. Many enterprises around the world have started to use the bitcoin as a medium of exchange, as well as basing their business models by taking in consideration the bitcoin.
Bitcoin has a big advantage since it is very easy transferable as well as it has a very robust security.
How does Bitcoin works?
Well, Bitcoin is a protocol. The unit of the account is "bitcoints". All of the transactions that are performed are public. The transfer of bitcoins is not physical but simply a new addition, a public transaction to the "chain of blocks". As long as security comes, it is very hard that someone can generate false blocks so he can make a new transaction, meantime it is very easy for users to detect the validity of the blocks.
Lately, we were all witnessing the dramatic rise in the value of Bitcoins. Many medias named it as the currency of the future. The rise in value was very dramatic that the users were tripled. Bitcoin's main exchange, MTGox, is struggling to cope with the rise of exchange. The users started to panic since the Bitcoins were not swapped as fast as expecting (Bitcoin uses complex cryptographic algorithms), so they started to sell the Bitcoins in large which resulted in the drop of it's value.
We need to be in check about the unpredictable future of Bitcoin!
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