Imagine the world with full of technologies of not having no banks, no ATM’s, no in person transactions. That is how the world is going to be in couple of decades.
Welcome to the world of “Virtual Currencies” where you do not need banks, no ATM cards, and no fees to third party vendors. This virtual currency is called as “Bitcoin”. The currency is not physically present, no banks and everything is run through a secured algorithm where the transactions will happens peer to peer without any middle vendor. These transactions are highly encrypted and it takes years to break this algorithm.
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| Bitcoin |
Now days I have seen these virtual currencies are being accepted in most of the online payments/shopping like: Paypal, ebay, Overstock.com, Namecheap.com, Zynga etc…
It is not to my surprise that even the car companies are accepting Bitcoins and delivered the car for bitcoins payment like TESLA.
There is a risk for public to purchase these kinds of virtual currencies and keep it for a while. Because, it is kind of gambling that person can play with his extra money if you seriously want to take risk at this investment.
In Nov 2011, the conversion price of 1 bitcoin was USD $3, then the conversion rate surge more than USD $1000 for 1 bitcoin due to different online retailers started accepting this virtual currencies to cut down the middle vendors.
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| Dell is accepting bitcoin |
What are bitcoins?
Bitcoins are a type of decentralized virtual currency, meaning they are not issued or backed by the United States or any other government. They are also unregulated and uninsured, which means that consumers and businesses alike have limited recourse if they have a problem. Unlike the dollar, which is legal tender, no one is required to accept bitcoins as a form of payment.
While not tangible currency, bitcoins are bought by transferring real money through an exchange or to an individual, and are stored on computers or held by the purchaser or a third party in a so-called virtual wallet. Once the bitcoins are in your virtual wallet, you can use them to purchase items from any merchant willing to accept them or sell them to someone willing to buy them.
How are bitcoins made?
Bitcoins are created through a sophisticated computer algorithm that requires extensive computer power. Creating new bitcoins is called “mining” and is something that is not available to the average consumer.
Basic Facts on Bitcoin:
It’s a high-risk currency because of the volatility in its price.
It’s not backed by any central banks worldwide and has no tangible value.
It’s an experimental concept.
It’s unregulated and does not provide protection for consumers.
Consumer disclosure rules and regulations are limited or nonexistent.
It is not insured or backed by any government or regulatory structure.
No company is required to accept bitcoins as a form of payment.
