Bitcoin is a peer-to-peer decentralized digital currency. It differs from traditional, government-backed currencies in that there is no central issuer, and there are no middlemen involved for various transactions.
Bitcoin is a peer-to-peer decentralized digital currency. It differs from traditional, government-backed currencies in that there is no central issuer, and there are no middlemen involved for various transactions. Back in 1998, the concept of crypto-currency was described by Wei Dai on a cypherpunks mailing list. With a traditional fiat currency (think the U.S. dollar or the Euro), a central bank (like the Federal Reserve) issues currency. That's not the case with Bitcoin. Instead, coins are generated using a process called mining. Both virtual currencies and cryptocurrencies are types of digital currencies, but the converse is incorrect. Like traditional money these currencies may be used to buy physical goods and services but could also be restricted to certain communities such as for example for use inside an on-line game or social network. In contrast, Digital currencies can be used to facilitate payment for physical goods and services in real life, thus, inhabiting similar characteristics to traditional physical currencies in that respect. Furthermore, digital currencies can be used to facilitate payment in-person at physical business establishments. Bitcoin is more correctly described as the first decentralized digital currency. It is the largest of its kind in terms of total market value. Bitcoins are created as a reward for payment processing work in which users offer their computing power to verify and record payments into a public ledger. On 19 November 2013, the value of a bitcoin on the Mt. Gox exchange soared to a peak of US$900 after a United States Senate committee hearing was told by the FBI that virtual currencies are a legitimate financial service. On the same day, one bitcoin traded for over RMB ¥6780 (US$1,100) in China. Any definition of bitcoin as a protocol, a payment vehicle, a currency or an asset must be fluid in order to be accurate, as the definition varies by context and time. As a protocol-currency-asset, however, it can, if held, result in material gains (or losses) subject to taxation. Fiat currency optimizes digital currency as well, even beyond the obvious case of enabling payments to merchants who don’t (or won’t) accept digital currency: Traditional currencies offer a volatility solution for merchants more concerned with payment for goods and services than speculative investment. Bitcoin is a payment system invented by Satoshi Nakamoto, who published the invention in 2008 and released it as open-source software in 2009. The system is peer-to-peer; users can transact directly without needing an intermediary. On 19 November 2013, the value of a bitcoin on the Mt. Gox exchange soared to a peak of US$900 after a United States Senate committee hearing was told by the FBI that virtual currencies are a legitimate financial service. On the same day, one bitcoin traded for over RMB ¥6780 (US$1,100) in China. Digital currency or digital money is an Internet-based medium of exchange distinct from physical (such as banknotes and coins) that exhibits properties similar to physical currencies, but allows for instantaneous transactions and borderless transfer-of-ownership. In contrast, Digital currencies can be used to facilitate payment for physical goods and services in real life, thus, inhabiting similar characteristics to traditional physical currencies in that respect. Furthermore, digital currencies can be used to facilitate payment in-person at physical business establishments. Bitcoin Mining: How Bitcoins Are Created. With a traditional fiat currency (think the U.S. dollar or the Euro), a central bank (like the Federal Reserve) issues currency. That's not the case with Bitcoin. Instead, coins are generated using a process called mining. In the early days of Bitcoin, users used traditional computers to mine for different blocks. Today, miners often use high-powered graphics cards and machines designed specifically for optimal Bitcoin mining. Moreover, there are networks of computers that work together in various pools to find blocks. With a traditional fiat currency (think the U.S. dollar or the Euro), a central bank (like the Federal Reserve) issues currency. That's not the case with Bitcoin. Instead, coins are generated using a process called mining. Digital currency can be defined as an Internet-based form of currency or medium of exchange distinct from physical (such as banknotes and coins) that exhibits properties similar to physical currencies, but allows for instantaneous transactions and borderless transfer-of-ownership. In contrast, Digital currencies can be used to facilitate payment for physical goods and services in real life, thus, inhabiting similar characteristics to traditional physical currencies in that respect. Furthermore, digital currencies can be used to facilitate payment in-person at physical business establishments. Bitcoin is a consensus network that enables a new payment system and a completely digital money. It is the first decentralized peer-to-peer payment network that is powered by its users with no central authority or middlemen. From a user perspective, Bitcoin is pretty much like cash for the Internet. Bitcoin can also be seen as the most prominent triple entry bookkeeping system in existence.
http://mashable.com/2012/11/05/bitcoin-currency/ https://en.wikipedia.org/wiki/Digital_currency https://en.wikipedia.org/wiki/Bitcoin http://www.coindesk.com/forget-bitcoin-vs-fiat-welcome-hybrid-economy/ https://en.wikipedia.org/wiki/Bitcoin https://en.wikipedia.org/wiki/Digital_currency http://mashable.com/2012/11/05/bitcoin-currency/ http://mashable.com/2012/11/05/bitcoin-currency/ https://en.wikipedia.org/wiki/Digital_currency https://bitcoin.org/en/faq
how is bitcoin different from traditional currency