bitcoin, bitcoins, bitcoin news

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How can Bitcoin change the world? In the age of computers and information technology, everything is getting transformed into digital form. Then why not currency? Bitcoin is a form of electronic currency which is exchanged digitally in the virtual world for effecting real transactions. Most accepted form of money today is currency notes or coin which needs to be physically handed over and/or electronically transferred again to be converted into cash. Bitcoin news brings a paradigm change. It is not only created digitally but also held and controlled by the virtual network. Bitcoin is created electronically through a protocol. Like http or smtp, Bitcoin with capital B is a protocol. The unit of money is 'bitcoin' with small 'b'. The users need to install a Bitcoin wallet (account) on the computer or mobile phone. This generates an address which needs to be shared with the person with whom payment transaction has to be made in bitcoins. Each new transaction will have new address. All the valid and confirmed transactions are reflected in a shared public ledger called block chain. Bit coin has the capability of bringing about immense change in the world. Mode of making and receiving payments become extremely easy. Merely Integrating a Bitcoin server makes one non-dependent on banking networks for making transactions. Money could be sent the way emails are sent - only the addresses change with each new transaction. Importance of banks as a store of money may diminish as it can be stored in computer with any Bitcoin service

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Page 1: Bitcoin, Bitcoins, Bitcoin news

How can Bitcoin change the world?

In the age of computers and information technology, everything is getting transformed into digital form. Then why not currency? Bitcoin is a form of electronic currency which is exchanged digitally in the virtual world for effecting real transactions. Most accepted form of money today is currency notes or coin which needs to be physically handed over and/or electronically transferred again to be converted into cash. Bitcoin news brings a paradigm change. It is not only created digitally but also held and controlled by the virtual network.

Bitcoin is created electronically through a protocol. Like http or smtp, Bitcoin with capital B is a protocol. The unit of money is 'bitcoin' with small 'b'. The users need to install a Bitcoin wallet (account) on the computer or mobile phone. This generates an address which needs to be shared with the person with whom payment transaction has to be made in bitcoins. Each new transaction will have new address. All the valid and confirmed transactions are reflected in a shared public ledger called block chain.

Bit coin has the capability of bringing about immense change in the world.

Mode of making and receiving payments become extremely easy. Merely Integrating a Bitcoin server makes one non-dependent on banking networks for making transactions. Money could be sent the way emails are sent - only the addresses change with each new transaction.

Importance of banks as a store of money may diminish as it can be stored in computer with any Bitcoin service provider.

Since the transaction will be in virtual money, government's role in printing and issue of currency will undergo a great change.

Pace of transactions will become easier and quicker - only 10 minutes will be required to settle transactions (instead of 3 working days required now).

It can be used to make even micro-payments or macro-payments (no lower limits or upper limits).

Since Bitcoin transactions are enforced by cryptography, various frauds can be avoided. Payments made and received do not fall in fake hands. However one has to take required steps to protect their wallets.

Page 2: Bitcoin, Bitcoins, Bitcoin news

Bitcoin usage allows complete transparency. Verification of transactions can be easily done by inspecting the block chain.

Bitcoin usage is almost free - transaction or processing fees are not levied at all. Only faster transaction confirmations invite nominal fees. Thus it cuts costs and such savings are of huge benefit to small business projects especially.

Bitcoin is designed to work all the time and everywhere, so it's availability is uninterrupted.

Financial transactions become accessible to even those who do not have bank account but have mobile phones - such is the power of Bitcoin.

However there are various issues which need to be debated and sorted out before fully launching this system. First and foremost is issue of banks and government losing control of money - it's social, economical and other implications need to be fully examined and weighed before embarking on Bitcoin system. Secondly, various guidelines need to be laid as to how Bitcoin can function as proper financial institution. Thirdly, various gaps and loopholes need to be cemented so as to not allow any fraud (cyber) to take place during numerous transactions.

Despite few limitations Bitcoin does present a case of being a sound protocol. As the technology progresses, these limitations can also be taken care of. Bitcoin which is digital currency without borders does seem to promise a future of efficient social and economic life for the globalised world. For more information, assistance updates on the digital currency Bitcoin head on to http://bitcoin.com.so/ .