BITCOIN - THE FIRST DIGITAL CURRENCY
Bitcoin is the wold's first digital currency which was created in 2009 by a developer or group of developers known as Satoshi Nakamoto. Even if there's no exact data about the real developer of this digital currency, it has managed to gain huge popularity and trust from people, so now it's used by thousands of merchants and companies, including big names like Wordpress or Reddit.
This digital currency also known as the "currency of the internet" gets more interesting once you find out that it's not issued by any centralized authority, so nobody controls it and physically it doesn't even exist. Bitcoin is a currency which operates easily only through the internet, like a peer-to-peer, electronic cash system.
Even if it's hard to believe, the Bitcoin currency has doubled its value since the economic problems of Cyprus and has attracted a wide range of investors from countries like Spain and Greece. At some point 1 Bitcoin has reached the value of $266. Currently there are over 11 million Bitcoins in circulation and it's estimated that the maximum number of Bitcoins will reach 21 million.
So, if this digital currency isn't operated by any bank or centralized authority, it means that it has a volatile exchange rate and it can bring high risks for those who are planning to invest in Bitcoins. Taken these facts into consideration, there are still many people who consider Bitcoin to be the future of online cash transactions and also a good and secure form of storing wealth.
The main advantages of Bitcoins are that they can be sent through the internet very fast (this is because the digital currency is regulated by software and agreement of users, not by banks or other organizations), the costs are extremely low because there are no fees, they can be used in exchanges, online gambling, shopping etc.
As previously mentioned, Bitcoins got the support of thousands of merchants and companies, therefore you now even have the possibility to use them to buy games, gifts, food, electronic items, online services and even use some exchanges to convert your Bitcoins to USD or EUR. In countries like Germany and Romania, you can even go to a restaurant and pay with Bitcoins.
Online gambling is one of the most important parts when discussing this new digital currency, because these two are related. More than half of Bitcoin transactions are for online gambling and the number keeps growing. Nowadays there are gambling websites, especially with Dice, Roulette, Baccarat, Pai Gow, Blackjack and Craps, where you can gamble Bitcoins. One of the most popular sites is SatoshiDice - which was recently sold for over $11.5 million.
Will Bitcoin manage to evolve and really become a stable internet currency used by millions of people? Nobody knows the answer to this question, but one thing is clear: Bitcoin has revolutionized our understanding of currencies and proved that it can become a real option in the near future.
You may also want to read the following:
Getting started with Bitcoin
Bitcoins and online gambling
What to do with your bitcoins
