One of the newest developments in global economics, bitcoin, has completely changed the way people look at the future of global currency. Bitcoin is one of the most exciting and controversial additions to the financial market. This online currency came into the market in 2008 when ‘Satoshi Nakamoto,’ a pseudonym for the peer-to-peer currency creator, introduced his ‘coin’ to the world. 

 

This online-only currency has lived outside most people’s reality until recently.  Previously known to gamers, crypto farmers, and other deep web enthusiasts, bitcoin is a form of money generated and transferred using cryptographic tools instead of central government financial authorities. Bitcoin remains separate and independent from national interests where the value or “worth” of the ‘coins’ fluctuates and is resistant to inflation.

 

Bitcoins are virtual commodities similar to cash. Although they are not a physical currency, they work similarly. Exchanged and mined through cryptography means and peer-to-peer networks, bitcoin is the first currency without a central issuer or backing financial institution.

 

When bitcoin first entered the market, they were exchanged through bitcoin forums and were popular commodities for people looking to make anonymous sales transactions on the web. Mining for bitcoins is a competitive way for people to earn bitcoins using computers to solve complex math puzzles. The bitcoin movement’s founder(s) created the currency to remain outside any government regulation to become a catalyst for political and social change worldwide. 

 

Within two years of the release of bitcoin, it became embraced by a greater percentage of the global population, allowing entrepreneurs to develop new versions of the currency and trading platforms. Included in these trading platforms are methods for foreign exchange. Every exchange service has preset stipulations and regulations for trading since the currency is intangible and has no rules assigned to a financial institution’s transactions. All bitcoin earnings are stored in a ‘digital wallet’ stored in the cloud or on a user’s computer. Imagine the digital wallet as a virtual bank account that allows the owner to send and receive bitcoins, save bitcoins, and pay for goods or services with bitcoins. 

 

When completing transactions with bitcoins, the only record tracked is the bitcoin wallet ID, making bitcoin a convenient option for people who want to buy or sell illegal goods or services and those looking to remain anonymous when making deals online. Recent government-backed seizures of bitcoins have caused a fluctuation in the values. In 2017, bitcoins’ price jumped into the thousands per unit, and the exchange rates of some bitcoins can be over tens of thousands of dollars per one bitcoin. To find the current values and exchange rates of bitcoin, there are various software packages available along with online resources.