Bitcoins are internet-based currencies and an internet-based medium of trading and exchange. It is known as a virtual payment system for online transactions and work. It is rewarded for work done through the internet and it is equivalent to a certain value depending on the currency that you want to be exchanged for it. Bitcoins can also be obtained in exchange for products and services and not just currencies. Users transact directly with each other and do not require an intermediary. It is a decentralized virtual currency according to the US Treasury because it has no single administrator. This is also why it is sometimes called cryptocurrency.
Bitcoin is not all positive, though. Criminals have gotten hold of this software. This has attracted the attention of many financial regulators and legislative bodies. The use of bitcoins has been found to be used for black market activities and theft, but the US government still acknowledges bitcoins as a legitimate financial service.
Where It Started
Bitcoin was invented by Satoshi Nakamoto, who published the invention on 2008 in a research paper. The paper was called “Bitcoin: A Peer to Peer Electronic Cash System.” It was released in 2009 and was implemented as an open source code.
The first contributor and receiver of the first Bitcoin transaction is programmer Hal Finney. He downloaded the bitcoin software the day it was released and as a result, received 10 bitcoins from the inventor Nakamoto. This was the world’s first bitcoin transaction.
Websites began accepting bitcoins in 2013. Some foundations, organizations, and charities also accept donations through bitcoin.
Progression
There are a lot of bitcoin startup companies all over the world, and one of them is LocalBitcoins, a startup company based in Finland. It facilitates over-the-counter trading of bitcoins to local currency. This works as a give and take system, since some users post advertisements on the website, where they state and post exchange rates and payment methods for those who are buying or selling bitcoins. Those who are interested reply to these advertisements and they can agree or make a deal with the person selling bitcoins and buy them with cash or pay through online banking. The company also offers a feedback feed for users and a conflict -resolution services.
Bitcoins are deemed an important part in the internet transaction world and has slowly evolved to being an important part of online networking.