For some experts Bitcoin is the Future Virtual Coin, Bitcoin is a so-called virtual currency that has been devised for anonymous payments made entirely independently of governments and banks. In recent years, Bitcoin has generated a great deal of attention on several fronts. Bitcoin payments are based on a new interesting technical solution and function differently to traditional payments. In certain payment situations, Bitcoin can bring advantages in the form of lower costs, rapidity, anonymity, etc. over traditional payment methods.
What is Bitcoin?
However, usage can also be more risky because Bitcoin is not directly covered by the laws that govern other payment mediation. Weak consumer protection is also a reason for why it may be difficult for Bitcoin to become generally accepted and viable as a means of payment. Use of Bitcoin for payments is low today, and although Bitcoin’s future is uncertain, it is an interesting innovation worthy of description.
Is Bitcoin responding to new needs?
Many areas have undergone rapid technological progress in recent years. Our needs in terms of making payments are also undergoing transformation. For instance, households are shopping online to a growing extent, and the amount of cross-border payments is on the rise. Payment solutions, especially for person-to-person payments, have however not evolved as quickly. Bitcoin can be seen as a response to the lack of such payment solutions and has often been a topic of discussion in the media, at workplaces and among friends in recent years.
Various factors have evoked curiosity about how the currency works, such as the supposed anonymity for users, the fact that banks are not involved in the payments and the ability to make payments worldwide. At the same time, it is difficult to understand what Bitcoin really is, and how it works.
Here is a short video that explain what Bitcoin is and how does it work in general.