Bitcoin is a virtual currency which involves money reserved in a digital bank account. The Bitcoin currency is one of the cryptocurrencies which has become popular since 2009. Like banks have owners, Bitcoin has a developer and the value of Bitcoin is accordingly controlled by its developer.

Bitcoin is virtual money is internationally accepted and we can transfer it using only the internet without the need of visiting a bank or signing cheques. Using Bitcoin exchanges, it can be exchanged with different currencies and then can be used to buy commodities as from a US dollar. Bitcoin’s transfer is protected through encryption which allows this money to be securely used in buying and selling over the Internet.

Alarmingly, the security of Bitcoin is a risk because the Bitcoin is kept in owner’s personal virtual account. There have been instances when websites owning Bitcoin exchanges were hacked and an enormous amount of money was stolen. People can use this currency to buy anything without letting others know. Due to the anonymity, it can buy anything which your country laws may not allow.

Many countries are accepting Bitcoin and contemplating the regulations. Bitcoin is still a new technology and many of its aspects remain to be explored. However, Bitcoin being exempt from international and local tax regulations is a cheap alternative to other currencies. It is also becoming a widely accepted technology than another banking system in the real world. This fact aspires a possibility that Bitcoin may become a reliable virtual currency if the developers continue to update the technology and strengthen the security of the Bitcoin wallets.

The future of Bitcoin is uncertain but it may amaze us one day and be the source of all money transfers and exchanges around the globe at Many economists think there is a possibility that this currency might become the future shape of our present banking systems.