One of the best things about bitcoins is that it is a technology that is completely computerized and does not require any intermediary in the process of transferring money from one place to another. This technology, the bitcoin, has been around for at least eight years now and is still going strong. It was created in the late nineties but has continued to rise in popularity even though there are concerns in the United States regarding illegal transactions involving bitcoins. Some people believe that bitcoins may be a vehicle for drug trafficking and money laundering and this is why the government is very cautious about bitcoins.
In comparison to conventional currencies, bitcoins are relatively easy to transfer because you only need an internet connection and you are able to complete all your transactions instantaneously. Unlike other currencies, bitcoins do not have any centralized government or governing authority that acts as a backstop for the protection of users' transactions. Bitcoins are mined in large quantities by users and they are distributed among the different miners through a process called " Mining". The moment that a group of miners starts mining, the moment that the number of bitcoins becomes smaller, the moment that the supply of bitcoins becomes fixed. This process is believed to occur due to a Limit Break in the transactions. There are also certain risks that are involved in the mining of bitcoins which should be evaluated before you start engaging in the activity.
A major problem that has come up with the bitcoin system is called the double spending wherein an individual uses the same money in different ways. Another big issue with the bitcoin system is called the fungibility issue wherein the anonymity of the transaction is compromised. The bitcoin protocol is considered to be an open source protocol that is developed on the open source software. This makes the bitcoin much more valuable compared to other forms of currencies.