Bitcoin is world’s first consensus network, which enables a new kind of digital payment system and a completely cryptographic money based on computing technology. Bitcoin is the only first decentralized peer-to-peer payment network powered by its users without any centralized authority or middlemen.
From a general user perspective, Bitcoin is termed as pretty much same as cash for the Internet. There is nobody who owns the Bitcoin network just like no one owns the technology behind email.
Bitcoin is basically controlled by all its users from around the world. Which makes it one of the most powerful and innovative currency of all time, if used in positive possibilities.
People who are new to bitcoin technology might be thinking about, is Bitcoin fully virtual, immaterial and anonymous? Here tried to explain those concerns!
# Is Bitcoin fully Virtual and Immaterial?
Bitcoin is as virtual as the credit cards and online banking networks people use everyday. Bitcoin can be used to pay online and in physical stores just like any other form of money. Bitcoins can also be exchanged in physical form such as the Casascius coins, but paying with a mobile phone usually remains more convenient.
Bitcoin balances are stored in a large distributed network, and they cannot be fraudulently altered by anybody. In other words, Bitcoin users have exclusive control over their funds and bitcoins cannot vanish just because they are virtual.
# Is Bitcoin Fully Anonymous?
The Bitcoin’s technology has been designed to allow its users to send and receive payments with an acceptable level of privacy as well as in any other form of money. However, Bitcoin is not fully anonymous and cannot offer the same level of privacy as cash or other previous currencies.
The use of Bitcoin leaves extensive public records. There are various mechanisms already existing to protect its users’ privacy, and more are in development. However, there is still many work to be done before these features are used effectively by most Bitcoin users.
Some concerns have been raised that private transactions could be used for illegal purposes with Bitcoin. However, it is worth noting that it’ll undoubtedly be subjected to similar regulations that are already in place inside the existing financial systems.
The Bitcoin cannot ever be more anonymous than cash and it is not likely to prevent any criminal investigations from being conducted as per the experts. Additionally, this technology is also designed to prevent a large range of financial crimes and scams.
Bitcoin is a consensus network which enables a new kind of payment system and a completely digitalized money. One of the world’s first decentralized peer-to-peer payment network, powered by an open-source project. That makes it easy for anyone to verify the source codes and its worthiness.
Now, you can let us know! what do you think about this modern currency, its virtuality; immateriality; and Anonymity; in reality?