Bitcoins – Written by Ashfaqur Rahman

This is the new kid in the block.

Bitcoins are a form of cyber currency which provides the owner the opportunity to make transactions anonymously. This is a form of currency which does not exist in the real world and it exists in the virtual world in the form of gold coins. These coins can only be mined by solving very hard mathematical problems. These coins are controlled by the network and the government has no role in its formation and transactions.

The programming of the Bitcoins is such that the circulation will not exceed more than 21 million and the limit will be reached in 2140. After, 2140 if anyone transacts in Bitcoins the network will automatically reject it as fake.

To own the bitcoins first a wallet has to be created in sites like Blockchain.info, then the person ha to pay some hard currency to get them. The bitcoins can be stored in the wallet and later sold. One of the biggest advantages of these coins is that they can’t be duplicated as the network will automatically detect it. This works on a peer-to-peer payment system.

The inventor of this unique system of payments is person with the pseudonym Satoshi Nakamoto.

This concept first appeared in a academic paper in 2008 but it took time before the concept took off.

The people are accepting this form of payments because others accept it to.

At present, the price of 1 bitcoin has rocketed to 900$/coin from 1$/coin as a lot of people want a share of the pie for the purpose of selling it afterwards.

However, the economists and governments are not yet decided whether to accept these form of cyber payments with some governments recognizing it while others are yet to decide.

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