What and Why Bitcoins

Abstract

Bitcoin is digital money that is rapidly gaining popularity as a payment system. Bitcoin is a virtual currency that can be generated through complex computer software systems with solutions shared on a network. Hardly three years into its existence, Bitcoin has already become world's most expensive currency. Bitcoin is online currency that can be exchanged in virtual tokens fo r goods and services at places that accept it, similar to payments you make for purchase of goods and services in cash. Bitcoin has no serial number or any possible mechanism that could be used to trace it back to a buyer or seller. Bitcoins are not regulated neither they are real money and not backed by one and nothing. When you draw a cheque for payment of money from your account, it is withdrawn from your account towards payment by transferring from your bank. In case of Bitcoin, there is no central authority or middlemen involved other than the users that comprise the network itself. There is no central authority or middlemen involved in this peer-to-peer payment network. Money goes straight from you to whomever, through the Bitcoin P2P system, with no intermediary agency passing along the chips. Bitcoin is generated in the air and the process is known as "mining". Bitcoins are not government issued currency but they are digital currency issued by private parties and only circulates over the Internet. Bitcoin as digital currency accounts offer global users convenience and freedom by permitting the electronic movement of funds from anywhere in the world using a personal computer or mobile device. Bitcoins provide financial freedom and opportunity to individuals and global business. The present paper has been covered to know the Bitcoins, the identification of different Positive Effects, to present Negative Effects, to highlight the Opportunities and Challenges of Bitcoins and to present an overview of Bitcoins