BitCoin, the Future of Currency

Bitcoin, as we all hear nowadays is a form of crypto-currency. Crytography is science that provides security on the data, by encryption and decryption, and ensuring data integrity. If applied to money, we get a currency that is secured and has integrity from fraud. Money is a legal tender and applying the power of internet in financial transactions results in faster and cheaper transactions. Currency is a limiting factor in global trading, as the currency differs in almost every country. US dollar, which is becoming an internationally accepted currency is not exempt from the processing fees for payments and transactions. There is always a charge to use a payment facility of banks and financial companies. Money remittances charged an amount for every transaction made.

The fees goes to the system that does not fully integrate the free and open internet, which makes the wire-transfers slow, fees and interest less bearable, to bank charges that is sometimes unreasonable. The digitisation of the records should make things smooth or even free from transaction fees, but due to lack of a trusted, transparent, internationally accepted and digital currency, we would have to keep on using the system that does not harness innovation.

Bitcoin is transparent in the sense that each coin is maintained in digital ledgers together with all the bitcoins being replicated throughout the bitcoin network to maintain integrity and security of the bitcoin. The protocol for bitcoin is not controlled by any country, a bank, or corporation. The nature of the bitcoin existence relies on the mathematical concepts that makes bitcoin a true international currency. Considering globalisation will make trading closer and cross-barrier, online transactions should be the key driver to bitcoin currency popularity in years to come, since everyone must have access to free and transparent financial system without middleman that charges for transactions that are supposed to be free.