Everything You Need to Know About Bitcoins

Back to Blog  •  Posted on July 17, 2014 by admin

Nothing seems to stir up more controversial discussions on Facebook than the Bitcoin. Everyday, it seems that people are either proclaiming the incredible investment opportunities or downfall of society posed by this new form of online currency. Bitcoin is a form of digital currency that was created by an individual who has remained anonymous. Part of the thrill behind the Bitcoin is trying to figure out who the original creator of this currency is.

Commerce Driven by the Internet

Bitcoin has succeeded as an online currency due to the manner in which commerce is now driven by the Internet. The makers of Bitcoin capitalized on the fact that no currency solely dependent on the internet’s economy existed. Bitcoin only exists in the form of a digital currency and is stored on computer networks.

A Lack of Taxation

Economists, government regulators, academics and business gurus have struggled to assess the exact nature of a bitcoin. Because bitcoins have an ambiguous identity, many countries do not impose taxes on them. The U.S. has recently required that individuals pay taxes based on the amount of value that they have in bitcoins. Part of the reason people love bitcoins is due to their ability to legally avoid tax systems.

The Transparency of the Bitcoin System

Bitcoin has also offered hope to those who are cynical about the Federal Reserve and other corrupt financial systems. Every bitcoin transaction is in clear view for the public to see. Individuals who are concerned about the corruption of government-regulated financial systems enjoy the transparency of the bitcoin system.

A Truly Free Economy

Advocates of bitcoins argue that this system will provide the first truly free economy in the world. They also seek to create a financial system that is free from the control of any government entity and also available to all people in the world. The ultimate goal seems to be that people located throughout the world will be able to oversee the operation of the bitcoin system.

Operators of the Bitcoin System

The bitcoin system is currently operated on a computer network that is run by hundreds of individuals. Only a limited number of bitcoins are available for the world to use. The limited number of bitcoins increases their ultimate value.

The Future of Bitcoin

It remains to be seen what the future of the Bitcoin will be. It seems that government entities are skeptical about the Bitcoin and are already attempting to regulate it.