Bitcoin is a kind of electronic currency. Basically, it is a payment system which can provide users with the opportunities to transact without any financial intermediaries, such as bank, third party payments (Paypal or Alipay).

It is commonly believed that Bitcoin was introduced by Satoshi Nakamoto in 2008, who is a Japanese guy in the Unite States. I believe that this is a true story after I read some relevant materials about Bitcoin.

It cannot be used in several countries now because of government regulations. Frankly speaking, it is really a high-risk payment because people can use the virtual currency to transact with others directly, without any restrictions.

As you probably known, financial market is the sensitive area because the issuance of paper money should be controlled strictly by policy-makers. The currency circulation has a direct impact on macro economy.

Although Bitcoin can be regard as a 'valuable' currency and it is significantly convenient for uses, its drawbacks can not be overlooked. If all the people use Bitcoin frequently, it will have an adverse impact on real paper money.

In addition, Bitcoin is a virtual payment system which only runs in cyberspace, so it is hard to measure its 'real' market value. As a result, some guys may exchange the Bitcoin with a negotiated price, and therefore, the hype price of Bitcoin may be extremely high. (You can check the present price of Bitcoin from Internet) People can exchange their Bitcoins at a high or low prices, so they seems this currency as the investment, like securities, futures and other financial derivatives.

Because Bitcoin is the high-risk virtual currency, I think not every governmental agencies open the admission for it. However, from an economic perspective, it is actually an innovative business model in the Internet era.

Hopefully these can help you to understand Bitcoin. I just express my view about Bitcoin.

Bitcoin

Have you heard about bitcoin?

I listened to a podcast this morning and it mentioned a digital currency which is called bitcoin.
It's nothing like the currencies that already exist. We cannot actually hold it in our hands. However, it can buy things or pay restaurant bills in real life. It caused picqued my curiosity, what exactly it is and how does it work? Who created it in the first place? How does it spread to people and how does it make people trust it?

I did some search on the internet, but it seems too complicated for me to understand. So, I am writing here for asking some simple explanations of this digital currency. Any help will be appreciated. Thank you for reading！