Bitcoin is a type of cryptocurrency which is a decentralized, peer-to-peer system and it permits its users to process transactions via digital units called bitcoins. It was created in 2009 by Satoshi Nakamoto (anonymous) and generated as a third type of currency.
This is digital money which does not authorize by government and other financial institutions such as banks and therefore, no one can control it. One can transact bitcoins to other users through digital wallet which is computer software.
Each transaction is recorded in a public ledger called block chain which updates and informs all accounts that a transaction has made. These crypto currencies are mined by a computer through a process of solving increasingly complex mathematical problems and the created digital money is stored in digital wallets.
Several advantages of paying with crypto currencies:
- Anonymity – If a user does not voluntarily publish his Bitcoin transactions, what he has purchased will never be associated with his personal identity
- No Third-party – another benefit is that governments, banks and other financial intermediaries have no choice but to interrupt user transactions or freeze on Bitcoin accounts.
- Low Transaction Fees – Because Bitcoin transaction does not have any intermediary or involvement of government, the costs of transacting are extremely low and this acts as a major benefit for travellers.
- Mobile Payments – The users of биткоин can pay for their currencies anywhere with an internet connection which means they do not need to travel for purchasing things.