BITCOIN – THE NEW KIND OF MONEY

Abstract

Bitcoin is a new kind of money, which means a digital currency which can be used for commercial purposes. Over time, the trade has evolved from barter to the use of the precious metals as money, then to the coins with intrinsic value and to the symbol coins and later to the use of the electronic money, reaching at present to a virtual currency, created and used through the internet network. Bitcoin promises to its users getting high returns under conditions of low risk arising from transactions carried out instantly, without intermediary bank and almost no fees. At this moment, Bitcoin is still an experimental new currency, but in the future it can offer an alternative to previous costly systems and it can increase online business access to developing countries.

Keywords

• Bitcoin
• digital currency
• virtual currency
• peer-to-peer network
• public-key cryptography