What is bitcoin and how it works

[Abhijoot]

There is lot of buzz about bitcoin on web. That is it actually. I tried to find out, but not able to properly understand. There are some sites which are offering the exchange rate. Where US dollar was around 110 for 1BTC. Does this is some kind of new currency in the market. Is it supported by the government. I do not think this is reliable. There is hardly anything official available in terms of virtual currency.

[Rust-18]

Bitcoin is currency system which is getting popular. It does not has any central control. That means whoever has it, is the sole owner. There is no control over it. The currency helps you to buy stuff instantly over the web.

[Kiran25]

I am also following articles on bitcoin from long time. It is a new virtual currency. Actually it is a p2p currency which does not has any centralized control. You can use bitcoin to buy stuff online. Many retailers has yet not accepted it. But at some places it is used. To use bitcoin you will need a digital wallet. Everyone has a unique address. And to send bitcoin you just have to add the address and type the amount. That's all. The virtual current is sent. Now there is no tax regulation, there are not monitoring, etc on it. Being a unregulated currency it is sold and receive on large scale and no one keeps a track on it. At some extent this is helpful because here you do not have to pay any duties on money transfer. While this can be misused also. People can use it for illegal activities once it get popular. Somehow there must be some kind of control over it, so that people can have a mental satisfaction about the money send and received. There is a exchange center which gives you cash in place of bitcoin. That is located at very few places only. It looks this concept is going to take some time to finally reach people. Till yet virtual wallet kind of things are really complicated.

[Hadriel]

I do not really trust on this things. Being a digital currency there are chances of facing any problem with this. I am sure this is not completely secure. There can be flaws which can cause problem and loss of money.