When you hear the term “Bitcoin” many people think that it is the next big thing in electronic currency or a revolutionary innovation. However, what the mainstream media does not understand is that the term “Bitcoin” is simply an online currency that has been around for some years and has only recently gotten the attention of the mainstream media. As with any new financial system there are good sides and bad sides to the development of this currency system. see this
The most basic description of how the system works is that there are a decentralized Internet and currency system. The Internet is made up of many different computers and when one of these computers starts to get busy it will send out a signal to all of the other computers that they should connect. The other computer will then reply back to the first one and a transaction will be completed. When the transaction is complete the two parties in the transaction agree on a specific amount and transfer it from their respective computer to their destination. This will cause both computers to exchange money which is known as a transaction.
Transactions take place at regular intervals and can take anywhere from five to twenty minutes. This means that transactions can be done with ease as long as both the parties involved have internet access. There are many reasons why the price of the system is increasing. One of the most important reasons is the increase in demand from those who want to purchase products through the internet. This is because the price of the system is so low compared to other currency systems that more people are now buying into it. Although this increase in demand is great, it will eventually come down as the price of the system will rise.