Bitcoin has been coined as a currency without having the necessity of any central authority for the control and transaction of the currency. Electronic form of currency was thought of 30 years before and some progresses were also made in this direction. But no form could root itself firmly. Bitcoin was started by Satoshi Nakamoto who dissociated from it after floating the specification on the net. But the currency bitcoin rolled on with the support of the users. Within 2013 the bitcoin reached a unimaginable equivalent value of $400 million.
As of today bitcoin can be used for bitcoin and for buying many products and services. The standard rate of one bitcoin in March 2013 was $40 at the bitcoin exchange. Many web services are also paid in btc to usd. Bitcoin can work across the border and there is no need to pay hefty sums to the banks when international transactions are to be done. Bitcoin transaction can be treated as a property since it is not reversible. The transaction cannot be affected by way of fraud credit card as it is proof of fraud credit card. This is the reason why many countries where such fraud is rampant, are delighted to use this currency.
Conversion to other currencies is easily possible. All these reasons have caused its unprecedented rise. The circulation of bitcoin is more than 10.5 billion units. It is poised for a growth up to 21 billion units at the maximum which is hard coded in the system during its design stage. As per the design the maximum number is set to be reached by the year 2040. One bitcoin unit can be possible to be divided into 100 million units. These smaller units are known as satoshis.
Are the services provided by Bitcoin reliable?
Bitcoin can be exchanged into dollar at the bitcoin exchanges such as Mt. Gox. For exchanging the bitcoins into dollar you have to give your proof of identity. The exchanges can supply information like IP addresses and account numbers to the investigating agencies if asked for. Bitcoin service which has a vast pool of bitcoin with them can help persons who want to launder their money. Bitcoin service is also used to transact money from countries which have very strict foreign exchange regulation in force. This is done by mixing the money with other funds and transferring the other fund to several addresses under the control of the sender.