Bitcoin is a form of digital currency and is not controlled by any institution. It is created and used electronically. Bitcoins are not printed, like euros or dollars; they are produced by lots of people running computers all around the world.
The fact that bitcoin network is decentralized puts many people at ease, because it means that a large bank can’t control their money. There are other characteristics that make Bitcoin different from other digit currencies, they include:It is easy to set upOpening a bank account is always a process with many requirements to fulfill before you get one. Even setting up a merchant account for payment can give you a real headache. However, you can set up a bitcoin address within a short time, no answering questions and you are not required to pay fees.
It is completely transparentAll details of every transaction that ever happened in the network are stored in the block chain. This means that it is possible to tell how many bitcoins are stored at the address that you used publicly. However, it is not possible to tell who the owner is. There are two things that one can do to make their transactions opaque, and they are:Ensure that they don’t transfer too much Bitcoin to a single addressAvoid using the same bitcoin addresses consistentlyIt is fastIt takes few minutes to send money anywhere you want. The recipient receives the money as soon as the bitcoin network processes the payment.
The payment is irrevocable or irreversibleOnce you have made a bitcoins payment, it is not possible to repudiate that payment unless the recipient returns them to you.It is anonymousIn bitcoin network, there is no personal identifying information. Normally, the users can hold multiple bitcoin addresses which are not linked to names or addresses.
Since bitcoins are created by machines using software, every machine that mines and process transactions make up a part of the network. This means that the machines in the network work together. The good thing is that even if some part of the network goes offline for some reasons, the money keeps on flowing as it is not dependent on any controlling central bank.