The Bitcoin Phenomenon Explored by Global Web

Money, traditionally, is regulated by governments and banks. But today, with the ubiquitous power of the internet, a new kind of currency is emerging: Bitcoins. So, what are Bitcoins, and how will they change the future? Global Web, a top payment processing company, looks at the basics of bitcoins and their implications for the future.

Bitcoin is a digital, virtual currency designed by Satoshi Nakamoto (pseudonym for a person or a group of people behind bitcoin) which came into use in 2009. The currency is like none other; it is decentralized and deregulated--truly out of the hands of any government or bank. It is a currency that completely transcends international borders. Bitcoins are not created by governments; rather, they are generated using computer software that “mines” bitcoins in bundles of 50. The Bitcoin “mining” processes requires extensive computing power and electricity.

So, how does one use Bitcoins? Bitcoins are transferred online from consumer to merchant. Bitcoins are stored on one’s personal computer or external hard drive in digital “wallets” that carry an identification code in the form of letters and numbers. They can also be exchanged via physical coins and banknotes. Users execute transferrals of bitcoins through a transaction log within a peer to peer network.

Clearly, Bitcoins are emerging as a powerful alternative currency form. Digital currency grants purchasing and selling powers to people and businesses who were previously barred from E-Commerce for various reasons, including political barriers. However, due to the fact Bitcoins  are not regulated, and transactions can be executed completely anonymously, Bitcoin “wallets” are susceptible to hacking and are used by criminals to make transactions for illegal goods, such as narcotics. Indeed, security issues are of major concern for Bitcoin users, given that millions of dollars worth of Bitcoins can be potentially stolen from a computer or a USB stick.

Certainly, Bitcoins are certainly a phenomenon that banks and governments should not ignore. Although proponents of Bitcoins claim that it is the currency of the future, Bitcoins still have a long way to go. Today, the online purchasing process is widely conducted using credit and debit cards and through payment processing companies, such as Global Web. Consumers and businesses rely on Global Web everyday to ensure that all their online transactions are secured.

About Global Web
Global Web offers clients unbeatable content and subscription management services. Moreover, the firm seeks to provide its customers with secure payment processing protection against malware and hackers. Global Web may be contacted at (877) 855-1753 or via Facebook, Google+ or Blogger.