[Economy] Bitcoin – Money 3.0 – the next generation currency

Bitcoin is an all digital, cryptographocally made currency.
It is mined by computers through solving complex mathematical problems on bitcoin network. Each solution is verified by other network nodes and the first best solution is traded using wallet software.

The difficulty of the puzzles is adjusted to ensure steady stream of bitcoins. The transactions are recorded in blockchain that is a massive block of code stored across a peer to peer network of computers. This system is supposed to prevent fraud and counterfeiting and keep the exchange fee low.

Miners, speculators, consumers, merchants and exchanges make up the bitcoin eco-system.

Germany has declared bitcoin private currency, a US federal judge has ruled it as real money. World’s first ATM (bitcoiniacs) opened in Vancouver, letting users access online BTC accounts to exchange bitcoins for cash, or transfer it through smartphone to buy stuff online.

Bitcoins got visibility in India when bitfilm used it for the voting process and as prize money in its 13th International Digital Film Comptition in Bengaluru.  A bitcoin conference was also organized in Bengaluru where investors/enthusiasts/bankers gathered to convince the government and regulator that the bitcoin ecosystem would be valuable economic innovation for unbanked India and remittances.

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