Bitcoin has appeared as a new system of payment which is totally money in digital form. It is termed as a consensus network providing financial supports to its clients. The bitcoin system is devoid of any central authority or any middlemen which means it is truly a decentralized customer to customer network. Here Bitcoin is the cash for the internet. Bitcoin is one of the book keeping systems which employ triple entry.
In the year 1998 Wei Dai floated the idea of a novel form of keeping the money using cryptography for the creation and transaction of money free from a central authority. The concept was called crypto-currency. The concept was put into more details by Satoshi Nakamoto who published the model specification proving the concept of Wei Dai in the year 2009. Bitcoin is a method of mixing your money in such a way as to confuse about its source.
The bitcoin software is made open to all so that anybody who wants to develop may access it and develop their own type of modified version. As in the case of e mail, bitcoin is also not owned by anybody. It is controlled by each and everyone in the world. But bitcoin can only work through consensus among all its users. This is the inbuilt incentive in the bitcoin system due to which all users put maximum effort to protect it for their own interest. btc to usd system can be safely used to convert all your funds.
Can anyone trace the money, if I use bitcoin?
Bitcoin can be appropriated in mixing your money with the funds of other persons so that the source of the money cannot be traced. It can also help in transferring money from countries where very strict law does not permit movement of fund.
Bitcoin can protect privacy which of course can be used sometimes for money-laundering by mixing with illegally gathered money so that the total money looks legitimate.
Bitcoin is a form of digital currency which was proposed by one Satoshi Nakamoto who curiously tore himself away after creating the specification and setting it in motion. It has a unit called bitcoin unit (BTC) which can again be divided into 100 million units. The smaller units have been named as satoshis. Bitcoin exchange takes place through an app which is known as wallets. Since the system is devoid of any central authority there is no need of any bank.