The most well-known and popular form of digital currency is bitcoins, also known as Bitcoin. However, there are other forms of digital money like token coins, stock, smart cards, etc. But unlike traditional money, bitcoins are scarce and virtually impossible to counterfeit. It was created by an anonymous person or group called Satoshi Nakamat, who designed and conceptualized the system through this website.
Unlike traditional money that has a physical commodity like gold or silver that is backed by the government, bitcoins are completely abstract and have no physical commodity. Transactions of bitcoins are made through the internet, instead of through banks or credit card companies like in regular money transfers. Therefore, the only thing that matters in your bitcoin transaction is the internet. And this is the reason why there are no known international currencies or banks in the world with which you can conduct your bitcoins transactions. However, with the advent of bitcoins in the business and finance sectors, virtual currencies are coming into being and slowly but surely taking the place of traditional currencies.
The main characteristic of virtual currency is that it is completely anonymous, that's why it's very hard to determine its origination or source. Transactions in bitcoins are usually done through the use of Tor software, which helps them to remain hidden. Transactions through the internet are safe and secure, however not every transaction is shielded from possible surveillance by hackers and other cybercriminals. Still, since there are no physical commodities, there is no way to track or trace your transactions through the public ledger.
Because of their anonymous nature, bitcoins have attracted many supporters all around the world. One of the main reasons for its popularity is the freedom it provides its users. There is no need to go through a traditional bank to convert your local currency into bitcoins, you can simply purchase them from any local merchant that provides you with a virtual payment channel via: https://www.bytefederal.com/how-to-use-a-bitcoin-atm-the-ultimate-beginners-guide/. Also, since the currency in bitcoins is not backed or printed by any central bank, it has the same intrinsic value as any other digital currency that has been previously issued.
Bitcoins' main advantage over traditional currencies is the fact that they are very difficult to counterfeit or copy. Unlike banknotes and credit cards, which can easily be reproduced, bitcoins cannot be duplicated. As a result, if you keep old bitcoins at home and give your public key, and your private key, to someone who wants to make an unauthorized transaction, it will be very difficult for him to do so. Transactions through the internet and your local wallet are therefore safe and secure since nobody can make a copy of them. Transactions through the bitcoins network are not reversible, you can't change them and get back a different one.
The great thing about the bitcoin system is that it works on a distributed ledger, called the "blockchain". It consists of a network of computers, each having a record of every transaction that occurs throughout the system. Because of this, the bitcoins you receive are safe and are not susceptible to hacking. A hacker who breaks into one of the blocks on the chain would be able to view every transaction that occurred but would have difficulty doing anything with your private key or your bitcoins. This is what makes bitcoins immune to any criminal transactions. Discover more here: https://en.wikipedia.org/wiki/Bitcoin_ATM.
