Many of us are thinking Bitcoins as just like Gold coins. But it is not the case. The Bitcoins are virtual exchange system, where the cash here is digital, with no physical attire. The Bitcoins are not controlled by any banking system or any other third party interference. They are anonymous and private.
The Bitcoins are mined and put inside an electronic wallet. For making transactions with these electronic wallets, e-wallet software has to be downloaded either in the smartphones or computer systems. Bitcoin mining is beneficial in solving complex business-related mathematical problems on a computer-based system. Any other authority does not control the Bitcoin transaction as it runs independently.
Can we call Bitcoins as a Money
Many people doubt whether Bitcoin is real money. Of course, yes! At the current market value, 1 Bitcoin is equivalent to $11,933.80. But unlike the currency, you do not want to carry them in your physical wallet. You store them as files in a digital wallet. The first step in a Bitcoin transaction is creating an account through bitcoin storm. Once you had registered your account, a wallet address will be provided. For making all transactions, this wallet address is mandatory. On that website, there will be exchange options, in which the Bitcoins will be exchanged to all existing currencies and the amount, get transacted within one day or even within 2 hours. So now, it will be clear for everyone that Bitcoins are virtual cash which can be transformed into real money through many exchange agencies.
Though Bitcoins are considered as money, in a few countries, it is not. Say, for example, a US Dollar is accepted as such in the US. But if you go to another country, you need to change USD to that particular country's currency. Otherwise, it has no value in that country. But though Bitcoins are accepted internationally still few countries are banning this option, as they are anonymous and digital money and no authority to control if any chaos happens. So to accept Bitcoin wholeheartedly like money, many trading industries must be accepting Bitcoins for the successful evolution of Bitcoins across the globe.
The currencies are measured based on the number engraved on the face. It is the value of the money. But in the case of Bitcoins, there are no such numerals. But gold, on the other hand, also does not have any face value. But its value is measured by its weight. So whatever number be printed, the weight of gold matters. It can be in pounds or ounce. It has its unique value, which will remain until this world collapses!! IS it possible to measure the Bitcoins in ounce or grams? That is not possible. It has its measure of specific figures in various currencies as Bitcoin value.
In the case of the traditional currency system, there will be a track of every transaction made under the control of the bank. So if anything fishy occurs, the Banks will be able to backtrack and quickly find out the solution for the problem. But in the case of Bitcoins, there are no banks or any other government authorities to control. All the Bitcoin transactions are stored as blockchains. Each block in a blockchain is linked to the address of the person’s e-wallet address for which the Bitcoin has to be transacted. With this wallet address, it is not possible to track a person's identity. So if by mistake, the Bitcoins are transacted to some other e-wallet address, the Bitcoin can never be reversed. It is lost to some unknown e-wallet!!
The Bitcoins have to be protected by some protection mechanisms. A two-step login has to be followed, where if a person logins with a registered e-mail address and password, a code has to best to the registered mobile number for granting access. There is no assurance that the e-wallet is free from hackers. As they are just files residing in the cloud or computers, it can be easily hacked or ruined by viruses.
So, with proper authorities and protection mechanisms and more importantly reversible schemes, the Bitcoins will be accepted as equivalent to money across the globe!