As the glades online stated previously, Bitcoins have a finite market cap. This scarcity subjects th

Like many of the other forms of digital currencies in the world today, Bitcoins are a form of electronic money independent of traditional banking. Two main characteristics which set Bitcoins apart from other, general digital currencies, the glades online however, would be the way in which Bitcoins are created, and their divergence from regular forms of currency.
Founded in 2009 by Satoshi Nakamoto, the concept which eventually became the glades online the Bitcoin has been developed by many individuals since. Rather than rely upon a central authority to regulate the glades online Bitcoins, Nakamoto hoped to create a free floating currency which relied on peer to peer cryptography. In short, whilst most of the currencies of the world were largely physical, traceable, and regulated by monetary authorities around the world with their own agendas, the Bitcoin would be an independent, self-managed currency. the glades online
On a more technical note, Bitcoins are generated through a process called the glades online mining, a term which refers to third party individuals who offer up their specialised computer hardware to process Bitcoin transactions. In return, these miners receive new bit coins in exchange for their services. The number of bit coins created in a year however are automatically halved over time until issuance of said currency halts completely with a total of 21million Bitcoins the glades online in existence. This provides a market cap and thus helps to maintain the currency s value. Once the cap is hit, Bitcoin miners are then to be supported exclusively by transaction fees alone.
A by-product of this decentralised, and relatively secure method of regulation and creation is that Bitcoins are largely untraceable. This gives rise to both legitimate and illicit uses which have sparked legislative and moral debate in the use of Bitcoins. Despite such controversies however, the recent success in the growing usage of Bitcoins is undeniable; giving rise to a growing market for digital currencies which has spawned other currencies the glades online such as the Dogecoin, the Chincacoin, and many others. The question remains, instead, whether or not such a currency can continue to exist at its present value and perhaps even become a legitimate forum of exchange in the future. USES OF BITCOINS
In today s world, Bitcoins can be generally used for three main purposes. Firstly, the opportunity to mine Bitcoins can be conducted individually or in teams. Usually, a team of super computers are used to solve complex mathematical equations where, whenever an equation the glades online is solved, a reward of twenty-five the glades online Bitcoins are granted towards the account that oversees this process. However, due to the sheer number of people attempting to achieve a similar goal, competition makes the process the glades online of mining highly unprofitable. the glades online
Secondly, Bitcoins are also an extremely popular investment opportunity due to its price fluctuation. The price of Bitcoin during its time of writing was $42.98 per coin, which skyrocketed to an astounding $1074.50 in March of 2013 before the glades online plummeting to $454.4 USD in April 2014. Due to the inconsistent price of Bitcoin, investors are able to maximize their profit by buying and selling the glades online at the correct times.
Lastly, since Bitcoin the glades online is regarded as Internet currency, it can be used to trade between businesses. In fact, some businesses only trade with Bitcoin as it is conducted in a Peer-to-Peer environment, which can insure confidentiality between both parties. Furthermore, due to the absence of intermediaries, funds are capable of rolling into companies who are on the verge of bankruptcy. Of course, this also opens up the opportunity of Bitcoin being used for unethical methods. However, the risks of Bitcoins have been revealed after the closing of a Mt. Gox (Canadian Bank) due to a total of 440,000 euros worth of Bitcoins stolen by hackers after they exposed specific flaws within the system. This robbery occurred during the [transfer] between users and involved inundating the system with simultaneous requests to move coins between accounts. These three purposes only scratch the surface of the complex digital currency. VALUE DRIVERS OF BITCOINS
As the glades online stated previously, Bitcoins have a finite market cap. This scarcity subjects the currency to the whims of supply the glades online and demand, and thus, on the basis of fundamental economic theory, gives the Bitcoin a value. On its own, the Bitcoin offers a variety of attributes that make it desirable and thus give rise to demand, the first of which would be its unique qualities discussed above; as a form of untraceable currency which at the same time guarantees payment and protection against online fraud, Bitcoins fulfil the glades online a market niche needed the glades online in today s world. Its low transaction fees and payment freedom thus provide a medium of exchange on the internet.
Whilst the aforementioned factors provide a baseline of demand, the relative volatility behind the value of Bitcoins can be traced to what drives the price of Bitcoins; perception. Demand for the digital currency