What is Bitcoin and how does it work? Is it legal? Who’s behind it?

Bitcoin is an interesting form of currency that has many people wanting to understand more about it. It’s still emerging in the marketplace and is slowly but surely becoming a trusted way to pay for merchandise without revealing who you are. 

What it is

Bitcoin is a new form of currency. And by new, I mean REALLY new. It first hit the scene in 2009. Basically, it allow for money transactions to occur with no fees, no banks, and you don’t even have to identify yourself. It’s the first time ever that there is absolutely no middle man involved with a money transaction.

How it works

There are a ton of ways that you can acquire bitcoins for purchases. Mt. Gox is the largest Bitcoin exchange marketplace. You can also solve complex math problems to win Bitcoins. Then, you can use the Bitcoins to make anonymous purchases online.

Legality

Because there is a lot of gray area and governments aren’t really able to regulate it, some countries have banned the use of Bitcoin, but it’s legal in the US. Japan is a huge Bitcoin supporter and other countries are likely to follow suit.

Inventor

The inventor is actually unknown. The founder used an alias, Satoshi Nakamoto. It kind of keeps the theme of anonymity going.

Is it perfect? No, not really. The ability to make purchases anonymously can make it easier to partake in illegal activity. However, nobody can deny the fact that it’s definitely revolutionizing the way that we conduct monetary transactions. We’ll have to stay tuned to see how it plays out into the future.