Electronic virtual currency-Bitcoin why is it valuable!

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Update: 2013-04-02 14:12

Bitcoin (BitCoin) is a peer-to-peer form of http://www.aliyun.com/zixun/aggregation/35699.html "> Digital currency." Point-to-Point transmission means a centralized payment system. Bitcoin does not rely on a particular currency agency to issue, it is based on a specific algorithm, through a large number of calculations, the Bitcoin economy uses the entire Peer-to-peer network of many nodes to form a distributed database to confirm and record all transaction behavior. The peer-to-peer approach to the central feature and the algorithm itself ensures that the currency cannot be manipulated by making a large number of Bitcoin. Cryptography based design allows Bitcoin to be transferred or paid only by real owners. This also ensures the anonymity of currency ownership and circulation transactions.

Bitcoin is a network of virtual currencies, limited in number, similar to Tencent's Q-coin, but can be used to cash in: it can be exchanged for most countries ' currencies. You can use Bitcoin to buy virtual items, such as clothes, hats, and equipment in online games, and you can use Bitcoin to buy real-life items, as long as someone accepts them.

The biggest difference between Bitcoin and other virtual currencies is that the total quantity is very limited and extremely scarce. The monetary system has no more than 10.5 million in the first 4 years, and the total number thereafter will be permanently limited to 21 million.

Network virtual currency Bitcoin prices in recent days to continue to run high. 26th this month, set up in Tokyo, Japan, Mt.Gox exchange Bitcoin prices soared to 975 U.S. dollars, approaching the 1000 dollar mark. If only the value was calculated, the bitcoin was 72 times times higher than it was at the start of the year (13.5 dollars).

This month 19th Ben Bernanke, chairman of the Federal Reserve, issued an upbeat statement about Bitcoin. As soon as the comments were made, the price of bitcoin went higher. In addition, Ben Bernanke, chairman of the Federal Reserve, said at the bitcoin hearing 19th this month that "Bitcoin may be used maliciously as a money-laundering tool, but in the long run Bitcoin will become a fast, secure and efficient payment system". Influenced by this remark, the price of Bitcoin soared to 900 dollars that day.