A new currency is quickly gaining ground online, called Bitcoin.
A new currency is quickly gaining ground online, called Bitcoin. Bitcoins are, technically, lines of code that represent a defined value in any currency. Developed in 2008 by an anonymous software developer as a peer-to-peer (p2p) electronic cash system, the system is based on open source protocols. Rather than being controlled by a centralized agency like traditional currency, however, Bitcoins are managed by a collection of servers online and maintained through strict encryption and by the community that uses them. As a currency with a set, global value, Bitcoins offer a variety of opportunities for consumers and vendors alike. Bitcoins are “stored” in a digital wallet that allows users to track their transaction with ease.Benefits
Bitcoins provide a secure and low-fee solution for online shopping that many vendors are beginning to favor. Due to the decentralized network that supports Bitcoins, the service offers no or low-fee transactions for shoppers and vendors. Additionally, Bitcoins are easy to protect through digital means, rather than having to worry about credit card information being stolen or physical cash being lost.
Most importantly, Bitcoin use is rapidly increasing in popularity. PayPal recently noted that it is seriously considering supporting the currency, according to The Next Web. More small businesses are accepting Bitcoins for payments because they allow them to drastically reduce the fees paid for transactions. Additionally, many big bankers are considering trading in the currency and its derivatives, adding legitimacy to the trend.
On the other hand, there are risks associated with the young currency. The value of Bitcoins is still in flux, with dramatic rises and falls in value over time. Additionally, the servers and exchanges that are managing the Bitcoin community have come under attack several times in the past by hackers. However, with more businesses and the finance community beginning to take real interest in Bitcoins, the former issue is likely to resolve, creating more balance in the Bitcoin value, and if Wall Street and big banks continue to invest in Bitcoins, the technology behind it is likely to improve.
Why is it important?
For online shoppers, the Bitcoin trend is something to consider, as it could help you save money. As more vendors begin to accept the currency its value will increase, and shoppers should get in on the trend now in order to take advantage of its rise. Regardless of whether you decide to use Bitcoin or not, saving online should always be a primary concern, and DealPly can help you save money and shop smarter.