Bitcoins are an increasingly popular form of virtual digital currency that are directly based on their value and use today, and on speculation of their future value. Bitcoins have the capabilities to solve some of the problems we face today with our current currencies.
The worth of a Bitcoin is still volatile and changing, while its value is based more on speculation than the volume of its usage. Bitcoin is a phenomenon that has gained momentum over the past year but some people are still having hard time accepting it. Regardless, it has rapidly gone mainstream and it is here to stay. Bitcoin is an easy form of currency that doesn’t involve any sort of physical money or coins-they are purely digital. The value is derived on the market principles of supply and demand. Furthermore, additional coins could be released to market or mined by a series of computer calculations. The concept that each next batch of bit coins requires more resources to “mine” makes the process steady and stable. Furthermore, there has been a cap off point determined of the number of bit coins in the market. This way the value of “bit coin” will be held steady incase of drastic events or economical conditions which could impact its value.