Bitcoin is a completely new concept. It is indeed a world beyond currency and monetary system.
It has a lot of benefits to many people, but there are also some drawbacks. There are also views of central bank officials and some bitcoin proponents who claim that bitcoin has a high chance of the collapse. However, these critics are unfounded and their opinions are just prejudiced.
If it was not for the central bank officials and their so-called currency reform, some of the current troubles of the banking system would not be happening now. If the bitcoin community were to unite and put forward its own self-sustaining monetary system, it would have no need for central banks.
I have some views about how Bitcoin can be used in practice to help reduce some of the possible dangers and hazards that we face as human beings. It is a known fact that each country can be divided into two; one by the government and the other by the people. In other words, one part can be the people controlled by the central bank and the other part can be the people controlled by the free market. In the free market, people are usually free to do whatever they want because they are not controlled by someone.
Since bitcoin was created, it has already given many financial experts a lot of time to test it. If we could get a better understanding of it, there would be some advantages as well as disadvantages. Some critics say that it is a fraud. Nevertheless, I would argue that bitcoin is actually a medium of exchange, even though it is only one of the currencies that is not backed by any central bank.
As a matter of fact, the first website that I remember using bitcoin was Mt.Gox. So, when someone says that it is a fraud, this must mean that they did not use it properly. It is as simple as that. However, there are some significant advantages as well as disadvantages. Some people have cited the fact that bitcoins are very hard to trace back to. This is true, because if someone has somehow made it to some website selling it illegally, it will be hard to trace back to them.
Also, if a central bank starts to control it, there might be some problems and risks to come about. The debate on whether bitcoins will be good or bad will continue, but at the end of the day, we cannot deny that it is a very fascinating concept. Even so, it is still a technical field where some people are still learning about it.