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Bitcoin has been in the news the last couple of weeks, but a lot of people are still unaware of them. Could Bitcoin be the future of online currency? This is just one of the questions, frequently asked about Bitcoin. How Does Bitcoin Work? Bitcoin is a type of electronic currency (CryptoCurrency) that is autonomous from traditional banking and came into circulation in 2009. According to some of the top online traders, Bitcoin is considered as the best known digital currency that relies on computer networks to solve complex mathematical problems, in order to verify and record the details of each transaction made. The Bitcoin exchange rate does not depend on the central bank and there is no single authority that governs the supply of CryptoCurrency. However, the Bitcoin price depends on the level of confidence its users have, as the more major companies accept Bitcoin as a method of payment, the more successful Bitcoin will become. Benefits and Risks of Bitcoin One of the benefits of Bitcoin is its low inflation risk. Traditional currencies suffer from inflation and they tend to lose their purchasing power each year, as governments continue to use quantative easing to stimulate the economy. Bitcoin doesn't suffer from low inflation, because Bitcoin mining is limited to just 21 million units. That means the release of new Bitcoins is slowing down and the full amount will be mined out within the next couple of decades. Experts have predicted that the last Bitcoin will be mined by 2050. Bitcoin has a low risk of collapse unlike traditional currencies that rely on governments. When currencies collapse, it leads to hyperinflation or the wipeout of one's savings in an instant. Bitcoin exchange rate is not regulated by any government and is a digital currency available worldwide. Bitcoin is easy to carry. A billion dollars in the Bitcoin can be stored on a memory stick and placed in one's pocket. It is that easy to transport Bitcoins compared to paper money. One disadvantage of Bitcoin is its untraceable nature, as Governments and other organisations cannot trace the source of your funds and as such can attract some unscrupulous individuals. How to Make Money with Bitcoin Unlike other currencies, there are three ways to make money with Bitcoin, saving, trading and mining. Bitcoin can be traded on open markets, which means you can buy Bitcoin low and sell them high. Volatility of Bitcoin The value of Bitcoin dropped in recent weeks because of the abrupt stoppage of trading in Mt. Gox, which is the largest Bitcoin exchange in the world. According to unverified sources, trading was stopped due to malleability-related theft that was said to be worth more than 744,000. The incident has affected the confidence of the investors to the virtual currency. According to Bitcoin chart, the Bitcoin exchange rate went up to more than $1,100 last December. That was when more people became aware about the digital currency, then the incident with Mt. Gox happened and it dropped to around $530. In 2014, We expect exponential growth in the popularity of bitcoin around the world with both merchants and consumers, Stephen Pair, BitPay's co-founder and CTO, â€œand anticipate seeing the biggest growth in China, India, Russia and South America. India has already been cited as the next likely popular market that Bitcoin could move into. Africa could also benefit hugely from using BTC as a currency-of-exchange to get around not having a functioning central bank system or any other country that relies heavily on mobile payments. Bitcoin's expansion in 2014 will be led by Bitcoin ATMs, mobile apps and tools. World Experiences Bitcoin More people have accepted the use of Bitcoin and supporters hope that one day, the digital currency will be used by consumers for their online shopping and other electronic deals. Major companies have already accepted payments using the virtual currency. Some of the large firms include Fiverr, TigerDirect and Zynga, among others. The Future of Bitcoin Bitcoin works, but critics have said that the digital currency is not ready to be used by the mainstream because of its volatility. They also point to the hacking of the Bitcoin exchange in the past that has resulted in the loss of several millions of dollars. Supporters of digital currencies have said that there are newer exchanges that are supervised by financial experts and venture capitalists. Experts added that there is still hope for the virtual currency system and the predicted growth is huge. I hope this article has helped you all gain a much more clear understanding of Bitcoin, the potential, does Bitcoin work and how Bitcoins work. For more articles about Bitcoin, weekly trends, information and updates, subscribe to our blog post. This Article was written by Aaron Brown CEO/Founder of Synergetic Society Media Group LLC Bitcoin Cryptocurrency is buzzing all over the world, whether you are on the internet or any media. It is one of the most exciting and craziest things happened that comes into existence in the last few years only. More importantly, you can earn an awesome return by bitcoins trading or you can keep it for a long term. You may be heard about Stocks, Commodities, Forex, and now a new currency called Bitcoin trading that impacts greatly on our lives. In this beginner's guide to Bitcoin cryptocurrency, you will get to know the A B C of Bitcoin. About Bitcoin Cryptocurrency The emergence of Bitcoin is still not known but a paper was published in October 2008 under the pseudonym Satoshi Nakamoto held from Japan. His identity is still unknown and believed to have approximately one million bitcoins valued more than $6 billion USD as of September 2017. Bitcoin is a digital currency popularly known as cryptocurrency and is free from any geographical boundary. It is not regulated by any government and all you need is an internet connection. As a newbie, Bitcoin technology may confuse you and a little bit tough to know about it. However, I will help you dig it deeper and how you can also do your first Bitcoin trading at ease. Bitcoin Cryptocurrency works on blockchain technology which is a digital public ledger and shared by anyone in the world. You will find your transactions here whenever you do any Bitcoin trading and anyone can use the ledger to verify it. The transaction done will be completely transparent and is verified by blockchain. Bitcoin and other cryptocurrency are the parts of blockchain and are an awesome technology that runs on the internet only. Key Terms Related To Bitcoin Cryptocurrency Before you ready to own your first Bitcoin, it is better to know the key terms related to bitcoins. It is also termed as BTC which is a part of bitcoin and 1 bitcoin equals 1 Million bits. With the emergence of bitcoins, some other alternative cryptocurrencies also evolved. They are popularly called Altcoins and includes Ethereum(ETH), Litecoin(LTC), Ripple(XRP), Monero(XMR) and many others. XBT and BTC are the same things and commonly abbreviated for bitcoin. Mining is another term used a lot and it is actually a process done by computer hardware for the Bitcoin networks. Things You Can Do With Bitcoin You will be able to trade, transact, accept and store bitcoin. You can send it to your friends, request from a friend and store it in your digital wallet. Even, now you can top-up your mobile/DTH directly by paying through bitcoin. Transaction cost is low as compared to PayPal, Credit cards, and other online intermediaries. Furthermore, it also protects your privacy that may get leaked on the internet while using credit cards. It is extremely secure and nobody can seize or steal coins. Due to its transparency in the system, it is also not possible to manipulate because of the shared public ledger. You can verify transaction from anywhere and at any time. Demand is likely to rise as the total production of bitcoins is to be limited to 21 million only. Japan has already legalized it and other countries may follow it soon and the price may hike further. I will be covering more on Bitcoins in detail in the upcoming days where you will learn great stuff of bitcoin trading. You can comment your views and ask anything relevant to bitcoins. If you found this beginner's guide to Bitcoin Cryptocurrency useful, then do share and like it on social networks.