So likely the Universal Currency, Bitcoin Makin Up Prestige

Imagine a world in which we live. You can buy anything in private. No bank. There are no administrative costs. Not afraid there is inflation of the currency makes further eroded. 

This is the promise of digital currency, bitcoin. "It could be an alternative currency outside the dollar, and bitcoin is in question," said former U.S. Congressman Ron Paul, as quoted by CNN, on Friday (12/06/2013). 

According to him, if a wide audience start using bitcoin, so maybe it will be able to drown out the history of the U.S. dollar which is considered as the universal currency worldwide. 

The emergence of bitcoin is not meant for replacing the U.S. dollar or other currencies that had been controlled by the local government or the central bank. However, its presence could be an alternative currency that is universal and can be accepted anywhere in the whole world. 

Economists from the University of Michigan, Miles Kimball, and even recognized the potential power of this currency. "Bitcoin is really able to make the government or the state does not have authority over the currency," said Kimball. According to him, it indicates the amount of demand for an electronic equivalent of cash.

Currently , people in Africa , especially in Kenya , have started using bitcoin as a means of buying and selling in a very simple way , that sends an SMS to the partner transaction .

Digital payment transactions makes the process convenient and cheaper running because no longer bound by the exchange rate , including transaction costs the bank applied . The use of bitcoin also allows people to trade without going through an intermediary bank and cash .

Several advantages when compared with bitcoin other digital means of payment is a transaction no longer requires identity . Sellers and buyers are only required to have the identity of " digital wallet " so that it is much more private than using a credit card .

Citing bitcoin.org , anyone can produce their own through what is called a bitcoin mining or mine . However , to generate bitcoin took quite long and difficult .

It is intended to restrict the circulation of digital currency , which in this case would not be more than 21 million bitcoin circulating around the world . With the limited circulation of bitcoin , a digital currency will not be eroded by inflation .

As for the decentralized management is done by the technology peer-to - peer ( P2P ) , without a central authority . This is in contrast to conventional currencies , whose distribution is determined by the authority , which has the task of central banks conduct monetary policy by regulating the supply of money in circulation .

However , bitcoin.org warned that the currency system is still new , and at times can fluctuate . " As a consequence , you are not recommended to save the bitcoin for now . Bitcoin should be considered as high-risk assets , and you should not save money through bitcoin you big enough , " writes the website .