Bitcoin, designed in the year 2009, was first of the new type of the asset named cryptocurrency, the decentralized type of the digital cash, which eliminates need for the traditional intermediaries such as banks or governments for making the financial transactions easy.
Instead, bitcoin investment is been powered through the combination of peer-2-peer technology —network of individuals, very much like volunteer editors who make Wikipedia —or software-based cryptography, science of secret information that will just be read by sender or receiver. It creates the currency backed by the code instead items of the physical value, such as gold and silver, and by trust in the central authorities like US dollar and Japanese yen.
What’s needed is electronic payment based on the cryptographic proof rather than trust, allowing two parties to transact straight with one another without any need for the trusted third party.” An ability to avoid the traditional banks and government intermediaries. After financial crisis and Great Recession, certain investors are very keen to embrace on the alternative, and decentralized currency — one which is outside control of the regular banks, and governing authorities and other third parties. (But, to purchase bitcoin on exchange with the US dollars, you will have to link the bank account.)
Never go ahead, making your investments in something without weighing out the pros and cons. Bitcoin is the most fascinating concept; and it is totally new in this market. Thus, you must take your own time to understand it, before you embark on your investment journey.
Nobody knows what can become of bitcoin. This is mainly unregulated; however some countries such as China, Japan, and Australia have started weighing regulations. The governments are highly concerned about the taxation or lack of control on the currency. You can pick the random private key or encrypt this with click of button, by using various free tools.