You may not have heard of them yet — and if you have it’s probably because of some illegal activities associated with it — but Bitcoins are slowly growing in popularity as a legitimate online currency/form of payment. It may be the wave of the future if it could shake its somewhat nefarious reputation.
The main advantages of Bitcoins are that there are no middlemen, no transaction fees and no need to give your name — which ensures complete anonymity. Furthermore, international payments are simple because bitcoins are not tied to any country or subject to any type of regulation from a central bank.
You acquire Bitcoins on an exchange, where you can buy or sell them in a variety of different currencies. Once you own them, they are placed in a digital wallet, which exists in the cloud or on a user’s computer. This wallet is a kind of virtual bank account that allows you to receive and send Bitcoins, pay for goods or even save money.
No one truly knows what the future holds for Bitcoins, but they certainly are something to keep your eye on as technology advances and privacy concerns continue to grow.