Bitcoins are a decentralized crypto-currency also known as digital cash without a central bank or single administrator. the electronic currency can be transferred peer-to-peer from user to user directly without need of intermediaries, although they are used in the process. Network nodes will verify transactions by means of cryptography and are recorded in a public distributed ledger they call a block chain. No one knows who created bitcoins, though it seems to be related to a group of individuals who call themselves Satoshi Nakamoto in 2009 being released as an open-source software. Bitcoins were originally meant as a reward for data mining. The bitcoins can be exchanged for other goods and services, as well as world currencies. The University of Cambridge estimated in 2017 there were 2.9-5.8 million unique users possessing crytocurrency wallets with the most common crypto-currency being bitcoin.
Bitcoins are commonly used in illegal markets and transactions. It has been criticized for high electricity consumption, price volatility, exchange thefts, and disruption of other markets. They are being scrutinized by the financial markets, and many regulatory agencies have issued alerts about the market. Some believe it was birthed from the “Denationalisation of Money: The Argument Refined” book by Friedrich von Hayek and influences from the Austrian school of economics. Satoshi Nakamoto stated in white papers that “the root problem with conventional currencies is all the trust that’s required to make it work. The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust.”
this led to the initial attraction of bitcoin being for philosophical or political ideology to become separate from the state. The concept is to remove money from social as well as governmental control – denying the reliance of money from social relations and trust. Bitcoin’s Declaration of Independence as found on YouTube states “Bitcoin is inherently anti-establishment, anti-system, and anti-state. Bitcoin undermines governments and disrupts institutions because bitcoin is fundamentally humanitarian.”