Bitcoin transactions are transacted directly from the sender to the recipient's computer online. [4] These transactions are authenticated through cryptography and are publicly recorded in a ledger that is distributed to all. This open and distributed ledger is called blockchain. [5] Bitcoin is produced through mining where transactions are recorded and verified based on the processing power of the computer. [6] The total amount of bitcoins that will be generated from the transaction decreases every four years. Thus, a total of 210,000,000 bitcoins will be created by 2140 and no new bitcoins will be created later. [৭]
Since no financial institution is required to complete the Bitcoin transaction, detailed information about the actual credentials of the sender and receiver of the transaction cannot be followed. [8] [9] Bitcoin is becoming increasingly popular in more than one country. [10] Bitcoin is currently used as a digital currency, product or service. In addition to legal goods transactions, Bitcoin is also used for drug smuggling and money laundering. Although Bitcoin has gained popularity as a digital currency, it has been criticized by many for its sharp fluctuations against various international currencies, its scarcity, and its limited use in business. [11] [12]
Bitcoin's first ATM machine was recently launched in Vancouver, Canada . [13] The United States and the Canadian government are considering registering Bitcoin customers to curb drug trafficking, illegal arms trade and other illegal uses.
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