Imagine if someone informed you in 1985 that you can have instant video communication with your friend far away with no cost from your phone using Skype and Internet maybe you will not believe him but now we use it daily and for free. For the financial sector, we can describe the technology behind Bitcoin new to us as the per-sonal computer was when it first was appeared in 1975 and the Internet burst upon in 1993.

As the Internet operates without a central governing body also Bitcoin is made to be a platform that can really transform how we store money, how we use money and how we make payments. Just like people left the music and video record-ing industry and turned to the free music using YouTube or Napster’s unlimited on-demand streaming, similar people again would leave the banking system and make use free banking using Bitcoin or any free-banking alternative that will rise.

What is Bitcoin?

Bitcoin is a type of digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer. P2P network-based virtual currency that is traded online and exchanged into currencies. When paired with third-party services, allows users to mine, buy, sell, or accept bitcoins from anywhere in the world (Ittay Eyal and Emin Gun Sirer, 2014). The offer of transactions with relative anonymity is a significant financial power and brings changes to the future payment systems. Transactions are made with no banks interfering, so there are no transaction fees. More merchants are beginning to accept them. Every-one can buy services, goods but also criminals have a way to transfer very their in-come from illicit activities completely anonymously. While Bitcoin developers maintain Web sites providing guidance to the Bitcoin community, they do not have a centralized database or authority.