Bitcoin
Payment Processor: Making Bitcoin Transactions Untracable
Money or
currency is a way to exchange good and services, to store value and a unit of
account. All these things simply mean that a currency can be used as payment of
goods and services and to estimate the worth (value) of something. Money is necessary for one’s survival as it is used to buy
essential commodities – food, cloths and shelter along with many other items
for comfort, convenience, and recreation.
Alongside with
physical money (the notes and coins) another type of currency – the digital
currency, also exists. A digital currency, such as bitcoinapi, is a ‘currency
unit’that can be used to perform the same functions as physical money, these
includes ‘rewards points‘ offered by various businesses that can be used to buy
an item at that business or other affiliated businesses. Sometimes the banks or
several e-wallets offer the customer the convenience of paying someone
digitally ( ie, the electronic transfer of funds), in such cases the money
stored in the person’s account is treated as a digital currency.
What is
bitcoin?
Bitcoin is a
type of digital currency which is cryptographic in nature, meaning that any
payment( made in bitcoins) made through bitcoin payment processorcannot be
traced by anyone, not even the bitcoin trading sites. The fact that bitcoin is
decentralized and uses peer to peer connection for transfers also makes it
untraceable to anyone.
What does
‘decentralized’ and ‘peer to peer’ connection mean?
The amount of
money a country has is regulated by its central bank. In order to regulate
inflation and maintain some value of the currency, the central bank tightly
regulates the supply of money within the country. In case of a deficit in the
budget of the country, the bank prints new currency and then lends it to the
banks and the government in lieu of gold or getting more money from the bank,
the banks, in turn, give out loans to people and the government pays the
people. Thus the bank acts as a central authority for currency hence the name
‘centralized system’.
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