Bitcoin is a payment system invented by Satoshi Nakamoto, who released it in 2009 as open source software. Claims about Nakamoto’s identity have not been verified, but Bitcoin has risen from obscurity to the largest of its kind, a digital asset now called “cryptocurrency.”
The highlight of Bitcoin is that, unlike traditional and traditional printed currency, it is an electronic payment system based on mathematical proof. Traditional currencies have central banking systems that control them, and in the absence of a single controlling institution, the US Treasury has described bitcoin as a “decentralized virtual currency”. The basic idea behind Bitcoin was to produce a currency completely independent of any central authority and a currency that could be converted electronically and instantly with almost no transaction fees.
By the end of 2015, the number of merchants accepting Bitcoin payments for products and services exceeded 100,000. Major banking and financial regulators, such as the European Banking Authority, for example, warned that Bitcoin users are not protected for reward or reimbursement rights , although Experts from major financial centers agree that Bitcoin can provide legal and valid financial services. On the other hand, legislative authorities, law enforcement agencies and financial regulators have indicated that the increasing use of Bitcoin by criminals is one of the main reasons for concern.
The owner of Bitcoin voucher service Azteco, Akin Fernández, comments that soon there will be a major change in the way Bitcoin is created. The generation rate of bitcoin every day will literally be halved and this could completely change the perception of bitcoin, although it would be almost impossible to predict how the public and traders would react to such a move.
Against the background of this move, expectations are that bitcoin transaction volume will triple this year due to a possible Donald Trump presidency. Some market commentators believe that the price of the digital currency could rise if such a possibility caused global market turmoil.
The Panama Papers scandal, which broke out in May this year, prompted the European Union to combat tax avoidance strategies used by the rich and powerful to amass wealth by introducing new rules. The current rules seek to fill loopholes and among the proposed measures are efforts to stop anonymous trading on virtual currency platforms such as Bitcoin.