Bitcoin is the virtual currency controlled by the decentralized network of the users and is not directly subject to whims of the central banking authorities and national governments. Even though there are many cryptocurrencies in the active use, Bitcoin is the highly popular & widely used –closest cryptocurrency that is equivalent to the traditional and state-minted currencies.
Just like the traditional currencies, like US dollar, Bitcoin also has the value that is relative to some other currencies or physical goods. Bitcoin is a highly versatile cryptocurrency today. It is used to buy goods from ever-growing merchants that accept the Bitcoin payments. This can also be exchanged with some other private users because consideration for the services performed and to settle the outstanding debts. This can easily be swapped for some other currencies, both virtual and traditional, on the electronic exchanges, which function like Forex exchanges. You need to have a proper bitcoin converter to convert it.
For all the promises, Bitcoin stays the niche currency, which is subject to the wild value fluctuations. In spite of wild-eyed statements of the hardcore proponents, certainly it is not the legitimate investment and trading vehicle, as it is a case with the stable national currencies, like the US dollar or Japanese yen.
There you get it. With that, you have both the sides of coin. Bitcoin, you will see, isn’t perfect. This does have a lot of benefits that the physical currencies don’t provide to the users; but, it has the disadvantages. It is mainly because of a fact that the Bitcoin still is the new and young currency.