Bitcoin made its first appearance in 2009 and immediately begun a new disruptive revolution with an era of cryptocurrency. Today, there are more than 700 different digital currencies, but bitcoin still remains the leader in the industry. While tax authorities, enforcement agencies, and regulators in different countries are still trying to cope with this recent phenomenon, one question arises — is bitcoin legal? In this article we will try to answer this question.
Bitcoin is an effective solution when it comes to sending or donating online. Donations can be seen by the general public, which helps find a better financial solution and greater transparency for non-profit organizations. Also in emergency situations, such as natural disasters, donations to Bitcoin arrive faster to those who need them, thus reducing international response time and being extremely effective as a smooth way to transfer values. Although there are still very few initiatives, we are already seeing the first crowdfunding projects related to Bitcoin appear more frequently.
Proof-of-Work prevents users from spending the same money twice, without needing a central authority to distinguish valid from invalid transactions. Bitcoin creates an incentive for miners, who run powerful computers in the network, to validate transactions and to secure them from future tampering. The miners are paid by “discovering” new coins, and anyone with computational resources can anonymously and democratically become a miner.
Distributed Ledger – Bitcoin puts a history of each and every transaction into every wallet. This “block chain” means that anyone can validate that a given transaction was performed.