Today almost everyone knows that bitcoin is more than a currency. It goes beyond all existing national and electronic currencies. Payment systems encompasses a much broader scope than simple commodity-money relations. What is bitcoin? The new philosophy? A new religion? Something that will change the global world order and worldview? To give a precise definition it's still early, but to identify criteria that make the bitcoin more than the currency you can even now.
Bitcoin is not controlled by any country government and not a private company. Cryptocurrency has no legal status in the world, and the governments of different countries have different attitudes to it. In several European countries bitcoin has the status of a commodity or investment asset officially can be used in financial transactions. In other countries the currency is banned or severely restricted. And in many countries, the government completely ignore bitcoin, not giving to it any rating.
A unique accounting system transactions, forcing to reconsider the relation to any existing banking system. Blockchain — the public register of all ever committed transactions in the bitcoin, allowing users to complete transactions without having to trust each other or a third party — the mediator. The blockchain has great potential: in the future this system can be used outside of bitcoin.
As already mentioned, there is no owner of bitcoin itself, but that's not all — the network itself is peer to peer and has no Central node or master servers that you can attack with fraudulent purposes. Bitcoin is more than any other currency even so — it is impossible to "Rob a Bank" of bitcoins.
Mining is not just a term of “getting” new bitcoins, it is also a method of execution of all computational operations in the transaction and, in banking language, the issue of new money.
This is only the main point which clearly prove to us why bitcoin is more than a currency of any country or its electronic equivalent. Bitcoin in the future can radically change the philosophy of the people in the field of financial and monetary relations. In the case of mass distribution of bitcoin, banks will completely disappear and people will become in the fullest sense “masters of their own money”.
Looks like a classic wallet with cash, credit cards and checks will soon leave in the past. What will replace it? Bitcoin and perhaps other cryptocurrencies.
How does it happen?
Any currency before becoming a full-fledged means of payment must undergo a number of stages of its development:
Bitcoin became the tool of accumulation from the very first of its days — at a time when cryptocurrency just started. Its work was experimental in nature, users are just mine bitcoins, accumulating them and making transactions periodically to each other to test the capabilities of the system.
Over time the transactions become more applied in nature: the fans paid each other, some small services bought and sold within their community of goods. Someone traded cryptocurrency for "real" money. At this stage, bitcoin has already become tender within a restricted group of people.
Everything changed when the cryptocurrency has attracted the attention of outside investors. They began to invest in it. Due to the high liquidity and volatile exchange rate fluctuations, bitcoin has attracted many players and speculators. The course of bitcoin has increased dramatically many times, it became interesting. Later it began to be accepted by a number of suppliers of goods and services.
Bitcoin wallet — software that stores data on the user's device or in the web. With this wallet, the user keeps a record of his/her bitcoins, commits the transaction and receive funds, i.e., uses both classic wallet, only much more convenient and protected.
A time when bitcoin wallet will replace our usual wallet, depends on when cryptocurrency will become really popular. This requires that the system involved as many people as possible to economically built relationships, opened the firms conducting accounting of their budgets only in bitcoin.
Such an active and massive use of cryptocurrencies will stabilize its course and withdraw from the category of pilot projects, and that's when the bitcoin wallet will be the same everyday thing, which today is the wallet.