Bitcoin is a digital, decentralized, partially anonymous currency, not backed by any government or other legal entity, and not redeemable for gold or other commodity. It relies on peer-to-peer networking and cryptography to maintain its integrity. Compared to most currencies or online payment services, such as PayPal, bitcoins are highly liquid, have low transaction costs, and can be used to make micropayments. This new currency could also hold the key to allowing organizations such as Wikileaks, hated by governments, to receive donations and conduct business anonymously.

Although the Bitcoin economy is flourishing, Bitcoin users are anxious about Bitcoin’s legal status. This paper examines a few relevant legal issues, such as the recent conviction of the Liberty Dollar creator, the Stamp Payments Act, and the federal securities acts.

At present, bitcoin is held mostly as a speculative vehicle, little used to pay for goods and services. Its value has been unstable, which impedes bitcoin’s wider use as a payment medium. We explain why the value of bitcoin has been so unstable. Then, we discuss entrepreneurial efforts that might enable bitcoin to become a more commonly accepted payment medium.

Bitcoin is really interesting and is a solid model ,however maybe the thing that makes it volatile is the public opinion .In order to achieve success it would need to overcome the reputation problems related to its association with teething issues and criminal activity

Bitcoin has lots of specific tools which makes it better than any fiat currency. For example I like the fact that it’s independent from economical system in any country. I think so because there are lots of people, who don’t know what’s gonna happen with the value of their national currency and banks of their country tomorrow. For them btc, as instable as it is, may be a way out of shaky economic situation.