Bitcoin is a cryptocurrency and payment system introduced in 2008. New bitcoins are created by a process called mining where users are rewarded by bitcoins for providing their computational power for providing computing power to verify the transactions.
In the http://finance.yahoo.com/news/why-chinas-central-bank-fears-bitcoin-192321568.html article shows how the counties are increasingly monitoring virtual currencies and operators. This has resulted in changing of terms for the firms. In my view, this might cause people to refrain from using this currency.
Here are my views on Bitcoin advantages and disadvantages
Advantages:
- Global currency can be used anywhere.
- Can be transferred anywhere in the world in very less time across the world.
- Protects from geographic and currency fluctuations
- Reduced no of intermediaries in payment system
Disadvantages:
- No physical backing: can collapse anytime
- Illegal activists can use it to avoid any suspension
- Bitcoin price volatility greatly affecting its holders
- A Safe haven for holders. Difficult to be monitored by countries
- Countries like china are increased monitoring the bitcoin companies
Reference: http://finance.yahoo.com/news/why-chinas-central-bank-fears-bitcoin-192321568.html
https://en.wikipedia.org/wiki/Bitcoin
http://www.coindesk.com/china-bitcoin-exchanges-trading-policy-updates/