What really are Bitcoins?
Bitcoin is a form of digital currency, created and held electronically. No one controls it. Bitcoins aren’t printed, like Bond Notes, dollars or rands they’re produced by people, and increasingly businesses, running computers all around the world, using software that solves mathematical problems.
Bitcoin was created in 2009 by an unknown person using the alias Satoshi Nakamoto. Transactions are made with no middlemen meaning no banks! There are no transaction fees and no need to give your real name. More International merchants are beginning to accept them.
Regardless that the Reserve Bank of Zimbabwe director and registrar of banking institutions, Norman Mataruka said in a statement said, “In terms of the bitcoins, as far as we are concerned, it’s not actually legal. In Southern Africa, what we have done as regulators, we have said that we will not allow this in our markets”
A lot of people are getting into the use of Bitcoins saying that making international payments are fast, easy and cheap because bitcoins are not tied to any country or subject to regulation since all local banks are not allowing international payments. Small businesses may like them because there are no credit card fees. Some people just buy bitcoins as an investment, hoping that they’ll go up in value.
No one knows what will become of bitcoin. It is mostly unregulated, but that could change. Governments are concerned about taxation and their lack of control over the currency.