VIRTUAL CURRENCIES AND FINANCIAL DECENTRALIZATION: THE CASE OF BITCOIN

Abstract

Virtual currencies in general, and Bitcoin in particular, are currently the most used and famous ‎compared to other circulated cryptocurrencies. Bitcoin is considered one of the currencies that ‎has been fully implemented. A cryptocurrency is a decentralized peer-to-peer virtual currency. ‎Exchange operations between users are conducted without resorting to a bank to manage the ‎transactions. This explains one of the major advantages offered by this system: low costs or ‎low transaction fees, which are much lower than those provided by banks in terms of modern ‎and traditional payment methods. To ensure the validity of transactions and the dissemination ‎of this type of money, encryption technology is used.‎