Online Cash Bitcoin Could Challenge Governments, Banks
The Bitcoin digital currency also works a lot like cash in that it’s anonymous. When you go to a flea market and pay cash for an old Commodore 64, there’s no record of the transaction. You don’t have to know the seller’s name, and the seller doesn’t need to know yours. Digital currencies by contrast rely on accounts, and have to collect at least some information about you. Because Bitcoin employs no such accounts and instead relies on public key cryptography , there’s no way to know, just looking at the database of transfers, who sent money to whom.
A Revolutionary Concept
Bitcoin is potentially revolutionary for several reasons. For one thing, artificial currency inflation is impossible.