Bitcoin: Currency of the future? - WTOC-TV: Savannah, Beaufort, SC, News, Weather & Sports

Bitcoin: Currency of the future?

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Some call it pretend internet money, but Bitcoin is usingpeer-to-peer technology in an effort to revolutionize digital currency.

Shaun Beaudry, manager of Anonoymous Tattoo, first heardabout Bitcoin in 2011.

"I was really skeptical at first.I thought it was like magical internet money," he said.

This may sound bizarre, butessentially, Bitcoin really is internet money.According to the company's website, Bitcoins are digital coins you can sendthrough the internet.

Bitcoin is nothing like PayPal,where you load money from your bank account. In fact, the currency istransferred from person-to-person, and banks are never involved.

"It gives you a complete accessover your money, you don't even need a bank," Beaudry said.

Ty Melancon, a computer expert atDigital Doc, said this is what makes the technology appealing.

"It's not backed by any bank,government, or central agency. It's whatever people put into it."

The currency is generated bywhat's called mining. The website says it's a free application which requireswork for a certain amount of coins.

The process creates a competitionamong users to get a block of coins. Unfortunately, it takes more than youraverage PC or laptop to use this technology.

"If you go online, people areselling specifically made Bitcoin machinesthat cost somewhere up to $3,000."

Despite this, Beaudry believesit's a wise investment because, if and when Bitcoin goes mainstream, hiscompany will end up saving hundreds of dollars in transaction fees.

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