Virtual currencies are increasingly becoming part not only of the virtual world but also of the real one. There are many problems associated with virtual currencies. Due to its similarity to paper money, many questions have arisen regarding its acceptance among people in the market. Virtual currencies are becoming increasingly popular, and although they were widely used by speculators, they saw them as a way to make money by buying them at lower prices and selling them at higher prices (much like foreign currency trading). According to Zakary M Seward (2013), “Virtual currencies have been viewed as a form of electronic money or an area of ​​payment systems technology that has evolved over the past 20 years” (Seward, 2013). Virtual currency like Bitcoin is not issued by the central bank; they are instead created or mined by a group of anonymous programmers under the name Satoshi Nakamoto (Barry, 2014). Bitcoin can be sent and received over the internet, similar to sending cash digitally. The currency is exchanged through the decentralized Bitcoin network, without going through an external financial institution or government. Virtual currency is a big deal. People from all over the world can exchange virtual currencies for traditional currencies through online services. Many customers exchange goods and services using virtual currency such as Bitcoin. If people buy bitcoin, they don't physically purchase goods by handing over notes or tokens to the seller. They are used for electronic purchases and transfers. Many large companies use the form of virtual currency. For example, Apple offers iTunes users the ability to purchase prepaid iTunes gift cards that contain credits that can be redeemed for music and movies. You...... half of the paper ......en Perklberg (2013), The Fed does not have the authority to supervise virtual currencies but they could hold long-term promise, particularly if the innovations promote a faster, safer and more efficient payment system (Perklberg, 2013). The Chinese government has banned Chinese banks from making transactions using bitcoin. The Reserve Bank of India has also warned bitcoin users, holders and traders about the potential financial, legal, customer protection and security risks they are exposing themselves to. All in all, virtual currency is a new concept but one that is in the process of being understood and adopted by a growing number of consumers, merchants, and investors around the world. Virtual currency carries some technological and financial risks. More consumers, merchants and investors should start learning about and using virtual currency.