The Bitcoin is what is called a cryptocurrency—money that is completely virtual and is neither distributed nor regulated by a centralized government. The crypto part of cryptocurrency refers to the heavy cryptography (encoding) used to request, confirm, and record the transactions within the context of a decentralized system. The advantage of the system is that two parties can exchange payment without the use of a third party (such as PayPal, VISA, banks, or the federal government) to validate the worth of the currency. The More importantly, by replacing the third party with the cryptographic proof of the transaction, both parties can remain completely anonymous. The relationship between the national governments and cryptocurrencies such as bitcoin is dynamic and ranges from being ignored, to being outlawed, to being taxed.
Manipulation-
Fearing that market manipulation may play a factor in the value of cryptocurrencies, the United States Department of Justice launched a criminal probe at the end of May into whether traders were manipulating the price of bitcoin and other digital currencies.
