Bitcoin is a new form of digital currency, or a cryptocurrency that has drawn global attention recently. It is circulated on a totally decentralized, peer-to-peer network based system, which is a technological breakthrough that allows purchases and sales without involving a trusted third party, such as Visa Inc. or Western Union Co. However, Bitcoin as a currency has its drawbacks such as a potential deflationary bias similar to the gold standard, high volatilities of exchange rates within a short period, unstable legal status, and hacking and security threats to the currency exchanges. While it is difficult to forecast what the future of Bitcoin would be like, a digital currency itself would survive in the sense that there will be still demand for digital currencies and technology advances to support them. This phenomenon of Bitcoin on one hand implies that central banks might not function as the monopolistic money suppliers any more. On the other hand, digital currencies would be necessarily regulated in the process of finding a compromise that does not significantly affect many of the traditional monetary and financial systems.