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The advantage of bitcoin
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Bitcoins experienced tremendous growth in 2017. World leading retailers such as Dell, PayPal, Microsoft and Expedia accept bitcoins as a means of payment. Publications are always publishing bitcoin news and forums discussing this cryptocurrency and how its traded. This has resulted in a lot of media and investor attention. This article, therefore, tries to explain to the readers what bitcoins are, how to buy them, their features, how they work and their advantages. Bitcoins emerged following the 2008 financial crash where banks were accused of mishandling clients’ funds, duping them and charging abnormally high fees. This prompted innovators to think of a way of solving the issue so that it would not happen again in the future. As a result, bitcoin pioneers thought of creating a currency that would put the transacting parties only in charge of their finances by eliminating middlemen, cancelling interest fees and ensuring that transactions are transparent. Bitcoin was therefore invented to facilitate the efficient transfer of money between two parties with no intermediary in-between at a cheaper cost and higher speed. Since their creation in 2009, bitcoins have grown tremendously. During the launch in 2009, bitcoins were worth a few cents, but as of January 2018, a single bitcoin was trading at about …show more content…
This currency is decentralized as there exists no central controlling body. Unlike normal currencies, bitcoins don’t exist physically. They are used to transfer funds between two parties at a smaller fee. They are created through a procedure referred to as mining where people use computers to solve very complex mathematical problems. Bitcoins came into existence in early 2009 by a mysterious figure only known as Satoshi Nakamoto. Nobody knows who this person, group of persons or organization is. With no middle men and excess fees, bitcoins can be used globally to make
Goodale, Gloria. "Rise of Bitcoin: Is the digital currency a solution or a menace? (+video)." The Christian Science Monitor. The Christian Science Monitor, 23 Nov. 2013. Web. 25 Nov. 2013. .
The topic that I’m going to write about in this paper will be on the electronic currency released in 2009 known as Bitcoins. Bitcoins is a type of currency that entails computer software to be used with one person exchanging with another person for a different kind of trading option such as the US dollar, products or services. There is a fourth reason why Bitcoins can be exchanged which is done when a person is mining, that occurs when a participant acts as a mediator for transactions whereas mediator approves and documents. Bitcoins is one of the largest and first electronic currencies ever created by any developer including the makers Satoshi Nakamoto. Bitcoins doesn’t meet the characteristic guidelines to be considered an actual type of currency, though the US Treasury recognizes it as a type of decentralized currency in that no person or organization including governments oversees the transaction of Bitcoins.
Boring, Perianne, “Bitcoin Basics For The '76 Percenters' Who Don't Have A Clue What It Is.”
The primary benefit of Bitcoin is its speed over fiat transactions. Operators can receive a player’s deposit within an hour or less than a day. Even deposits from outside of the country are almost instant. Bitcoin can also protect operators from fraud and hacking attempts. One of the problems of many gambling sites or online retailers is chargebacks.
The article ‘Minting Pure Reason’ written by Jyotirmoy Bhattacharya concentrates on the mechanism of bitcoins, security concerns while trading using bitcoins and pros and cons of using bitcoins as a currency. The author also questions whether bitcoins, in future can replace actual currencies (referred to as ‘little pieces of coloured paper’ in the article).
Further, there exist other elements that characterized Bitcoin and crypto currency. These are; there is lack of regulatory management and oversight. This mean that the currency has got what is known as anonymity which results from shortage of oversight. In this case, it means that once the currency is in the market, government and legal roles fail thus putting the crypto currency out of the currency market. The crypto currency litter the black market due to lack of this regulatory.
The documentary Banking on Bitcoin from director Chris Cannucciari was a documentary released in 2016. Throughout this documentary Cannucciari asserts that the cryptocurrency Bitcoin is the future. Using Bitcoin experts and enthusiasts, this documentary is working to persuade people that Bitcoins peer to peer non-centralized system is the future and should be used over traditional banking methods. The targeted audience for this documentary is businesses, government officials, and anyone interested in the Bitcoin technology. The tone of this documentary is ardent while also informative.
Bitcoin is a digital currency, similar to cash due to the fact it is instant, however, is not managed or controlled by a central government or organization. Instead, the network is run on thousands of independent user’s computers. None of these computers have more control over the network than any other computer. The network that Bitcoin was founded upon is based on 40 years of research in cryptography and over 20 years of research in cryptocurrencies; by thousands of researches around the world.
From the picture, recent years the value of bitcoin has begun to skyrocket, from 2010 to 2017, it increased by more than 80,000 times. There is some analyzation about the reason of sharply rise.
But Bitcoin (capitalized as a concept, lowercased when referring to units of the currency, according to American Banker) is another animal entirely. It is the first and most famous of a large and growing family of so-called “cryptocurrencies.” Others include Litecoin, Feathercoin, Songcoin (“designed for The Music Industry”), Auroracoin (Iceland only) and Dogecoin (“the fun cryptocurrency”)—but Bitcoin is by far the largest. Its origin is traced to a 2008 paper written by the pseudonymous Satoshi Nakamoto. Newsweek recently claimed to have located the real one, but he promptly denied it, so the whole thing remains quite mysterious.
In recent times, the company Ripple and its crypto-token XRP have been spread far and wide around the monstrous void that is the internet. Via social media sites, YouTube videos, blogs, news headlines, and more XRP as almost become a household name. As a result of this widespread growth in popularity, masses of people have become obsessed with “Ripple” and want to know “how to purchase XRP” and “what the price of XRP amount to by year’s end”. With so much being said and so many people interested it is highly beneficial to inform the general public on what Ripple actually is and the precise function of XRP.
Virtual Currencies are increasingly becoming a part of not only the virtual world but also the real world. There are many problems associated with virtual currencies. Due to its similar to paper currency, a lot of questions have risen regarding its acceptance among the people in the market. Virtual currencies are growing in popularity and although they were large used by speculators who were looking at it as a way to make money by buying them at a lower prices and selling them at higher prices (much like trading foreign exchange).
One of the constants of currency is that it is constantly changing. Sometimes these changes are for the worse, and sometimes they are for the better. Changes in currency can cause prosperity or famine. Currency is reaching another stage of development due to the introduction of computer technology. Virtual currency has become a possibility for the future, and bitcoin is exploring that new idea. Bitcoin is a virtual currency that has the potential to be the future of currency and comes with both advancements and detriments.
The invention of money is perhaps one of the greatest achievements of human civilization. From the very beginning of society, people have used money to circumvent the difficulties of bartering and to foster trade and commerce. Since then, money has come a long way. No longer do we need to rely on silver coins, cocoa beans, or even anything of intrinsic value to conduct our business; today, we use paper currency, which is convenient and easy to carry around. But slowly, we are moving into the digital age of money, an age in which less of our money is actually tangible and more of it is just data on a computer server.
I believe trade and transaction of crypto-currencies should be encouraged on a local, national and global level. Although they have suffered major setbacks in the global economy, I maintain that crypto-currencies have a positive future and that they will undoubtedly affect the worlds economy.