To what extent will crypto-currencies affect the worlds economy?
Introduction
Firstly, an insight into crypto-currencies, what they are and how they can benefit the worlds economy. A crypto-currency is ‘digital medium of exchange’(RhettandLink) - managed through extensive encryption techniques known as cryptography. Comparable with fiat money, no group or individual can stunt, increase or abuse the production of crypto-currencies. No economic systems can regulate the production or value of the currency, the system that crypto-currencies are based upon was created by Satoshi Nakamoto - purposely creating Bitcoin which the practise of fractional reserve banking would be virtually impossible. Bitcoin is currently the most successful crypto-currency to date - created in 2009, this anonymous decentralized digital currency has been the target of several raids and hacking sprees; the media are contemplating the significance of Bitcoin in our current worlds economy. Whether it has potential of overruling fiat-currencies or if it’s just a puerile project created by the aberrant Satoshi Nakamoto.
Global Perspective
Since its creation in the ‘60s, the Internet has paved the way for numerous phenomenons that have affected the way that we live, the way we communicate and that have affected the worlds economy. One of those phenomenons include the prosperous crypto currencies. A country where crypto-currencies have succeeded is both the United States and Japan; Bitcoin’s creator originated from Japan. These two countries possess the two largest crypto-currency exchanges, with Mt. Gox in Japan dealing over 70% of all Bitcoin transfers and exchanges. The btc-e is the American
(TheNextWeb. 08 Jan. 2014. Web Image. 21 Mar. 2014.) counterpart. As ...
... middle of paper ...
...global organizations, demographics and communities are responsible for the large success of the many crypto-currencies on the digital market today. From my discovery of crypto-currencies in late 2013, I have discovered a major trade community with the international population. The crypto-currencies are growing largely in size and popularity. I am concerned over the stability of crypto-currencies - many of types currencies have suffered major capital loss, decrease of market cap, theft, illegal trade etc.. These certain currencies could be a hazardous to deal with in the future. 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.
... middle of paper ... ... The Web. The Web.
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.
... middle of paper ... ... The Web. The Web.
“The Economist Explains, How Does Bitcoin Work?” The Economist (2013): n. pag. Web. 08 Apr. 2014.
... middle of paper ... ... How true that is, I don’t know.
Banking on Bitcoin acknowledges these opposing arguments throughout the film but negates them with many different rhetorical elements. The opposing argument does not stop this documentary from being effective in persuading people to use Bitcoin. Cannucciari has supplied sufficient evidence and logic along with rhetorical elements to persuade one into using Bitcoin. The concepts in this documentary support themselves and are still growing today. It would be no surprise to find that this documentary helped the growth of Bitcoin over the last
Michael Rodriguez James Maughn English 1A 20 May 2015 bitcoin fantasy. The Nation. The World. The World. ARE DIGITAL CURRENCIES THE FUTURE OF MONEY?
"Regulation of money supply needs to be depoliticized... especially as it applies to virtual currencies" - Al Gore
Bitcoin operates as both a currency and as a peer to peer payment network. Introduced in 2009, it uses cryptography to control the creation and transfer of digital tokens that represent real fiat currency value. As a currency it has a very high level of volatility as we’ve seen its value rise to over $1000 in early 2014 and as of May 2014 reside around $450. The wide fluctuation in price is what many believe to be one of the greatest hurdles for bitcoin to overcome in order to survive as a currency in the distant future.
Bitcoin can be easily used as digital currency in many African & Asian countries where the reliability in their national currency is very low due to severe economic conditions.
Today, couple of monetary forms are completely upheld by gold or silver. Subsequent to most world monetary standards are fiat cash, the cash supply could increment quickly for political reasons, bringing about inflation. The
The invention of money was a major improvement in peoples’ lives. In the past, people usually had to travel all day to find the person who is willing to exchange their goods. In addition, the goods people want to exchange did not have the standard value of measurement. This led to unequal exchanges. Furthermore, it is not convenient to carry heavy goods from one place to another for an exchange. To solve these issues, money will be the only solution. Later, people tend to develop money from cowry shells to credit cards for the convenience and to improve their society.
A cashless society will further improve the globalisation that characterise our present time. The computerised systems can be used to decrease the quantity of paper trail therefore substituting paper cash with cashless credits or electronic money transfers. However, in a cashless economy, this will change with certain crimes almost eradicated. It will also be faster to generate electronic payments than cash as Near Field Communications (NFC) chips make their way into more payments cards and mobile handsets as well providing protection not applicable to purchases made using cash. This technology is simple with low power wireless link evolved from radio-frequency identification (RFID) tech that can transfer small amounts of data between two devices identifying us and our bank account to a computer. Another benefit of drawing nearer to a cashless society is that other companies are providing pioneering cash-free solutions to the payment related problems we come across. For example, WisePay, a provider of e-payments services, is deploying technologies that ensure parents no longer have to worry about sending their children to school with cash to pay for meals, excursions and other fees that will eliminate the likelihood of being caught short for cash or children misplacing money. The Government also has valuable explanations why they may deem to turn away from cash. Due the main factor of printing and distributing cash, not to mention ensuring the economy is free from forgeries which are all costly endeavours estimating that the cost to society of using cash is between 0.5 and 1.5% of GDP annually. In addition, there are many technological innovations that propose there is a real enthusiasm for an alternative to cash with the upsurge...
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.