critical thinking assingment

716 Words2 Pages

Critical Thinking Assignment: Topic Argument Whether it is the mainstream media or the online community, cryptocurrencies, the new and emerging digital money transfer system, is gaining interest fast. One of the most popular cryptocurrency, Bitcoin, recently has been the subject to numerous criticism and negative speculation in the mainstream media due to the recent fall of Bitcoin’s largest currency exchange, Mt.Gox. However, despite negative media reports, Investing.com reported that Bitcoin prices have recently surged past $700 dollars, up 41% since the 25th of February of this year (Investing.com, 2014). Bitcoin’s rallying prices has shown that people have true faith in its future, and that cryptocurrencies in general, are here to stay and are the future of money exchange. Cryptocurrencies exist on a decentralized monetary system, meaning that there is no central authority, government, or institution that controls the flow of the currency (Quast, 2014). The main benefit of having a decentralized monetary system is the freedom of dismissing the need to rely upon a third party, such as a bank, for monetary transfers. Cryptocurrencies are stored on a user’s own computer, and uses a peer-to-peer system to verify transactions, allowing for faster and cheaper money transfers all around the world (Clark, 2013). Having a decentralized system also prevents the manipulation of money for political or institutional benefits, as the flow of money will be handled by an online network, as opposed to an institution. In addition, cryptocurrencies are not subject to inflation, as it will have a fixed rate of generation that slows down as quantities increase, and will stop the generation new currency once a capacity limit on the supply has bee... ... middle of paper ... ...d readers with the news of “the fall of Bitcoin’s largest currency exchange, Mt.Gox” as a contrary evidence to the claim. Moreover, this piece of news was widely popular in the mainstream media, thus it serves as an effective tool to be relatable to the reader and to generate interest among readers. Works Cited Critical Thinking Assignment: References Clark, J. (2013, March 5). Bitcoin: Decentralized Virtual Currency. Retrieved March 09, 2014, from Data Center Journal: http://www.datacenterjournal.com/it/bitcoin-decentralized-virtual-currency/ Investing.com. (2014, March 04). Bitcoin rallies above $700 as prices continue to rebound. Retrieved March 04, 2014, from investing.com: http://www.investing.com/news/forex-news/bitcoin-rallies-above-$700-as-prices-continue-to-rebound-270066 Quast, B. (2014). Bitcoin and Cryptocurrencies. The Graduate Institute Geneva, 1-4.

More about critical thinking assingment

Open Document