Bitcoin: Money Of The Future?
Bitcoin is slowly making its way into our daily vocabulary, the news, and maybe even your wallets. But what is Bitcoin and how does it work? According to its website, "Bitcoin is an innovative payment network and a new kind of money.” It’s basically a new online digital currency that’s been around since 2009 but has just recently became popular because of advancing technology. We’ve had digital currencies for a long time, such as Microsoft Points on Xbox, or Facebook Credits, but the differences between those and Bitcoin is that Bitcoin is decentralized, which basically means that there is no one physical location where buyers go to purchase or sell currencies. For example, when you buy Microsoft Points, you can only use them on Microsoft goods, and buy them directly from Microsoft. The same goes for Facebook Credits. But not Bitcoin, as there is no company, no building dedicated to it, and no servers that can be hacked. Well, how much is one Bitcoin, you ask? As of the very moment I’m typing this, one Bitcoin is worth $812.50. But, since it is a currency, inflation does have an affect on it, so by the time you read this, the value of a Bitcoin may be smaller or larger than $812.50. You might be wondering, how do I get a Bitcoin? One way is by exchanging your local currency, like the US Dollar, just like foreign money. While all of this might sound like a neat idea, there are some questions as to how safe Bitcoin is, what its purpose is, and how it will affect the economy, not just in the United States, but in the world.
Understanding Bitcoin and what its intent is leads me to think that it’s a fascinating concept, but confusing at the same time because many, including myself, do not fully comprehend what its point is, and how much it will affect, mainly because experts can’t even fathom how many things it will have an impact on. I find this nerve-racking and mysterious. So my central question is this: Is Bitcoin going to be more beneficial to our economy and our society, or will it be so disastrous that it could lead to economic downfall?
One strong critic against Bitcoin is Charlie Stross who is a British author of science fiction and fantasy. Stross recently posted a blog with the title Why I want Bitcoin to die in a fire. In the post, he says, “For starters, BtC (Bitcoin) is inherently deflationary. This means the cost of generating new Bitcoins rises over time, so that the value of Bitcoins...