Bitcoin The Cryptocurrency: Stimulating Global Economic Growth

995 words - 4 pages

Bitcoin the Cryptocurrency: Stimulating Global Economic Growth

Bitcoin is a technologically innovative solution for some common economic issues as well as fraud and identify theft. This cryptographic digital currency simultaneously provides users a method to exchange money for free or a nominal fee which is mutually beneficial for retailers and consumers. Bitcoin digital currency is similar to physical cash stored in a digital form. It is the first fully implemented cryptocurrency protocol utilizing an open source peer-to-peer payment system. As a transfer protocol, it fundamentally functions as a money transfer medium that sends bitcoins from user to user without the need of a third-party ...view middle of the document...

This should be partially reflected in a decrease in cost of the goods purchased with bitcoins. For consumers, it means faster payments than cash, credit, and debit transactions. Paying with bitcoins also spares the consumer possible ATM transactions fees. Bitcoin’s transactions either occur with no fees or very low fees (down to fractions of pennies). Bitcoin has also positively impacted international remittance. Many low-income people work in foreign countries to earn money to send support their families in their home countries. According to World Bank, people send over $400 billion annually. These proprietary systems like wire transfers, money orders, and check processing charge fees that average about 9% and peak at 25% of the total amount being sent. Switching to Bitcoin would improve the quality of life of migrant workers and their families significantly. Drastically reducing the remittance cost would affect many migrant workers, the poverty-stricken, and the under-banked in the poorest of countries. This innovative technology has the potential to promptly impact this broken and unfair system by reducing fees substantially and adding to the economies of these third world countries, which will create jobs, increase health care, and improve sanitation worldwide. Price deflation caused by technological progress is a beneficial side effect of Bitcoin since the real value of a bitcoin increases over time.
Bitcoin is a breakthrough in computer science built on 20 years of research on cryptographic currency, and 40 years of research in cryptography, by thousands of researchers around the world. Practically all forms of disruptive technology have been confronted by intense scrutiny and skeptics. Critics debate rationed usage of bitcoins by average consumers and retailers, however, personal computers in 1975 and the Internet in 1993 received the same level of criticism during the equivalent stages as Bitcoin. Eventually, each of these became mainstream products and the effects were profound. The success of those inventions increased everyone’s standard of living. Through the innovation of technology, many functions have migrated online including...

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