Bitcoin May Be the Global Economy's Last Safe Haven
Interesting fact about Bitcoin: Nobody knows the real name of the creator (or creators). We have no clue who did it, other than the person goes by Satoshi Nakamoto. Bitcoin is still very small in comparison to other companies. Yes, an entire "currency" has a smaller market value than many single companies. The value of one Bitcoin is about $78 dollars (March 2013) and in March there were 10,952,975 Bitcoins in circulation. A thought behind the Bitcoin is an interesting one, with the entire world using the Internet, isn't the Bitcoin a step towards a global currency?
What makes the Bitcoin different from PayPal? Bitcoins are purchased using the U.S. dollar, the Euro, or whatever the currency in an area is. The same thing happens on PayPal. PayPal keeps track of things in terms of the currency being used. Everything is not done in the U.S. dollar on PayPal. With Bitcoins, everybody is using the same currency even if they purchased something with euros or dollars. One person in Brazil can buy something from a person in Pakistan that is selling something for two Bitcoins. There wouldn't be an issue with exchange rates. The person simply now has two more Bitcoins. People tend to question the legitimacy of the Bitcoin. It was created by an anonymous person. No one knows who it was, but let's face it, Bitcoin works. There has been speculation that Bitcoin was just a joke that was meant to satire the global economy, but that joke has made people seriously consider its possibilities. the technology to back it has been flawless, so if it was in fact a joke, it's gotten a little more serious. The ideas of global currencies have been explored before with much rejection, but this seems to be working. What do you think?
- David Gerhart
I like this idea. Bitcoin makes everything much easier. I hate how sometimes when I have to purchase something in Vietnam, they charge me more than what it actually costs in U.S. dollar. However, you said one Bitcoin has the value of $78 dollars. What if we want to buy something that has the value less than $78 dollars? Can Bitcoin be broken down into smaller units?
ReplyDeleteBitcoin is certainly a currency on the rise, and the positive implications it could have on the international economy do in fact make it a legitimate option. Because the currency is universal, there won't be struggles between markets to say that their form of currency is better. It is simplistic and uses technology that makes it less susceptible to things like inflation. Personally, I would support the use and expansion of Bitcoin.
ReplyDeleteWith Bitcoin, now anyone can buy something from anywhere around the globe without have to exchange their currency, it is a simple and effective way for a more connected global market. Just like anything electronic though, it can undergo glitches in the system and there is no doubt that there have been people who can hack into other people accounts and take their Bitcoins. You just have to be careful with your money. Also, if your account is hacked and you prove it, can you get a refund fund for the money you spent on the coins?
ReplyDeleteI think that it is pretty cool that something can be bought half way around the world without any exchange rates. The idea of virtual money is great for internet purchases so someone can buy anything form anywhere. With technology always advancing this doesn't surprise me that people are experimenting with inline money. The only thing is that until the company grows and becomes more known I just don't know that many people would accept it. It is really strange to me that the creator is unknown, if you invent something cool wouldn't you want credit?
ReplyDeleteBitcoin definitely makes buying goods from around the world more convenient. I do think though that Thao raises a good question of, Can bitcoin be divided? I also think the question of security comes up because bitcoin is all virtual and with hackers now a days, I wonder how safe your money is. Obviously there are plenty of issues that need to be worked out with bitcoin, but it is definitely on the rise and once bitcoin has more work done on its issues I think it would be a good for currency.
ReplyDeleteI find it very exciting that we could be witnessing the rise of a brand new form of currency. Watching Bitcoin over the years will provide a fantastic example as to how currency works, and how it becomes rooted in a society. While I am dubious of virtual money in general right now, I see a bright future ahead for Bitcoin and other digital monies. This could change the way our entire economy works!
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