Bitcoins: Revolution of Digital Currency

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The internet was a phenomenon that enthralled excitement in people during the 1990's when the internet became public and has since evolved to become a staple of our society. The evolution of the internet has been likened to that the commerce industry may be facing with the increasing popularity of Bitcoins and other forms of digital currencies entering the market (Tindell). Bitcoin is a digital currency that was created by a person obscured under the pseudonym, Satoshi Nakamoto (Maurer), on November 1, 2008. Bitcoin is an open-source online currency system that is secured by peer to peer connections. With the disappearance of Satoshi Nakamoto, the open-source code of the Bitcoin was modified and maintained by early bands of Bitcoin enthusiasts (Wallace). Bitcoin is not backed by any central authority or by a commodity such as gold, but rather relies on peer to peer networking and cryptography for the integrity of the currency (J.P.). This digital currency is stored in personal hardware on wallets or online wallets and due to its high liquid nature can be quickly transferred to other accounts over the internet (Grinberg). Bitcoin is a digital currency that has new features that distinguishes it from past attempts at digital currency and has major implications on our society including effects on our economic, legal, commerce, and global infrastructures.

Those interested in Bitcoins can acquire them in three ways: purchasing, accepting as payment, or mining. Acquiring Bitcoins in any manner involves installing the Bit client software and creating a wallet (Biggs). This wallet can either be created online or on personal hardware with recommended back-ups made in case of hardware failure. Bitcoin transactions cost only a very sma...

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