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Bitcoin's future essay
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Bitcoin Bitcoin is a digital currency that was started in 2009. It is a digital representation of currency with no actual tangible representation. Bitcoin, commonly abbreviated as BTC or XBT, is distributed worldwide, decentralized digital money (also called cryptocurrency). It is decentralized, meaning it is not controlled nor backed up by any government, country, or individual entity. Unlike traditional currencies, such as dollars and euros, bitcoins are issued and managed without any regulation from any central government. Thus, it is more resistant to inflation and corruption. A Bitcoin derives its value basically from the demand and usage of bitcoins, similar to a stock. Bitcoin doesn’t derive its value from the government; it derives its value from the people. The more that use/accept it, the more of a demand there for it, and the more valuable it becomes. Bitcoin is controlled by the people; you are your own bank. Transaction terms are determined by the user. Bitcoins can be bought with credit cards, PayPal, bank transfers, or even going to a local bitcoin exchange and buying them with cash. A person can acquire bitcoins as a payment for goods or services, purchase them with real money at a Bitcoin exchange, exchange bitcoins with someone you know, or earn bitcoins through performing mining services for the network. It has value and can be exchanged for real physical money, it’s valued exchange rate goes up and down like a stock, and it’s traded online like PayPal, but it is none of these. It’s widely considered as the future of world currency, but also scrutinized as a gateway for illegal activity. So which is it? New bitcoin are created by the intensive user task called “mining.” A miner solves mathematical algorithms w... ... middle of paper ... ... N.p., n.d. Web. 22 Apr. 2014. 7. "Bitcoin Watch." Bitcoin Watch. N.p., n.d. Web. 22 Apr. 2014. 8. Brustein, Joshua. "If Bitcoin Remains Impractical, Treasury Will Let It Be." Bloomberg Business Week. Bloomberg, 18 Mar. 2014. Web. 22 Apr. 2014. 9. "Canada to Tax Bitcoin Users - CoinDesk." CoinDesk RSS. N.p., n.d. Web. 22 Apr. 2014. 10. "Disadvantages." Bitcoin. N.p., n.d. Web. 22 Apr. 2014. 11. "Goldman Sachs Sees Bitcoin Future in Payments Over Money." Bloomberg.com. Bloomberg, n.d. Web. 22 Apr. 2014. 12. "The Good, The Bad And The Ugly Of Bitcoin Security." Hongkiatcom RSS. N.p., n.d. Web. 22 Apr. 2014. 13. Gurus, Tech. "Don't Fight It. Bitcoin Has a Bright Future." CNNMoney. Cable News Network, 10 Dec. 2013. Web. 22 Apr. 2014. 14. Hill, Kashmir. "Congress Is Nervous About This Whole Bitcoin Thing." Forbes. Forbes Magazine, 15 Aug. 2013. Web. 22 Apr. 2014
Central Intelligence agency , "Canada ." Last modified November 12, 2013. Accessed November 27, 2013. https://www.cia.gov/library/publications/the-world-factbook/geos/ca.html.
This currency is decentralized as there exists no central controlling body. Unlike normal currencies, bitcoins don’t exist physically. They are used to transfer funds between two parties at a smaller fee. They are created through a procedure referred to as mining where people use computers to solve very complex mathematical problems. Bitcoins came into existence in early 2009 by a mysterious figure only known as Satoshi Nakamoto. Nobody knows who this person, group of persons or organization is. With no middle men and excess fees, bitcoins can be used globally to make
typical office or home computer. The difficulty of the mathematics problem is such that Bitcoins will be discovered at a limited and predictable rate system wide.
PKC is the enabling technology for all Internet security and the increasing use of digital signatures, which are replacing traditional signatures in many contexts. However, RSA is better than PKC because RSA doesn’t need digital signature. As a result, the RSA algorithm turned out to be a perfect fit for the implementation of a practical public security system. In 1977, Martin Gardner first introduced the RSA system. After 5 years, company RSA used secure electronic security products. Nowadays many credit companies of all over the world use the RSA system or a similar system based on the RSA system.
Goodale, Gloria. "Rise of Bitcoin: Is the digital currency a solution or a menace? (+video)." The Christian Science Monitor. The Christian Science Monitor, 23 Nov. 2013. Web. 25 Nov. 2013. .
A cryptocurrency is like any other currency, except it is under no central control. This means that as opposed to governed currencies, cryptocurrencies are created by private individuals and are fully decentralized. They function on a peer-to-peer basis, meaning that all transactions have to be confirmed by the Bitcoin-Network. In order to do so, transactions are publicly displayed in the network. This however is done anonymously by giving each user an address; an alias so to speak. The currency can only be successful if the people involved trust each other. But while with normal money only the central bank must be trusted, with decentralized cryptocurrencies anonymous users have to be trusted. For this reason, a type of public ledger lies at the core of the cryptocurrency: the blockchain. The blockchain records verified transactions and gives the
The topic that I’m going to write about in this paper will be on the electronic currency released in 2009 known as Bitcoins. Bitcoins is a type of currency that entails computer software to be used with one person exchanging with another person for a different kind of trading option such as the US dollar, products or services. There is a fourth reason why Bitcoins can be exchanged which is done when a person is mining, that occurs when a participant acts as a mediator for transactions whereas mediator approves and documents. Bitcoins is one of the largest and first electronic currencies ever created by any developer including the makers Satoshi Nakamoto. Bitcoins doesn’t meet the characteristic guidelines to be considered an actual type of currency, though the US Treasury recognizes it as a type of decentralized currency in that no person or organization including governments oversees the transaction of Bitcoins.
In July 2015, many of the world’s high ranking cryptographers published that the loss and destruction induced by adopting a key escrow system 20 years ago would be even more serious, that would be very hard to identify security weaknesses that could be misused by
Krugman, Paul. "Bernanke and the Bubble." NY Times 28 Oct. 2005. Friday Sec. A: 21.
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...
While Bitcoin is a currency, it is really better to understand it as a public ledger. This ledger which is viewable by anyone, records every transaction within the network, and verifies the transaction from every computer on the network. This is the algorithm that the invention of Bitcoin solved. This system is very similar to the ledger that banks use to manage money electronically in their systems. While their system is controlled by a private company, Bitcoin is totally decentralized. It is not a corporation or bank deciding what is happening with your money, it is not decided by anyone buy you. It is simply confirmed using validated math and proven computer science.
Sommer, Jeff. "The Two Sides of Bitcoin." The Hindu. The Hindu, 25 Nov. 2013. Web. 05 Jan. 2014. .
Michael Rodriguez James Maughn English 1A 20 May 2015 bitcoin fantasy. The Nation. The World. The World. ARE DIGITAL CURRENCIES THE FUTURE OF MONEY?
Four years ago, the idea of buying a pizza with a digital currency was a foreign concept. Most people hadn’t heard of Bitcoin, a mysterious digital currency that cropped up in 2009, created by the pseudonymous “Satoshi Nakamoto.” Today, almost 13 million bitcoins exist in circulation, valued at approximately $8 billion USD (1 BTC = approximately $600 USD) [1]. With the surge of popularity in the product, several spin-offs have been created, namely “Ripple” and “Dogecoin.” What do Bitcoin, Ripple, and Dogecoin have in common? They are all classified as a “cryptocurrency,” : a medium of exchange by which principles of cryptography are used to create a distributed and decentralized economy [2]. Bitcoin was the first cryptocurrency to be traded, and thus has the largest following and valuation.
...naires created due to the vast amount of coin early adaptors managed to gather. In order for the future of cryptocurrencies to ultimately reach that milestone of replacing fiat currency as a mainstream, standard payment option, and for its future as both virtual, decentralized currencies and as tradable assets, it is currently looking to be very bright. Although a great deal of progress has already been made in this regard, there is still quite a lot that needs to be done. Yet, optimism should remain in tact as improvements are constantly taking place and cryptocurrency continues to draw the attention of millions throughout the world, with many financial analysts predicting an even more significant growth in cryptocurrencies’ values. As the uses and advancement in technology continues daily, our society continues to become more and more digital in every passing day.