Viable Crypto Currency or Investment Bubble Essay

Viable Crypto Currency or Investment Bubble Essay

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Imagine a currency that can be sent around the globe instantly from one client to another, without any hefty transaction fees. Although, this achievement is seemingly impossible, Bitcoin, a form of digitalized monetary value, accomplishes just that. Until recently, money has always been perceived as a physical note or coin that can be used to make transactions. However, Bitcoin is basically an encrypted digital block that can be stored in an online wallet and securely stored, sent, and received via a special network on the Internet (Friedman). Programmed in 2009 by an anonymous group known as “Satoshi Nakomoto,” (Timpane), Bitcoin appeared on online exchanges as the world’s first decentralized virtual currency. It has been bought and sold much like a stock as investors seek to determine the currency’s true value. This crypto currency also exhibits revolutionary characteristics unknown to the physical monetary exchange. Although it has been criticized by some financial analysts as being an investment bubble, Bitcoin has succeeded in gaining worldwide attention.
This intricate concept of a virtual currency has both positive and negative qualities that could result in whether or not it is deemed a true unit of monetary value. With an increase in popularity surrounding the idea, the price has fluctuated greatly, even rivaling that of gold. Despite the criticism of some monetary analysts, Bitcoin proves to have the potential to be a viable and revolutionized currency because it is decentralized, internationally traded without fees, and gaining popularity in the financial world.
One major distinguishable factor between Bitcoin and other forms of currency, such as the American dollar, is the aspect of a bank or “middle man” that...

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...nomist. The Economist Newspaper, 13 June 2011. Web. 10 Dec. 2013. .
NerdWallet. "Betting on the Bitcoin Buzz." The NASDAQ OMX Group, 20 Sept. 2013. Web. 11 Dec. 2013. .
Pagliery, Jose. "Ron Paul: Bitcoin Could 'destroy the Dollar'" CNNMoney. Cable News Network, 04 Dec. 2013. Web. 11 Dec. 2013. .
Timpane, John. "Meeting up over the Mysteries of Bitcoin." Philadelphia Media Network (Digital) LLC, 08 Dec. 2013. Web. 17 Dec. 2013. .
Watson, Chris. "Bitcoin from a Professional Trader's View." Telephone interview. 02 Jan. 2014.

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