What is Bitcoin? Is it the Cash of the Future? Essay

What is Bitcoin? Is it the Cash of the Future? Essay

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Bitcoin is a digital currency, similar to cash due to the fact it is instant, however, is not managed or controlled by a central government or organization. Instead, the network is run on thousands of independent user’s computers. None of these computers have more control over the network than any other computer. The network that Bitcoin was founded upon is based on 40 years of research in cryptography and over 20 years of research in cryptocurrencies; by thousands of researches around the world.

Bitcoin answered what was thought to be an unsolvable math problem known as the Byzantine Generals Problem.

It is important to note, that while Bitcoin can be very difficult to understand, most people don't fully understand most of today’s technologies that influence their everyday lives such as telephones, cell phones, the internet, and computers.


Why is a Decentralized Payment System a Big Deal?

"Regulation of money supply needs to be depoliticized... especially as it applies to virtual currencies" - Al Gore

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.

Governments:

In order to bailout t...


... middle of paper ...


...ist, please click here

link: https://spendbitcoins.com/places/

Additionally, the innovative team at SnapCard has developed a great system that allows you to use Bitcoin to order from any website in the world that accepts Visa or Master card.

https://www.joinsnapcard.com

(Interview Bitpay founder)

What Industries does it Stand to Disrupt?

Right now, companies such as Western Union, Moneygram, Paypal, and the more commonly used Visa and Master Card are making billions and billions of dollars each year in transaction fees.

Here is an example:

To send $1,000 via Western Union from the USA to Canada, will cost $86.00 in fees.

To send $1,000 via Paypal from one account to another, the cost would be $29.30

These numbers do not calculate the amount lost from exchange rates between two currencies.

Price to send Bitcoin:

FREE




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