Digital Currencies and their dangers
Bitcoin, a digital currency that is valuable without banks or borders. It's taken the world by storm. In this article, we'll explore what Bitcoin is and what makes it valuable to those who use it. We'll also explore the problems with digital currencies as a whole and how they don't currently have e-commerce applications. Digital currencies can be used to transfer funds between countries that have collapsed financial systems, but they are still plagued by many issues.
What is Bitcoin?
Bitcoin is a digital currency created in 2009 by an anonymous programmer who goes by the alias "Satoshi Nakamoto." It works without any centralized authority or banks. You can simply acquire it by exchanging real cash for it at various exchanges, or you can "mine" it using your computer's processing power to solve algorithmic puzzles. Its value has fluctuated wildly since its inception, but as of this writing, one bitcoin is worth about $100 U.S. dollars on the Internet marketplaces where bitcoins are bought and sold.
"Bitcoin is a technological breakthrough that will change the world" – President Obama
Who uses bitcoin?
According to a study released in 2014 by Cambridge University's Crime and Justice Research Group, more than 400,000 people currently use bitcoins to pay for goods and services online. There is a small portion of users who use Bitcoins as a way to invest in things like mining equipment or cryptocurrency exchanges. The entire Bitcoin economy is estimated to be about $7 billion U.S. dollars, which means the currency has been extremely volatile as of this writing. There are also some people who view it as "digital fiat currency," which some put into perspective with the U.S. dollar.
How do bitcoins work?
Bitcoin is a digital currency that exists only in cyberspace. You can't hold a bitcoin in your hand, but you can use it to buy things online if you know where to look. There are many legitimate establishments that accept Bitcoin, including WordPress, Reddit and Expedia. But there are also plenty of shady sites too, like the infamous Silk Road marketplace for illicit drugs and other less-than-legal goods and services. It's also popular because it doesn't cost anything to send or receive bitcoins instantly anywhere in the world at any time of day or night. The transaction fees are voluntary based on the user's preference and the user specified payment amount.nough regulation to protect consumers, something that could change in the near future with the passage of The Cryptocurrency Regulatory Act in New York State.