Viable Crypto Currency or Investment Bubble Essay

It’s based on supply and demand. Because of this, there is the chance of hyperinflation making fiat money worthless. There is a story about the little boy who came home with a puppy and told his mother that it cost him $40,000. It was a very valuable puppy.

Bitcoin, an electronic currency, is currently one of the most valuable forms of money that can be obtained, yet maintaining the entire bitcoin network requires an absurd amount of electricity and resources. This electricity is all used for the sole purpose of creating and exchanging money that doesn’t even exist for various real world items with value. Bitcoin demonstrates what occurs when you take the concept of money and take it to the extreme with large groups of people arguing over something that is not only has an entirely self defined value, but is also a large drain on the Earth’s resources. These arguments demonstrate another flaw with the concept of money bringing people happiness which is that if everyone is fighting over money, is it really bringing any of them

Cryptocurrency is a digital asset that serves as a medium of exchange with no central authority and was created to prevent the issue of double spending. This problem is solved with the use of blockchains where miners confirm transactions on a public ledger. As of today, there are over 1,000 different types of cryptocurrencies, and at least 600 of these have listed market caps of over $100,000. Bitcoin, Ethereum and Litecoin are top cryptocurrencies trading today with their combined market cap topping $331B. Bitcoin, created in 2009, is the biggest cryptocurrency and has recently reached a net value of over $270 billion, with much of its growth being in the last few months. This has led to much

The dramatic development of blockchain technologies seems to be a double-edged sword. Although cryptocurrency leads to innovative payments and transfers, it may be a tool for criminal usages. In terms of benefits, bitcoins have ability to solve double-spending problems and Ethereum’s smart contract is used for sharing economy. On the other hand, because there is no legal which is responsible for Bitcoin trading activities, Bitcoin is considered as one of the greatest risk to national security through illegal operations involving to financing of terrorism and extremism (Vovchenko et al, 2017). In 2013, for example, the U.S government closed down the largest website, named Silk Road, involved to illegal goods trading, in which there is 1.5% of Bitcoin was used for trading illicit drugs and counterfeit

3. Why did influential individuals like Fisher, Keynes and Rockefeller believe that the downturn would only be temporary?

Currency acts as a store of value, a medium of exchange and a unit of account. Physical currencies are promissory notes payable to the bearer on demand. Digital currencies are internet-based form of currency. They represent both developments in payment systems and a new type of currency. Digital currencies, in hypothesis, serve as money, at present day they act as money to a small amount of individuals and institutions. It has been often questioned as whether the decentralised digital currency, such as Bitcoin and Litecoin, will emerge as the preferred method of payment for Internet Services or will remain a superficial payment method compared to well established existing payment systems.

To fully comprehend Bitcoin, one must understand the process of becoming a Bitcoin user and the block chain. The first step to becoming a Bitcoin user requires a decision be made on what type of digital wallet service to use. One form of this is an online wallet service. Charles Babbage, a mathematician, engineer and writer for the The Economist details this downside in his blog post titled the “Bits and Bob” “This means trusting the provider of that service not to cheat, or go out of business, taking clients' savings with it” (par 3). The other method is to download a personal digital wallet on the user’s computer. If the user does not back up the drive in which the digital wallet is stored, there is a chance that the Bitcoins could be lost. The next step requires the user to join the Bitcoin network. This is where Bitcoin starts to differ from normal currency. Bitcoin is a peer-to-peer network. Krohn-Grimberghe and Christoph Sorge from the University of Paderborn, Germany states that “Bitcoin was designed as a completely decentralized ‘electronic cash’ system” (2). Edwin Jacobs a writer for the Journal of Internet Banking and Commerce also writes about this in his article “Bitcoin: A Bit Too Far?” The main point here is that there is no central bank controlling the Bitcoin currency (Jacobs 2). Instead, each user plays an equal role in the

The hidden power behind cryptocurrency is blockchain technology, which is as tough to recognize as it is to discuss. There are definitely in-depth descriptions of exactly how blockchains work offered, yet generally, each is built on an openly

The use of Cryptocurrency has become more prevalent across the globe. Regulation seems like the next logical step in evolution and legitimacy, but this will ultimately lead to large financial institutions and government establishing the standards and determining the value. At that stage cryptocurrency may still be categorized as a decentralized form of currency, but the behavior will be that of a centralized system overseen by the same institutions who govern our monetary systems today. Many people think of cryptocurrency as a new and innovative payment system, yet it’s much like forms of money that the world has seen in the past, before governments and central banks exerted their control. In many ways, cryptocurrency completes the cycle started when money began to take hold in the Renaissance, when value and control was not determined by any government but rather by the issuers of notes and the customers who used those notes. One of the most popular cryptocurrencies available is Bitcoin. Bitcoin is regulated differently in the People’s Republic of China (PRC), Canada, and the United States, and no country has currently backed Bitcoin. Launched in 2009, and founded by Satoshi

The most commonly known crypto-currency is Bitcoin. In the article, “Introduction to Bitcoin: At Issue” from Opposing View Points in Context it reports that, Bitcoin was invented in 2009 and remains to be the popular (“Introduction to Bitcoin”). Amelia Schwanke who works for BANK of New York Mellon Corp. explains how Bitcoin was created shortly after Lehman Brothers Holding Inc. went bankrupt by someone who goes by the alias, Satoshi Nakamoto in response to economic occurrences (Schwanke). It is interesting to think about how the Great Recession was a ripple in changing what the future currency is going to be. Schwanke says, “Those who created Bitcoin were anti-establishment and

Bitcoin (BTC), a cryptocurrency, is a type of digital currency which was introduced in 2009 by pseudonymous developer "Satoshi Nakamoto". Since then 12 million bitcoins have come into existence with a current market cap of around 8 billion USD [1]. The algorithm is designed as to allow only 21 million BTC to come into existence ever. Bitcoin uses peer-to-peer technology to operate with no central authority or banks; managing transactions and the issuing of bitcoins is carried out collectively by the network [2]. Bitcoin is not the first attempt. But none have managed before to take off so dramatically and with such wide adoption to achieve escape velocity. The questions which are important now are how the bitcoin managed this success in

Nowadays, the Internet has implemented great impacts on people’s life, and it also has changed the business world significantly. In order for companies to cope up with the changing customer demands, they must adopt new technologies not only to support their business functions but also to reduce paper works, reduce costs, and provide better services. Bitcoin is a currency of the Internet, distributed, worldwide, decentralized digital money that be developed as a new payment method. In Australia, the regulator has defined Bitcoin as property instead of currency for accounting purposes (King, 2015 February). Although Bitcoins are not materially existed, it can be exchanged for goods and services at places that accept it, the same way you would give someone a dollar for a cookie.

Litecoin – is the second largest cryptocurrency in terms of capitalization in the market today. It reached a market cap of $1 billion by the end of the year, 2013. The litecoin was primarily created as an improvement to the Bitcoin, the market leader. Among the added features are - mining capabilities with the use of an ordinary desktop computer, faster processing time (2.5 minutes versus 10 minutes for Bitcoin), and a maximum limit (84 million versus 21 million) which is four times more than Bitcoin, its leading rival.

The world is in a constant state of change, nothing stays the same forever, for something to last in the world it must be able to adapt. This affects most things, even currency is no exception there have been many ways to pay for things over the years whether it was a silver coin or a dollar bill the way people pay for things change. Now there is a new way to pay, but you can’t even touch this kind of currency, Bitcoin, and other virtual currencies. Will this new form of currency become used by everyone or will it die out like other virtual currencies, the future is unknown and time will only tell us what will happen.

It’s important to note that since Bitcoins are produced without the involvement of governments or banks, they avoid taxes. Lastly, the cap of 21 million bitcoins has driven the value of a single coin up as shown by the below graph depicting expected growth of coins over time.