- This topic has 1 reply, 2 voices, and was last updated Sep 25, 2017, 2:54 pm by
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Cryptocurrencies are considered a digital subset of currencies and, as such, have no physical representation. There are thousands of cryptocurrencies worldwide and among them, Bitcoin is the most famous name. Bitcoin was created during the financial crisis and its purpose was to address economic problems related to centralized currency. Bitcoin can be bought and sold online and can be used to buy products and services, and those who do this are guaranteed privacy and anonymity. When discussing the bitcoin’ concept it is important to understand its purpose, how it works and that even though it is a new technology, it can be the currency of the future….
Bitcoin was created during the financial crisis in 2009. In September 2008, Lehman Brothers, one of the biggest banks in the United States, filed for the largest bankruptcy in history. Consequently, a global financial crisis began. A few months later, Bitcoin was born. It was founded and developed by an unknown person using the alias Satoshi Nakamoto. He founded this new currency because he saw a need for a new kind of electronic payment system. His idea was to produce a global currency independent from any central authority, transferable electronically, and with very low transaction fees, different from our standard currencies such as the dollar and the euro that are controlled by government and banks. As an example of how bitcoin works, if someone in Japan buys something from an American seller and pays with bitcoin, there is no conversion rate, no bank delay, and no bank fee.
Even though bitcoin is easy to buy, sell, and be used online, people still afraid do it so. People can buy it using “digital wallets,” which exist either in the cloud or on a user’s computer. The wallet works as a kind of virtual bank that allows users to send or receive bitcoin and pay for goods and services. As an example, people can buy games, apps, food, jewelry, etc. In addition, the names of buyers and sellers are never revealed – only their wallet IDs. Due to this fact, bitcoins are also protected against identity theft.
Bitcoin is considered a new technology, so it is important to understand that new technologies can take months, years, or even decades to reach critical mass. Bitcoin was created to make digital payments easier. Also, since bitcoins are international currency, people can use them in any country without converting between currencies. And much like the internet, no one wants to miss out on this new kind of currency and for now, bitcoin is considered the biggest thing yet.
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Ana,
Sorry I’m seeing this a bit late! BITCOINS! I must understand these critters, so thank you for writing about it. I see your angle here: When discussing the bitcoin’ concept it is important to understand its purpose, how it works and that even though it is a new technology, it can be the currency of the future….
If you feel bitcoins are the way of the future– perhaps in your intro you can stay with explaining BRIEFLY its origin and its purpose, but then spend the majority of your paper explaining WHY and HOW it is inevitably going to be the way of the future. I like the idea of also talking to readers who might be “afraid” of using it and talking them through all of the reasons why it’s not something to fear.
I wonder if you should consider using analogies when explaining why bitcoins will be a way we collect and give capital?
Thanks for sharing!
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