What exactly is
Bit-Coin? It is a universal currency that is on the rise and growing rapidly.
Majority of the people around the world either doubt the value/trust of
bit-coin or just do not know about currency; but for those that have invested
in Bit-Coin it has been nothing but a gold mine. NPR’s podcast offered great insight
on this new currency.
The
general concept behind Bit-Coin, is that it provides a universal digital/online
currency naturally eliminating banks. This meaning that there is no longer
governing bodies besides its own users behind this currency influencing the
value bases of its pear-to-pear system. In addition, the goal for Bit-Coin is
to take the bank out of the equation eliminating fees as well as tracking
making this an untraceable currency. This may scare many, because most think
that this is illegal but indeed it is not. Bit-Coin can be used to purchase
your every day items, but a large factor is the black market as you can imagine
since this currency is as I noted before UNTRACABLE. Furthermore, Bit-Coin
retains some value because of the economic concept of scarcity; there is only a
limited amount of Bit-Coins available for purchase and the more they are
purchased the less there are giving them more value because they are gaining demand
in the universal market.
Why
choose Bit-Coin? Well if you are part of the mob, or drug trafficking I would
recommend Bit-Coin because the fact that it is untraceable (which most actually
do). But speaking in real terms, Bit-Coin is a currency that cannot be
counterfeited in addition to the fact that it cannot be compared to any object
of value, take for example gold. It is given its value based of the economy of
the world, which has given great value to the Bit-Coin as it has grown swiftly
in value. A main contributor was the Silk Road, and online black market. Even
after the collapse of the Silk Road many thought there would be a crash in the
value of Bit-coin but rather it grew in even more value. Why? Economically
speaking there is a complement product that took its place as another website
similar to the Silk Road came about, but legally speaking people now gained
trust in the currency and realized the beneficial aspect of the universal
exchange.
Where
is Bit-Coin heading? At this point in time, it is on the rise and will continue
to rise until it is capped out, but where will it go from there? The only fear
with Bit-Coin is its illegal use, and in my opinion the only factor that will
potentially shut down Bit-Coin. In 10 years from now I can see a mass increase
of Bit-Coin users because there is the fact that is a universal currency but
even further it is already expanding. There are Bit-Coin ATM’s popping up in
Europe, there are colleges in America accepting them as a payment for tuition,
and your average deli shop is even accepting them. Where can this currency go
wrong? I am a Bit-Coin user myself and I am very satisfied with the currency as
a whole and I would hate to see such a progressive project to form a universal currency
collapse.
