Can Bitcoin Be Considered Reliable?

Categories: BitcoinIdentity Theft

Worldwide, people may be wondering and asking what exactly a “Bitcoin” is and how is it supposed to be used. Bitcoins first came around in 2009 and were developed by a man who goes by the name Satoshi Nakamoto, who is still yet to be unknown. When they first came about, there were not too many people that cared for these coins. Today, bitcoins are very popular right now and are considered “very good investments”.  Since the coins are digital, they cannot be counterfeited, and they reduce any possibility of identity theft.

These coins are the againstusefulagainst useful in the protection against fraud. Even though they are not equivalent to actual U.S. dollars, the majority of people use them just as if that’s what they are. In a (SteemKR beta) article, it is stated that there are just about 16.5 million bitcoins that already is in existence, which is about 80% of all bitcoins that may ever be available. Bitcoins are sought out to pay for a variety of goods and services, but can only be used to purchase anything that accepts it.

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You can also obtain these coins by trading other money and goods as well. For Example, video games, traveling, and even food like subway and PizzaForCoins which is a service that allows you to order pizza with these coins. These coins are unregulated, and transactions are completely free and private. Based on the articles I have read, Bitcoins aren’t cheap, and they are sometimes hard to get. People spend a lot of money on buying these coins even though they are worth so much and can be used for several of reasons.

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The main concern is that it can be used for illegal activities such as the purchase of drugs, weapons, and other illegal goods. The concern also exists with all other forms of regulated currency, such as cash and wire transfers. Anonymity is one of the greatest Bitcoin perks, however, nothing is as untraceable as cash. It is the solution to the leading economic and security issues that have left everyone vulnerable, such as after the Target security breach in which hackers stole unencrypted credit card and debit card data for 40 million customers as well as their pins over two weeks before it was detected. In addition, these hackers were also able to obtain addresses, the names, email addresses, and phone numbers of 70 million customers (Andreesen 6).

If Bitcoin were to be used as the standard form of payment, the transaction data doesn’t identify the purchaser’s identity and all information is encrypted. It is the most secure payment method and is a more secure future. It is an innovative solution to several global economic issues, including fraud and identity theft. This cutting-edge, technological advancement of Bitcoin has had a profound impact on the economy. As the value of bitcoins increasesfees, charges, the cost of the goods, and processing fees will decrease. The cryptographic algorithms provide an innovative method to protect users’ personal and account data secure. Due to no fees or very low fees, it has created an opportunity to stimulate global economic growth while providing retailers with higher profit margins and consumers with decreased fees when sending wire transfers, money orders, and check processing charges fees. Bitcoin’s peer-to-peer payment system is mutually beneficial to both the retailer and consumer.

Bitcoin is best described as an Internet-wide distributed ledger. To buy into the ledger, one must purchase one of the fixed numbers of slots. This can be attained by cash procurement or by selling merchandise and service. Trading these bitcoins to another individual that wants to buy into the ledger, is how one would sell out of the ledger. Globally speaking, anyone can buy into or sell out of the ledger at any time they wish, without approval, and either no fees or a nominal fee. Purchasing bitcoins is similar to buying a seat on a stock exchange but is broadly relevant to actual transactions. This makes providing payment to someone anywhere in the world a simple process by transferring ownership of the relating slot in the Bitcoin ledger. To be part of this innovative payment system, one must “put value in, transfer it, the recipient gets value out, no authorization required, and in many cases, no fees” (Andreesen 3).

Each day, there are “hundreds of millions of low-income people go to work in hard jobs in foreign countries to make money to send back to their families in their home countries – over $400 billion in total annually, according to the World Bank” (Andreessen 8). These proprietary systems like wire transfers, money orders, and check to process charge fees that average about 9% and peak at 25% of the total amount being sent (Andreesen 8). Converting to Bitcoin would enhance the quality of life of migrant workers and their families significantly.

Drastically minimizing the remittance cost would affect the poverty-stricken, many migrant workers, and the under-banked in the poorest of countries. This innovative technology has the potential to promptly impact this unfair system and broken by lowering fees substantially and adding to the economies of these third-world, Examples countries, which will increase health care, create jobs, and improve sanitation worldwide.

References

  1. Andreesen, Marc. “Why Bitcoin Matters.” NYTimes.com (2014): n.pag. Web. 26 Mar. 2014.
Updated: Aug 22, 2022
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Can Bitcoin Be Considered Reliable?. (2022, Aug 22). Retrieved from https://studymoose.com/can-bitcoin-be-considered-reliable-essay

Can Bitcoin Be Considered Reliable? essay
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