Bitcoin started in 2009, now exceeds more than $1
billion dollars worth of digital currency. It is not like other typical
currencies there is no government or private company that issues the bitcoins. Bitcoin’s
currency is “run by a computer code that distributes new bitcoins at a set rate
to people who devote web servers to keep the code running. Then the bitcoins
are bought and exchange for monetary currency. The recent world events have
shown people the weak confidence in government-issued currencies. Currently,
bitcoin sells for more than $100 U.S. dollars making them high in demand right
now. Also, the bitcoin currency surpasses the value of the entire currency
stock of countries like Liberia and 19 other countries. In Cyprus, their
government is taking a small percentage of all citizens’ bank account to aid
government’s finance. The citizens are withdrawing their money out of the banks
and exchanging them into bitcoins. A little while ago, the Financial Crimes
Enforcement Network agency created the first official guidelines for private
digital currencies. Controversy rises because currency can be exchanged
anonymously online like “the Silk Road” a website where users buy illegal drugs
and other prohibited items with bitcoins. Bitcoin currencies will comply with
same regulations as traditional currency to exchange for real money. However, using
bitcoins to purchase goods or services are not under the same rules. The use of
bitcoins for legal transactions has a lower risk of identity theft.
Bitcoin brings a new age of digital currency. When
people secure bitcoins they hold an actual thing of value. It helps people
protect their money when the country’s currency stock starts to fall in value.
Also if the government tries to take their money from the bank accounts the
citizens can take out the money from banks and exchange them into bitcoins.
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