BY: Dexter East
Bitcoins are a peer-to-peer digital currency that functions
without the intermediation of a central authority. The concept was introduced
in 2008 by a mysterious developer who has referred to himself as "Satoshi
Nakamoto". Not much is known about the developer except that he created
the currency so that people could exchange using a currency that requires no interaction
with an intermediary. The currency does not possess any processing fees
allowing individuals to exchange them without the use of a bank.
Since its inception, Bitcoins have had various uses.
Individual developers have created marketplaces where customers can use
Bitcoins to purchase things much like Amazon. However, recently there have been
reports in the news about its illegal uses. Use of the new digital currency by
cybercriminals has been to both execute illegal transactions and launder
profits by enabling new and previously unseen levels of criminal activity. They
have been used to purchase drugs, weapons, and even used purchase a hit man for
400 Bitcoins. Moving forward, it will be interesting to see how Bitcoins
reestablishes a good reputation after its many negative uses have been
uncovered.
Bitcoins are
stored by associating them with addresses called "wallets". These wallets
can be stored on web services, on local hardware like PCs and mobile devices,
or on paper print-outs. Nevertheless, thefts of Bitcoins from web services and
online wallets have been covered in the media, prompting assertions that the
safest way to store Bitcoins is in secure paper wallets. However, will all of
these negative reports in its infancy stages I have serious doubts about the sustainability
of this currency for the following reasons:
1.
No
support by any central government
2.
Everything
is virtual (technology does fail at times)
3.
Far
too many illegal uses
Check out the articles and videos below
and let me know what you think.
Bitcoins is a creative and innovative idea. I like the idea of a centralized currency agreed upon around the world. You can even exchange the online money for dollars or euros. Bitcoins are essentially taking out the middle man. When everybody has access to a global market, there's no way it cant flourish. I would definitely have to give it a try!
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