Bitcoins have been in the news a lot lately, predominantly because of it’s tremendous fluctuations in worth. When the alternative currency first started out, it was worth roughly 15USD a coin. At it’s recent peak, the prices had it at over 250USD. However, disaster struck when the coin then suddenly dropped an immense amount of value. Within the span of a single day, the coin rose up and down violently until it finally settled at roughly 40% less than its worth at the start of the day. While it’s still significantly higher than when it started, it’s quite discouraging for those who jumped on the Bitcoin boat. The Internet was absolutely inundated with queries from confused and curious onlookers. First, people searched for what Bitcoins are. After the public was fairly well educated, then they started looking to see just was happening to this currency. Is it a bubble on the verge of being popped? Is it threatening to decimate the world’s current economic scheme? Are we looking at the future? The answers are potentially shocking.

How They Work:

Bitcoins themselves are novel in terms of currency, but they’re not as new as many outsiders believe. The coins have been around for three years now with the protocol being explained and written in 2008. Essentially, they are a form of currency that can be sent from person to person online. Imagine how any individual could essentially hand over a dollar to another person for a procured item or service without any fuss. That’s essentially the aim of the Bitcoin. In order to prevent people from merely synthesizing their own, the coins themselves are created by a complex algorithm and given their own unique identification. People can “mine” coins by allowing their CPU’s power to go towards solving larger problems. If their computer is the one that comes up with it, they get a coin. It’s rare for this to happen unless the computer is part of an organized conglomerate within the structure. Most coins are, ergo, purchased online.

Advantages:

The Bitcoin has the advantage of being online processing extremely simple for business. Companies like PayPal often act as middlemen in the exchange of currency across the Internet. However, it can cost money to use these services and definitely slows the process. Bitcoins look to make a global currency network. There’s no need for businesses like PayPal using the Bitcoin transaction model. Furthermore, many experts feel that it will do wonders for entrepreneurs in the developing world. Converting many of the currencies leads to confusion and hassle as their worth is subject to drastic change. The Bitcoin makes it simpler and easier.

Worries:

Is the Bitcoin looking to create a new economic structure? Clearly, but not one that supersedes or demolishes our current foundation. There is a lot of hope that the Bitcoin can work in tandem with the world’s foremost economies. At the very least, it can provide a solid Internet option.

Many people are dissuaded as of late. This is understandable considering the recent plummet in worth. However, their cries of a bubble echo the sentiments of 2010. Back then, the coins dropped down to a paltry $2. Everyone then was crying “busting bubble,” as well. The world is becoming increasingly dependent on the Internet and on metaphysical technology and commerce. If the Bitcoin won’t survive (which it appears to be resilient enough to take this hit), then it’s sure that some rendition of it will reappear again fairly quickly.

Mark Cord

wooblering@gmail.com