By Ryan Pierce
The Bitcoin was created in 2009, by an unknown source under the alias of, Satoshi Nakamoto. It is believed that the Bitcoin was originally created in a sloppy manner, which still causes it to fluctuate on extreme levels years later. There are both good and bad things about the Bitcoin, but the risks tend to outweigh the benefits in more than one area.
Bitcoin may seem more complex than necessary on the outside, but it is actually a rather simple and straightforward process. It is ultimately a digital currency that is completely anonymous, that saves a log that keeps track of all transactions that are near impossible to track back to the original source. There are no real names required to make an account. This makes it easier for illegal transactions to be made through Bitcoin.
A big thing that gives Bitcoin its leverage, is that it has a no middleman policy. All transactions go directly from the buyer to the seller, no banks intervene. All payments are anonymous, therefore law enforcement is not a fan of it. If someone wanted to buy drugs, or any other illicit material, they could just as if it were cold, hard cash. It is nearly impossible to track down the original source of any transaction.
When someone uses Bitcoins as a currency to pay, there are next to no fees involved. There are also very few risks to the merchants. Many people today are beginning to accept Bitcoin as a legitimate currency, and have begun to use it on a regular basis.
The currency is a worldwide investment, that can be used in any country and any continent. The convenience of Bitcoin is also a huge advantage. All the trust in Bitcoin is directly related to the fact that there is no trust.
But it is not all good things on the lips of the people, for there are many disadvantages and risks with Bitcoin as well. The currency is not regulated, causing it to fluctuate on a regular basis. For example, something you buy for $10 can be the value of $10,000 later on, and visa versa. The protection software is not fully mature, but it is, on the other hand, being updated by developers normally. There is also no guaranteed profit when using Bitcoin, much like using the Stock Market.
Guest Teacher Valerie Wheelock said that she is familiar with Bitcoin, and has a grasp of exactly what it is. “People want a flat tax, to force the IRS to change their code.” she mentioned, while discussing exactly why someone may want to use Bitcoin in the first place. “It is a disadvantage to the banks, [when we] don’t need the banks anymore.”