There is a rather new form of currency in the world today: Bitcoin. It is still just a blip on the economic radar, but already it is causing a stir and people are jumping on the Bitcoin bandwagon while it is still in its infancy. The truth of the matter is that currencies around the world fluctuate in its market value all the time. We know from various sources that Centralized banks lend money to governments at an interest rate that essentially creates perpetual, mounting debts which can never fully be repaid. Taxes continue to increase, while the value of the dollar continues to decrease. The money game is a high stakes gamble and one that puts people at the mercy of the Federal Reserve and big banks globally. Enter Bitcoin.
The wonderful idea surrounding Bitcoin is it enables instant payment to anyone anywhere in the world. It is digital currency or crypto-currency with no central authority and can be absolutely anonymous. Drug dealers around the world are just giddy about this concept. But perhaps there are far too many skeptics out there at the moment for this to be a threat to how the traditional monetary system works. Certainly it is worth pondering. After all, if so much of what we do is based on our debts (nationally and personally), why not explore the possibilities of using a currency that does not falter at the whims of banks that manipulate world markets? It has long been argued by economists that governments everywhere are forever in debt to the banks that lend them money. We, in turn, are forever in debt to various creditors and the value of our dollars fluctuate, restricting our wealth. So, is there a future for Bitcoin? School of Business Professor at Columbia University, Brett Gordon, thinks the world may look very different with Bitcoin curreny. “I think a significant contribution of the bitcoin market is that it serves as a proof-of-concept for a decentralized crypto-currency. Two benefits are that bitcoins are inherently deflationary and transactions are anonymous. Given the recent slew of fiscal crises and increasing concerns about online privacy, these are two strong points in bitcoin’s favor—or whatever future crypto-currency arises” (Tech Crunch, 2013). But Bitcoin is making some people nervous, as evidence by recent governments around the world cracking down on the trading, buying and selling of Bitcoin currency. And as a result, the legalities are beginning to sprout up (Sky News, 12/27/13).
It may be a little premature to say Bitcoin will replace the dollar or any other tangible currency. But looking around, people are using physical money less and less these days. More purchases are made online, debit and credit cards are more common than using paper money it seems. Even Welfare and Food Stamp recipients have “debit” cards to make purchases. The digital money age is already here. The question right now is: how long will Bitcoin be around? People have said such things about a lot of things over the years that literally changed the world. This may be just the beginning of crypto-currencies changing the world.
(edited 12/27/13, Originally posted on jvmyk.blog.com 4/22/13)