Watch the following video regarding bitcoin. What is bitcoin? Why does it work as money? Why does it have value? What could be the positive about the lack of of government and back involvement? What are its shortcomings? Do you think it will work? Why or why not?
12 Comments
Jennifer Martin
5/2/2013 04:23:30 am
The video states that a bitcoin is virtual money, free from regulation, and only exists online. Bitcoin isn't controlled by banks or the government, but it is controlled by the user himself. The bitcoin money is technically untraceable, so it would be easy for criminals to trade and buy guns from companies. Only a few companies take bitcoin money. Items are purchased through smartphones which scan a code and transfer money to and from the bitcoin website. The positive side to the government and banks not being involved would be making loans, trades, deposites, and other transactions alot simpler. In my opinion, bitcoin won't work in the future. It is using fake currency to buy real things. No regulations are held in the virtual world of bitcoin and there would be no benefit for the government, like taxes.
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Knute Meyer
5/2/2013 07:50:39 am
A bitcoin is a new emerging currency that exist in the online world. It works as money because it is nearly untraceable and is almost alien. It can not be counterfeited like paper money This gives people a sense of security which gives it value. A Bitcoin uses peer-to-peer technology to operate with no central authority, this means managing transactions and issuing money are carried out collectively by the network. The positives of not having government involvement is that of no taxes or involvement in transactions. However there are some problems that arise with bitcoins such as money laundering or paying for illegal drugs. I think most people will be reluctant to adopt Bitcoin because the software required to use it remains so complex, unknown, and the value of an individual Bitcoin is so volatile.
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Alex Perez
5/2/2013 07:53:46 am
A bitcoin is a fairly recent form of internet currency that was introduced in 2009. They are basically digital coins, usable in transactions online just as dollars are. Bitcoins are nearly impossible to hack - people can't make counterfeit bitcoins like they do with paper currency, so that injustice is unheard of. These bitcoins have value because we believe they do, although not many know about them or use them today. They have value for the same reason the currency we use now does - just because we say they do. The positives aspects of bitcoins are that because of the lack of government involvement, taxes on bitcoins are essentially non-existent. One real downside to bitcoins is that they aren't as widely recognized as dollars are, so not all companies accept them. I don't think that bitcoins will work because they are unknown to most people, they are more complex than regular currency, and having two types of money isn't efficient and not beneficial for the economy.
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Catalina Jacobo
5/2/2013 10:12:51 am
The video is about Bitcoin and it is a new way of money. It is virtual money used online. The value of this new way of money is that you are the only one with control of your money. A good thing about it is that it is a secure way to have a hold of your money and since no one else can get a hold of it online more people will be interested to use Bitcoin. Even the government and banks have nothing to do with your money, but the down side is that people can do illegal things by using Bitcoin. From the infromation the video showed about bitcoin I think it could work because It's a more private way to use your money and I think it's more safe because your the only one in control of your money, and I think people would be interested to give it a try because of how safe it is to use.
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Alex Radinger
5/2/2013 10:15:43 am
Bitcoin is virtual money that only exits online and is free from all regulation. Bitcoin is gaining much popularity due to its sophistication. The fact that most people do not see Bitcoin as a risk, because it is so secure, is a huge reason why it works as money. The people do not find it risky and it has real value to them. A positive of Bitcoin is that the government does not interfere and you can spend your money where and when you want. However, this can also be a negative because criminals can use Bitcoin to buy anything they want online, even illegal substances and firearms, and all of their steps will be virtually untraceable. Another advantage of Bitcoin is that it is simple to use. In stores you simply scan a barcode and your Bitcoins are automatically transferred to the store.
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Estefani Ramirez
5/2/2013 01:00:59 pm
The video from BBC news titled “Unraveling the mysteries of Bitcoin” states that bitcoin is new money known as virtual money. This works as money because it is easy to handle virtually and once it is spent they can no longer use the same money again and can’t be counterfeited like dollars. This money has value because you are the only one that controls it. The government can’t have a say in what or how to control your money and everything remains anonymous. A positive thing about the government not controlling your money is that trades or loans and deposit can be made at no cost and the government can’t interfere in it. I don’t think that virtual money will work online because of the illegal things that can be done by the criminals they have an easy access on buying or trading things. I don’t think that bitcoin will allow the economy to regulate successfully.
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Steffanie Lopez
5/2/2013 02:42:26 pm
Bitcoin is virtual money used online that has no regulation by a bank or a central government. It works as money because people believe that it is a safe and secure way to use their money. The software used for bitcoin in so complex that hackers aren't able to get in, making people confide in the bitcoin. It is fairly new, so not everyone uses bitcoin yet, but it can be traded through a smartphone that scans a barcode to transfer the money. The positive about the lack of government and bank involvement is that, when paying with bitcoin, there is no need for tax, since that tax money goes to the government. It also allows people to regulate their money on their own, without the interference of the government. But without government involvement, some people might not accept the bitcoin and believe it to be real money. Lack of government involvement means lack of regulations, which could make easier for criminal purchases, as there would be no way for the government to get involved in those purchases, such as illegal drugs or weapons. Bitcoin is fairly new, and it is hard to tell whether it will end up working as real money or not. However, I believe, if it does start to become more widespread, it is going to take a very long time. Not everyone is going to believe in the bitcoin, and not everyone is going to want to trust it. I don't believe it will work because of the lack of government involvement. It just seems too unknown and there are too many secrets about it and the system to get people to fully trust the bitcoin and its use as a virtual currency.
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Ariadna Ramirez
5/2/2013 03:50:38 pm
The video from BBC news “Unraveling the mysteries of Bitcoin” Is a new way of money; it is virtual money used online. This works as money because it is not controlled by banks nor the government; however, is controlled by the user. This money has value because you are the only one controling your money. A positive thing about it is that it is a secure way to have a hold of your money. Loans, trades and deposits can be made with no cost, without the government interfering. In my opinion, bitcoin won't work in the future because of the illegal things that can be done by criminals. It is not regulated like other currencies, it's like using a fake currency. There is no benefit for the economy.
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Alexander Pierce
5/2/2013 05:23:08 pm
Bitcoin is a form of currency that is dissimilar to most other forms of monetary representation. There are many things that make Bitcoin so different, such as being based online, not being regulated by any government or bank, and being completely virtual. The reason Bitcoin is able to work as money is in the programming. The programming allows the user to make any transaction with a computer or smart phone, without having to utilize any intermediate source, for example, a bank. It is unknown who developed Bitcoin, but the program’s sophistication and reliability is causing people to allocate their funds in this currency form. Bitcoin has value as a currency because people believe that it is safe and more convenient than other types of money. Also, Bitcoin gives the user more control without having to worry about their money being stolen or traced. There are many beneficial and detrimental aspects concerning Government and bank involvement. On the favorable side, the middleman is taken out, which makes it less likely for money to be lost. Banks invest peoples deposits and that is how their profit is made, but on Bitcoin it is just money being transferred from source to source. On a side note, contrary to what Knute and Alex said, Bitcoin currency is taxed just as any other form of foreign currency is taxed. It must be converted into American dollars and then reported to the IRS unless people receiving Bitcoin want to be arrested for tax fraud… Back to the main topic, some disadvantages of Bitcoin are that it is used for trading drugs and gambling. This makes the currency less valid, and less likely for a person to adopt Bitcoin as their form of legal tender. As we come into a new age of technology and instant gratification it is extremely feasible that a currency like Bitcoin could be widely employed as bullion. Instead of having to go through the government or a bank, people could manage their affairs just as easy as sending an email, and avoid the annoyances known as banks. It may not happen in the next five to ten years, but technology similar to this could become the predominant form currency trading.
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Max Parriott
5/4/2013 01:50:52 pm
Bitcoin is an internet based form of money that allows you to manage your money the way you want to. Giving freedom to do what ever you want to do with your money without regulation or taxes by a government. The way Bitcoin works as money is the fact that it appears as a form of currency to a normal human being who believes in their countries form of money, but is completely electronic. People believe that money created by their own countries governments has value because people accept it in exchange for what you want, same for Bitcoin. This form of electronic money that you will never see physically in your hand can flourish because it has no government involvement, no taxes, regulations or possibly inflation. It has the potential to be a very very successful form of currency, but realistically Bitcoin might cause larger problems, allowing possible criminals more freedom to acquire what they desire without government intervention and regulation. Bitcoin is a very great idea with potentially great problems.
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Sergio Nava (goof)
5/7/2013 04:42:44 am
Bitcoin is virtual money which is not controlled by a central government or by any banks. The people who support this form of money argue it has many advantages, among these include the higher level of security it has over regular money because no one will ever loose it and it is very difficult to hack and steal bitcoins. As mentioned above other advantages it has, is that no government or banks control it. The reason it works as money is because people believe it its money. If one is trying to buy any product with bitcoins and the seller accepts it, then it automatically becomes money. Bitcoins have value due to the popularity it is gaining and the fact that there's many stores out there who take it in exchange of their products. Having no government involved in this sort of trading can be both a positive and a negative, the positive to this is that there is no middle man involved therefore there arentany extra hidden fees included when proccesing a purchase. The negatve side is that criminals can use Bitcoin to buy anything they want online such as weapons or even drugs without the goverment finding out. Although this form of money has gained some popularity i find it hard to believe it will ever replace actual paper money. Since there isint any sort of goverment behind this system i think people would feel unsecure trusting bitcoins and would much rather go the old fashioned way.
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Dana Cronin
5/7/2013 10:35:27 am
Bitcoin is a new type of currency that has its basis in the virtual world only. It completely avoids the middleman entities, such as banks or any other regulatory government institution. It works as money by incorporating technology to make monetary transactions at various tech-savvy businesses. It has value because the user has essentially traded in their own money for these new "bitcoins," which are supposed representations of money that completely avoid the middleman. Potential benefits to this system is that it appears to be very safe so far, that is, professional hackers have been unable to hack into the system. It is basically like having your own personal piggy bank online. The money essentially stays in your own hands. There is no risk of bank robbery, stolen identities, or anyone tracing your money back to your bank account. However, this system does not come without its shortcomings. First of all, bankcoins are not liquid, and it seems like it may be more difficult to convert them to cash than, say, a bank account. Also, as hackers begin to learn more about this system, it could become unsafe to store all of your money in your virtual "wallet." If the system were to crash, a bitcoin user could potentially lose everything. Therefore, I don't believe that this system could be successful. The downfalls seem to outweigh the benefits and the risks are too great. To completely abandon the government banking system would be a very difficult task that I don't believe could be accomplished in the near future.
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