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Bit Coin: The future of Digital Currency

Updated on January 2, 2014
The Future in Internationl Currency
The Future in Internationl Currency | Source

What Exactly is a Bit Coin?

All Throughout history, the world has functioned off the basis of pressed coins of ancient times to barter products and more recently the invention of the printed currency to make transactions a little easier. This however, in the modern day functions of mass Supply and Demand on an international scale has given rise to countries falling into debt, or at least struggling to meet the demands of their financial goals. The push from a more centralized financial society has fallen to the demands of the international market and their drive to find a decentralized currency that could bypass particular nation's regulations.

In 2008, a particular man by the name of Satoshi Nakamoto came to invent a new digital currency, one that could use a method known as a Peer to Peer System. This is in itself more commonly referred to as a decentralized network of individuals that wouldn't necessarily have to know of each other. This system of cryptography mining would allow for the decentralized network to work together breaking series of Algorithms from the use of high-powered redistributed Graphics Cards, or GPUs, potentially solving a block which in return gave bit coin reward. This was where Satoshi sought to become the first to solve and reap the benefits, which was the first in 2009, calling it the famed "Genesis Block". After his efforts and with great reward, it has begun attracting many Computer Hardware Enthusiasts looking to take a piece of the new found digital gold mine for themselves.

What are a couple BitCoin Pro's and Con's at the present time?

(click column header to sort results)
Btc Pro's  
Btc Con's  
The Block Chain- Each time Btc changes hands, that same network would essentially post the financial data to its online, public ledger; therefore open but yet transparent in anonymity.
Its just now hitting the Mainstream Market, so Most Major Retailers havent accepted the Coin yet as a payment option.
Almost Completely Anonymous- The Brokers and Exchanges hold the only personal information with the Btc Consumer, so like a physical currency, such as the American Dollar, it would be transparent to the Merchant.
Loss of your Private Key- Causes could include hard-drive crashes that wiped a wallet of Btc, or a Btc Broker/Exchange being hacked to disrupt or destroy data.

So its a Digital coin, but what is it's function?

The Bit Coin, or Btc, is just a part, or a subgroup within the entire Crypto Currency Market. Over time, it was found that one could not only use Cryptography, but scrypt, among quite a few others, to base what the specific coin was built and managed upon. There were many coins built up in relation to the advancements in the Digital Currency market, some of which will be placed here as the more popular ones floating around the distant mainstream:

  • LiteCoin
  • DogeCoin
  • FeatherCoin
  • ByteCoin
  • StarCoin
  • NeoCoin
  • InfinateCoin
  • TerraCoin

Even though these various Crypto Currencies have been created, BitCoin is still exponentially harder to mine than others, making it far more valuable. It is still safe to assume that as more and more individuals and societies find out about the necessity these various currencies are in order to better protect their security against third party functions.

Where is BitCoin accepted, and what incentives does it give to everyone inviolved?

The International Community in its Modern Stance has seen Physical and Credit Card Based currencies to be the way in which to purchase and sell goods. China imposed rules in 2013 to keep Btc from exchanging with local currency. and the European Banking Authority warning of unsafe economic conditions between trading with these Crypto-Currencies and individual's financial security. It has however, been rising with some US. Based Companies, one such well known one as; a retailer known for its quality discounted items, and with quick and easy Btc payment options, why not?

As for Other companies around the world, it is now being accepted in small businesses around the US but in New York more prominently. It's being seen taking the same financial route in small European companies as well, all welcoming the fact that there is no Charge-Backs, and the merchant consumer base sees a 1% Processing fee rather than 2% for most traditional Credit Cards. Here is a list of some online companies that have begun to accept Btc as payment:

  • Shopify
  • CoinBase (Produced Software to allow any retailer to accept payments instantly.)
  • Subway
  • Virgin Galactic

These are just a few, but in ten years, imagine the difference this simple digital crypto-currency could have on the international community. Imagine a world where a transparent currency, it's payment as quick as electricity, could exemplify the financial freedom this overly debt deficit planet needs at the present time

© 2014 BakerRambles


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