Bit coin Essay Example | Topics and Well Written Essays - 500 words

Bit coin - Essay Example As Boardman, Sondomir and Sondak (38) argues, the primary aim of Nakamoto was to create a form of online currency in order to circumvent payment processing technicalities which online traders were facing. Specifically, the entry of the transactions on the ledger or mining processes had become difficult if not impossible to such users. Apart from the mining, digital currency can be a form of exchange of currency, goods, and services. Through Bitcoins, users can make purchases of goods, send, and receive the money via electronic means for a small fee and with the help of wallet application on an Internet-enabled gadget. The virtual currency as a system of payment for commodities purchased online has undergone rapid growth, and businesspersons have an advantage to enjoy the use of the currency owing to its lower than the 3 percent typically charged for loading and or use of credit cards. Nonetheless, many governments from around the world have been hesitant to welcome the use of the currency within their respective jurisdictions, with some warning their citizens against the use of the service due to its lack of consumer safeguards. Bitcoins are vulnerable to theft and chargeback defaults. As Boardman, Sondomir and Sondak (12-29) have indicated, the use of the currency for commercial purposes is still minimal and largely preferred by speculators. This alone has added to the lots of worries and its volatility, hence the fear of the bubble effect. Bitcoin speculators have contributed to the bubble effect theory explaining the unpredictable future of the currency. This is especially true considering that speculators who top the list of Bitcoin users argue that with $200 in one’s virtual account now, the value of the money will increase to $600 or $1,000, since they will find people who are willing to buy it at that higher price. The buying of the currency in hope that the value would increase is a serious flaw in the thinking