Bitcoin evolution

audure
audure
Jul 28, 2017 · 4 min read

Introduction

Bitcoin has been the subject of countless sensationalist headlines in the United States for over two years. A typical headline one might read includes “Bitcoin[’s] Future in Doubt,”1 “Bitcoins: The Second Biggest Ponzi Scheme in History,”2 or, conversely, “Bitcoin Price Skyrockets,”3 all of which have appeared in headlines within the past six months. Sometimes, radically divergent headlines will be published in the same day leaving many Americans in a state of confusion and overall skepticism about Bitcoin. Although a recent poll suggested almost half of Americans now know what Bitcoin is, only 13 percent would choose it to invest in over gold.4 Although Bitcoin has a relatively large group of dedicated followers,5 few Americans recognize the significant potential Bitcoin has to revolutionize money and few recognize the revolution in digital currency Bitcoin has already affected. This work will reinforce that before Bitcoin, there was a paradigm in digital money in which a central authority was often the method used to prevent double spending. It will present problems that resulted from various progressions in cryptography and manifestations of digital currencies as anomalies leading towards a crisis that would precipitate a paradigm shift, viz. Bitcoin. The introduction of Bitcoin will be shown to be interrelated to the 2007–2008 financial crisis, which exhibited the vulnerability of relying on government fiat currency as money and banks in facilitating transactions and acting as a central clearinghouse and holder of one’s money. Although it can’t be directly proven unless Satoshi Nakamoto, the inventor of Bitcoin,6 unveils himself and explains his motivations, this work will suggestthat the correlation between the crypto-anarchist concerns and what problems the housing and financial crisis illuminated are strong enough to suggest Nakamoto’s Bitcoin paper and the implementation of Bitcoin were a response to the crisis. Corollary to this, the paper will examine ongoing anomalies, such as the Cypriot banking crisis of 2012–13, and conclude that these suggest the fiat government money system is heading towards a crisis that may result in a paradigm shift in which Bitcoin becomes more widely accepted than government currency.

What is bitcoin?

Bitcoin is a new currency that was created in 2009 by an unknown person using the alias Satoshi Nakamoto. Transactions are made with no middle men — meaning, no banks! There are no transaction fees and no need to give your real name. More merchants are beginning to accept them: You can buy webhosting services, pizza or even manicures.

Who Accepts Bitcoins?

Bitcoins are taking over the crypto-currency marketplace. They’re the largest and most well-known digital currency. Many large companies are accepting bitcoins as a legitimate source of funds. They allow their online products to be bought with bitcoins. With the extreme facilitation of transfer and earning of bitcoins, it would be a mistake not to accept these new-found online coins as cash. With a fluctuating value, the funds can either help or hurt the company. This fluctuation of inflation can be a boon to business, unless the market is valuing the coins insanely high, sometimes reaching 1000$!

Who Accepts Bitcoins as Payment!

US Hobby, an online shop that sells various gadgets

Osbourne Head, a shop that sells shampoo and hair products

Bam Boo Baby, a shop that sells baby products

TabsWear, a U.K shop that sells clothing

American Bullion, sells gold..

A1 Decals, sells decals..

Advance Disposal, rent a dumpster in Sacramento..

WordPress, online blogging website accept bitcoin

Reddit, a social and entertainment focused site, allows users to post news. Users can now buy Reddit gold with BTC.

Bitcoin growth

“Through rose-tinted glasses, Bitcoin can do no wrong. It is a currency that is free of central bank control, is decentralized, and it has proven that it can serve as a store of value for people who lose trust in their national currency (Greece, for example). However, the supply of every currency is controlled by some function, and in the case of the Bitcoin it is through the process known as “mining.” In layman’s terms, Bitcoin mining is the only way to introduce new currency to the marketplace, and it is performed by “miners” who use expensive software to solve math problems in exchange for the currency.

While the sheer difficulty of mining assures Bitcoin users that there won’t ever be a massive supply shock in the digital market, the way that Bitcoins are created causes one enormous problem. Primarily, it incentivizes miners to hoard the currency upon receiving it. This is one of the main causes of Bitcoin’s price volatility (it’s estimated that up to 25% of Bitcoins mined have never even entered the marketplace). The only way to alleviate this issue is to mandate that miners have to exchange all newly-mined Bitcoins for another currency of their choice. Otherwise, volatility will end up killing this currency’s potential, and a group of Bitcoin miners will control the supply. Is that really any better than a central bank?”

audure

Written by

audure

Audure is an International CryptoCurrency Service Providing firm based out of Australia. Audure claims to have team of World Expert traders for Digital Currency

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