Bitcoin Explained
Written by: Cole Miller
First of all, we should truly understand what Bitcoin is. Bitcoin is an online currency that aims to eliminate all the problems we have with buying and selling online. Many people may not realize how much money and time we waste by using credit cards and other online forms of payment. Credit Card companies typically make their money in 3 ways: Interest, fees charged to their cardholders, and fees charged to the shops and businesses that accept credit. Bitcoin aims to eliminate fees on the cardholder. It does this by allowing payment without having to go through banks and governments to be approve. They use a peer-to-peer system to ensure each exchange is legit. This doesn't mean that your transactions are out and available for everyone to see, the only people who have access to the exchange are the sender and receiver. This ensures your and others' safety when using cryptocurrency.
When cryptocurrencies were initially introduced they were immediately put to use on the black market. This is due to the inability to trace a transaction. But that's not to say Bitcoin and other cryptocurrencies are used for bad. Bitcoin is thought of as a great way to stimulate the global economy. This is because Bitcoin makes it much easier to access capital and financial services. When using bitcoin you don't have to worry about exchange rates or inflation, because one bitcoin is worth the same all around the world. Bitcoin is especially useful in 3rd world countries where banks might not be set up, Bitcoin gives everyone the ability to spend their money in a safe and fast way. So what do you think is Bitcon a smart investment?
Works Cited
Andreoentoro. “The Impact of Bitcoin on The Global Economy.” Blockgeeks, 19 Mar. 2020, blockgeeks.com/the-impact-of-bitcoin-on-the-global-economy/.
Browne, Ryan. “Bitcoin Is at a Tipping Point and Could Become 'Currency of Choice' for Global Trade, Citi Says.” CNBC, CNBC, 1 Mar. 2021, www.cnbc.com/2021/03/01/bitcoin-btc-is-at-a-tipping-point-citi-says.html.
Voigt, Kevin. “What Is Bitcoin, and How Does It Work?” NerdWallet, 10 Feb. 2021, www.nerdwallet.com/article/investing/what-is-bitcoin.
I do think that Bitcoin would be a smart investment and think it's a good idea for those who do not like credit cards getting a cut of the transaction. However, the cut that credit card companies take are pretty minor, which I personally don't mind, and I like knowing that credit cards are typically more secure than Bitcoin. Additionally, Bitcoin does not have any refunds which is another reason why scammers attempt to hack/take control of people's Bitcoin accounts, aside from the fact that transactions aren't traced. However, newer cryptocurrencies such as "Ripple" are starting to implement refund functions, which might attract more people who appreciate security. Although I wouldn't invest in Bitcoin itself, I would be more inclined to invest in one of its newer counterparts.
ReplyDeleteI always knew of Bitcoin as many of my peers use the app, but I never quite had an all around understanding of it. From the information I gathered from your blog, I am able to come to the consensus that Bitcoin is not the “smartest” investment, although it can definitely be useful in small intervals of time. This is because credit card companies appear to be much more secure and authentic, whereas Bitcoin hasn’t met that standard.
ReplyDeleteI really like how you were interested in this topic personally. I think that it made the piece much more engaging because it really sounds like you have a very strong opinion on Bitcoin, and you think about it a lot which is very good. I think that you did an excellent job on this and I agree with you 100%.
ReplyDeleteI have always heard of the term “bitcoin” but never understood what it means and does in the world. This artiles gave a good explanation on what it is and the history and current use of bitcoin. This article showed me that bitcoin is stressful and a lot of time and passion goes into it. Bitcoin can be a scary thing to get into but I think that if you know english about it, you could make a good profit or whatever you please to do with it. I don’t think I will ever use bitcoin but it was nice to read more about it.
ReplyDeleteBitcoin is an interesting topic. This blog captures your attention because it is talking about something that we usually don't know much about. Bitcoin is a smart investment for those who are very stable financially but otherwise I would say it is a waste of money to leave the market for them up to chance that it will be more expensive in the future.
ReplyDeleteThis blog was very interesting to me because I've always been really confused about bitcoin, like what it is & how it works. Bitcoin to me is still confusing, but you did a great job explaining it, I think this is a really good start! I know a lot more about bitcoin than I did before I read your blog.
ReplyDeleteI really like the simplicity in this article. I always knew that bitcoin would be big but not this big. I wish i would had invested when i said i should which was around 7,000 dollars which is very low compared to now.
ReplyDeleteI think bitcoin is a good investment, Only if we got into it 5 years ago. There are some things I didn't know about bitcoin like it doesn't have fees like a normal credit card. Also, I never thought about how a bitcoin and other cryptocurrencies have the same value no matter where you go in the world. Though I wouldn't invest in cryptocurrency right now, I would rater invest in other things.
ReplyDeleteI think with the right usage, Bitcoin could be a viable investment. I really didn't know much about the advantages of utilizing a cryptocurrency like Bitcoin, so I can now see why there are so many people that use it instead of credit cards. I liked the simplicity of this article as well as the points you've made, as you even connected it to other countries and how it could be an even larger advantage to them. I wonder if the worth of a coin within this system has had to change because of inflation, or if there were any other factors that have had to have been tweaked because of the modern economy. Other than black market use, are there any other disadvantages of using a cryptocurrency?
ReplyDeleteSo many of my friends-mostly guys-are very into bitcoin and constantly talk about it, but I've never known what it was about. This was super helpful for me to get a glimpse into what is going on in tat realm. The idea of it is super interesting, but also scary with how you said it is involved in the black market. This makes me wonder if the government or other bodies will ever try to dismantle the program or disrupt the actions going on within it? Overall, your engaging and passionate writing helped me better understand what bitcoin is and it is something I'll have to look into!
ReplyDeleteI think that this was a very interesting blog. But will you easily be able to track what you purchase? As well as is it safe from hackers? I think that Bitcoin could be very beneficial to people but personally, I believe that Bitcoin should be the only method people should use to purchase things. Anyways, I have learned a lot about bitcoin after reading this blog.
ReplyDeleteI love the idea of bitcoin. Money at it's simplest form really. Although they say more money leads to more problems, bitcoins are a great way of eliminating these problems. One thing that confuses me is, if bitcoins goal is to have the same worth world wide, how come it costs more now? I know 7 years ago, bitcoin was dirt cheap, and now it has skyrocketed. So how will it be affordable for everyone. Will there be other forms of cryptocurrency in the future for the everyday middle class. Is bitcoin like the 100 dollar bill of cryptocurrency?
ReplyDeleteI never really knew what bitcoin was but after reading your piece I understand it a little more. I think that bitcoin would be a good investment. Although it is not something that everyone uses it has been widely accepted since we first heard about it a few years ago. I honestly would have never thought that bitcoin was going to become what it has today and with that being said I wish I would have invested into it many years ago. What are your thoughts on bitcoin? DO you think its smart to invest in?
ReplyDeleteIt will be interesting to see if bitcoin eventually overtakes credit cards as a more popular payment method. One problem I could see with this, is that since Bitcoin is an online currency, people could potentially hack the system and make a lot of money from it. Although it is said to be safe from hacking right now, technology is always getting smarter and better. Another question I have is who controls Bitcoin? For example, the government is in charge of printing money and regulating things like inflation, but who is in control of Bitcoin?
ReplyDeleteI've heard about Bitcoin before and the term cryptocurrency, but never really understood what it was and how it worked. I find this whole subject really interesting and want to know more about how it came to be and how you can even get it in the first place. I did some research about the inflation in Venezuela, and found out that many citizens were using Bitcoin to support themselves and their families as their money was practically worthless. I wonder in years to come if other forms will become as popular and will be more widely used.
ReplyDeleteNice work, Cole! Bitcoin has always been a confusing concept to me, and it kind of didn’t seem real when people talked about it, so it was helpful to hear someone list all of the benefits. My question is: how many people around the world actually use bitcoin? Will it eventually become the primary form of currency?
ReplyDeleteGreat Job Cole! I know about bitcoin and have heard about it for some years now but I did not know about it being put to use on the black market. This really surprised me. I did not know that using bitcoin could eliminate the use of following transactions and using it to purchase things through the black market. Also I did not know about not having to worry about inflation and exchange rates. How might one acquire bitcoin or would it be smart to invest in this virtual currency. Overall, great job!
ReplyDeleteI think almost everyone has heard someone mention bitcoin and cryptocurrency but I think very few people actually understand what it is and the benefits and downsides. I only have a few questions about how bitcoin is secure when it comes to transactions, how do they ensure only the sender and receiver only can see the transactions? I also wonder how come inflation does not impact bitcoin? If everyone has 100 bitcoins or something how does the price of goods and services remain the same? My final question is how will people who may not have a lot of access to technology be able to benefit from bitcoin? Will they even be able to use it? If they cannot will it every truly become the primary form of currency? Overall I think you did a great job informing people on a well known subject but that people don't actually really know about.
ReplyDeleteI’ve always wondered how bitcoin really works and I think it is a cool new way of making exchanges. I remember years ago when bitcoin wasn’t worth much and a man bought a pizza with 10,000 bitcoin! That’s worth 476 million dollars now. That is crazy. Back to the question that you proposed… I think if you were to have made the investment in bitcoin 10 years ago it would have been a fantastic investment, but now as bitcoin is worth so much already, the chances of it going up seem slim. I don’t think it is a great investment nowadays. I think bitcoin will be a great new way to make transactions and I loved learning something new from your post. I just have one question… Do you think bitcoin will become a main way we make transactions in the future?
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ReplyDeleteTo be honest, I don’t know anything about Bitcoin. I’ve heard of the term and people talking about it as a cryptocurrency, but never did my own research or read about it until now. My question is how could this be widespread in the next few decades? Will people without this technology be able to be invested in this? Also how does inflation not affect Bitcoin? Overall, this gave great knowledge on what it is and helped me understand more of what Bitcoin is. Great job!
Cole, I have heard many stories about how people lost a ton of potential money due to the fluctuating value of bitcoin. I think it would be helpful if you explained why and how that happens. I also want to know how I get my hands on bitcoin? If you explained the mining process that would have been helpful. Overall very helpful. Good Job!
ReplyDeleteI have to say, this was so interesting to read about! My brother uses bitcoin all the time to buy & sell shoes and he makes a great amount of money. I never really understood what Bitcoin was until I read your article. I always just thought that it was some kind of illegal currency that you could buy things on the black market with. I understand that it isn’t always used for just illegal things but with something so new to the world everyone thinks that this couldn’t be a good idea. But with that being said, it turns out that Bitcoin doesn’t seem so bad once you get to know this foreign currency. Maybe one day this will get the better attention it deserves. Good job!
ReplyDeleteI really like the inflation doesn't effect bitcoin, which helps it not lose it's value be of inflation.
ReplyDeleteAnother good thing is that more Bitcoin cannot be made, only found. I think it is a good investment, since it cannot be manipulated very easily. The worth of it is still going up. There is no government or corporation changing the rates. There is a lot of stability in this currency, as well as continued growth. It seems like a good investment.
ReplyDeleteBitcoin is risky. It's really unstable but also scammers are constantly trying to hack into bitcoin accounts. Furthermore with a credit card if someone steals money with the card the card holder isn't at risk so its a super secure option. Frank Abagnale Jr. one of the leading authorities on credit card fraud swears by it. There is no security in bitcoin. The reason it was so popular is because companies like Silk Road require you to use Bitcoin because its untraceable. Thats the only reason anyone would really need it considering credit cards barely even take any money from transactions and the only reason you would care that your transactions are tracked is if theres something you don't want your bank or credit card company seeing.
ReplyDeleteI always hear about Bitcoin being a cryptocurrency, but I have never actually tried to understand exactly what that meant. I didn't realize that it's purpose is to eliminate all the charges and avoid inflation, which is actually super cool that we have a currency that is able to do that. However, there are many forms of cryptocurrency, what is special about Bitcoin?
ReplyDeleteBitcoin is always something I hear about but never know how to get into. This post clears up a lot of things about it but I feel like now it's too late for a newcomer to step in after all the ups and downs in addition to how expensive one coin is.
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