College essay from 2017
Since its birth, Bitcoin has grown in a substantial way. Bitcoin is an online currency that is used to buy products and other services in an anonymous way. This is online money that is its own currency. There are also many other cryptocurrencies, but none is worth as much as Bitcoin. Bitcoin is tax free and has zero transaction fees; it instantly sends money over a scan of a bar code. I think that Bitcoin should be used more often for a variety of reasons, including that it will help big and small businesses, it will help protect consumers from fraud, and it will make paying people easier. Bitcoin is a more efficient way of having money, it is the money of the future.
Bitcoin is an online payment system that was created in 2009. The creator of the currency is still unknown. Bitcoin and other cryptocurrencies are produced by a procedure called Bit-mining. Mining is when your computer solves a complicated math problem to gain Bitcoin. As time goes on and more Bitcoins are mined, the difficulty and time it takes to mine this currency increases. Mining has become more difficult and smarter computers were needed so now people use specialized kind of chips called ASICs, which are chips programmed only to mine Bitcoins.
This is not the only way to get online currencies. Another way is using an app called
Coinbase, which acts as a kind of wallet, where you could purchase bitcoin at any time but have to pay a small fee. You can also purchase Bitcoin from Bitcoin ATMs which are only in select locations. For example, there is one in Teaneck, New Jersey. They are more prevalent in Europe. (Below is pic of a Bitcoin ATM.)
Bitcoin is also used for investments, and that’s why I started using it and it created a big interest for me. Bitcoins are issued and managed without any central authority; there is no government, company, or bank in charge of Bitcoin. If you were to buy a Bitcoin when it first was discovered in 2013, you would be a multimillionaire now. To purchase one Biitcoin, it costs $15,000. But you do not need to buy one; you can buy a percentage of a Bitcoin, which will still grow or decrease in price but it will not be worth the amount of a full one. Bitcoin is used most in countries located in Asia and the South Pacific. Companies In Asia and the South Pacific lost a lot of money when the market crashed in 2008. A Lot of these companies stopped trusting big banks and started putting their money in bitcoin to watch it grow.
I think Bitcoin should be used more often in the United States because it would help small and large businesses. It would help small businesses because they are paying higher credit card fees while Bitcoin has a significantly lower transaction fees which would save a small business a lot of money. A man named Nicholas Tomaino who works for Coinbase, which is a place to buy Bitcoin states, “Accepting the virtual currency can save them from sacrificing between 3 and 5 percent of their revenues to credit and debit card fees.” Furthermore, Tomaino estimates that this extra 3 to 5 percent could help a small business improve their own business or even have more money to take home for themselves. Bitcoin could also help big business. Sean Williams, an Amazon reporter, claims that Bitcoin “could be the foundation that sets Amazon up to accept cryptocurrencies like bitcoin and/or Ethereum in the future.” Amazon is looking to implement Bitcoin payment to be accepted with any product that they sell. Dominic Frisby author of the book “Bitcoin The Money Of The Future” says “ we are headed into an age in which multiple currencies coexist, some private some public. There are already more than a thousand cryptocurrencies, each designed for a different purpose”Crypto Currencies may not be able to replace the U.S dollar it could still be used worldwide as a currency in many different countries. .After you reach a million dollars in your Coinbase account you will no longer have any transaction fees where credit card companies would have all these fees to pay. In several ways, Bitcoin can help big and small companies.
Another reason why Bitcoin should be used more is because it protects people against fraud. Dr. Kevin Curran explains, “Unlike an owned security system, one created by a company and licensed to, say, a bank, the blockchain distributed ledger is diffuse and there is no obvious place for a fraudster to start chipping away.” Bitcoin protects your personal identity when sending money, as it’s a digital cash which can be traced. Another reason why Bitcoin should be used more often is because it creates fewer risks of merchants selling items. This is because it is very hard to cheat someone out of Bitcoin because once you’ve paid you can’t get your money back unless the person repays you. Another advantage of Bitcoin is there is a freedom of payment. With Bitcoin you can send to someone in China and they will receive it in a matter of seconds. There is no central bank that regulates it no additional fees it the money can be sent anywhere at any single given time in the world.
Investing into Bitcoin could make you rich very quick. Just one year ago on this date one whole bitcoin was worth $855 now one full bitcoin is worth $11,000. Many people feel that bitcoin is a scam. My friend’s dad worked for google and this summer told me I should take my money out of it because it was going to crash at anyway. I did not listen to him and made a good amount of money from holding it. Dutch banker Ulrich Stephan thinks that a bitcoin investment is a high risk and is extremely volatile. While others have invested all of their savings into bitcoin and have become very rich. According to Martin Lewis famous Economic professor “If you don’t understand Bitcoin you should not be investing in it,”. He says this because bitcoin is so volatile that any investment is a high risk, and high reward. If you got into Bitcoin early enough you would have made a ridiculous amount of money. In 2009, a man named Kristoffer Koch bought about twenty-seven dollars’ worth of bitcoins, about 5,000 at the time. He forgot about then until 2013, where he discovered the Bitcoins he owned were worth 886,000 USD. He made a 33000% return on his investment. While returns today won’t be as good as Kristoffer Koch, bitcoin is still a currency that is traded a lot like the stock market you could instantly buy and sell it there’s just no tax being added when you sell. Investing in Bitcoin or other cryptocurrencies is more volatile than the stock market but could give u much bigger returns in short periods of time.
Although I feel Bitcoin should be used as a currency More often there’s still many things that need to be improved in the currency. Dominic Williams a Bitcoin Expert states “The value of bitcoin is notoriously volatile because it is created mainly by the interaction of speculative demand, which makes application as a normal currency impossible for now,”. Bitcoin’s Volatility will cause people to not trust the currency which would lead it to failure. Another thing Bitcoin has that’s a problem is how it will affect the banks which could lead to economic failure. Michael Lewis, the author of Moneyball, Spoke with CEO’s of Silicon Valley corporations about bitcoin he states the most enthusiastic supporters of Bitcoin are revolutionaries. Some hope that people will rise up and choose to go with Bitcoin instead of using traditional banks. This could cause the banks to fail which would create a crisis in the world’s economy. Another thing Bitcoin needs improvement on to become a currency that is used more often is the more bitcoin that is being mined from the internet the harder it is to receive bitcoin. When Bitcoin was first founded a bitcoin, transaction would take up to a minute but now it takes up to a few hours because of how difficult it is to mine bitcoin and how time consuming it is.
To conclude my argument, cryptocurrencies should be a legal currency used more often due to the reasons of higher security, enabling you to sleep easy, knowing that you have a secure investment for the future, so that you have the final say over what happens to your money, and no bank or government can intervene. This all could be done by just taking five minutes of your life opening a coin base account. Some Economic investors believe that bitcoin is the money of the future. As Long as the government keeps their hands-off Bitcoin and Other Cryptocurrencies the future of it is bright.