Bit coin

Insert Bitcoin Currency Bitcoin entails a peer-to-peer payment mechanism launched as an open source application by Satoshi Nakamoto in 2009. Bitcoin is also known as virtual currency, electronic currency or digital currency. The digital currency is not regulated by any organization or party as it is the case with central banks’ of conventional currency. As such, Bitcoin is seen as a devolved form of currency. Despite its growing popularity, economists concur that due to its lack of regulation, digital money is not real money, hence the possibility of its spiraling out of control through a process known as bubbling.
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 of such “ investors.” As such, economists consider Bitcoin as a currency that is not real and will crumble once the speculators are sure that their moneys will not grow.
Bitcoin is a form of virtual currency that supports online trade. Users can enjoy payment transfers at far cheaper rates in the online transactions. Bitcoin is gaining currency in Western countries where online transactions have become the current trend. In other countries, the digital currency is still not regarded as a real currency, which is sustainable due to its lack of control by financial regulators. Economists have also warned of the currency’s volatility, arguing that it is a game of speculators who cling to the hope that their moneys would increase in value, but in the real sense, it is not possible.
Works Cited
Boardman, Calvin, Sondomir, N. Alan, and Sondak, Harris. Foundations of Business Thought. New York: Pearson Education, 2013.