Bit-Coin

As of November, 7, 2017, the price of one Bitcoin reached $7,500. The internet crypto-currency has taken the world by storm, and its price increased by ten times over in the course of the last year. The hype around Bitcoin continues to grow as the price rises. The price of one bitcoin fluctuated tremendously on a daily basis. Five to ten percent changes occur almost everyday, the huge changes seem to show a sense of instability. The thing about bitcoin is that the price of it solely depends on its supply and demand, and people have mixed feelings on the matter. Until there is a unanimous positive opinion upon bitcoin, it will be hard for it to become a common currency.

In 2008 a man or woman by the name of Satoshi Nakamoto, submitted the idea of Bitcoin onto an internet form. Bitcoin would become a decentralized currency, which means money can be sent directly to person to person, without a middleman. (bank) Once Bitcoin is exchanged that transaction is verified by a bitcoin miner. The miner’s job is to use their computing power to verify transactions, and in return they are awarded bitcoin for using their computing power. This very mechanism of the individuals, as miners, doing the bank’s job as verifying transactions makes Bitcoin a decentralized currency, completely controlled by the people.Your Bitcoin account can never be frozen, there are low fees, and there are no middle men. The only problem is the instability. There is a limited supply of bitcoin, therefore, there is no way for inflation in bitcoin to occur. There will only be twenty one million bitcoin in existence.

Bitcoin is very much like gold, except it is only online. In order to get Bitcoin, one has to mine for it, just like gold. Bitcoin mining is done by setting up a computer and having it solve complex math problems around the clock. It is not as simple as using a laptop. Now it takes lots of energy and powerful computers.

I feel that the money making ship for Bitcoin has sailed. The growth of bitcoin is extremely unlikely to continue, things depending on supply and demand do not maintain that type of exponential growth. For a matter of fact, things that grow very quickly.

 

 

Jake Blanchfield

11/10/17

Jake Blanchfield