Bitcoins Is the Currency of Choice Essay

2177 Words 9 Pages
Achieving popularity late last year for its seemingly inflated value, Bitcoins have been lauded by some as to be the end-all and be-all currency of choice. Since its inception in 2009, the fledgling digital currency has weathered its share of skeptics as retailers worldwide have embraced it as a new form of payment from its customers. Despite its reputation for being known as an open-source alternative to conventional money some in economic circles have called into question the viability of digital currency that is both unregulated and is increasingly used as a speculative asset by investors. Bitcoins enjoy a level of popularity that
In order to truly understand the concept of the Bitcoin platform, it must first be explained. The very
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So Bill gives the two numbers to Sally, and Sally gives Bill the car. The community recognizes two facts: The title to the car has been transferred from Sally to Bill, and Sally is now the owner of the numbers 18 and 112.” (Murphy, 2013).
In essence, each member of the community maintains a specific record of ownership of each of the 21 million integers mentioned above. This decentralized approach to the currency means that each Bitcoin is mined and created by the very network it emerges from. Potential minders can engaged with this network and participate in the mining operation by simply connecting to the network via their own computer through widely distributed Bitcoin software (Kroll, Davey, & Felton, 2014). With its peer-to-peer approach, a community of miners help mine and earn the currency often resulting in currency-sharing in which users will share blocks with not only other users but websites and software that aide in the process of mining (Lee, 2013). While this may be a cumbersome approach for some that requires a tremendous amount of hardware power, others have heavily invested in the process by buying special mining equipment that runs 24 hours a day with the sole intention of mining blocks. The tremendous amount of energy output for Bitcoin mining has become problematic for many and as such, despite its popularity, remains a niche exercise.
Naturally, with the popularity of Bitcoin…

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