I believe that cryptocurrency, such as Bitcoin, is viable as a long term form of alternative currency. According Brian Martucci, Bitcoin is a cryptocurrency that is “controlled by a decentralized network of users.” (Martucci). There are hundreds of cryptocurrencies in use today, but Bitcoin is the considered the most popular and most versatile cryptocurrency today. Cryptocurrencies are supported by source codes that use algorithms to prevent counterfeit of cryptocurrency units. According to Martucci, Bitcoin’s source code is “virtually impossible to break.” (Martucci). When discussing cryptocurrency, a few terms such as “blockchain” and “miners” often pop up. According to Alex Hern, the blockchain is at the heart of cryptocurrencies. (Hern). The blockchain is basically a ledger of all cryptocurrency transactions. The blockchain allows for the public to have an complete record of ownership.” (Hern). Miners are the ones who build the blockchain. The process of mining varies depending on the cryptocurrency. Bitcoin, for example, chooses one miner about every ten minutes to take all of the transactions and bundle them into one block. (Hern). The work done by the miners helps to prevent double-spending. Cryptocurrency, particularly Bitcoin, are becoming widely accepted as a payment method. According to Martucci, it is possible to buy virtually any item by using Bitcoin units. (Martucci). When using cryptocurrency, international transactions are easier. When using
cryptocurrency, there are no international transaction fees unlike when using credit cards, money transfers, and ATM withdrawals. There is also more anonymity and privacy when using cryptocurrency than traditional currency. For example, Bitcoin has built-in privacy protection that allows the users to separate their accounts from their public life, making it harder for the accounts to be hacked. (Martucci). There are also private keys (passwords) that must be used in order to complete transactions. Along with the pros of cryptocurrency, there also cons. Despite being widely accepted as a payment method, cryptocurrency has a few cons.
Cryptocurrency, particularly Bitcoin, is exposed to scams and fraud. Cryptocurrency is also susceptible to high price volatility. For example, Bitcoin’s value fell by more than fifty percent after the collapse of Mt. Gox. (Martucci). Another con of cryptocurrency is how, unlike credit car companies, there is a lack of standardized policy regarding chargebacks or refunds. (Martucci).
Overall, I do believe that cryptocurrencies, such as Bitcoin, are viable as long term forms of alternative currencies. I feel that the pros outweigh the cons. Also, with more policies and precautions put into place, I feel the cons could significantly be reduced. There are already hundreds of cryptocurrencies in use today, and the number of cryptocurrencies in the world will continue to climb. Overall, I feel that the cryptocurrency will continued to be used in the future and will eventually be viable as a long term form of alternative currency.
Works Cited
Hern, Alex. “Bitcoin and Cryptocurrencies – What Digital Money Really Means for Our Future.” The Guardian, Guardian News and Media, 29 Jan. 2018, www.theguardian.com/
technology/2018/jan/29/cryptocurrencies-bitcoin-blockchain- what -they-really-mean-
for-our-future.
Martucci, Brian. “What Is Cryptocurrency - How It Works, History & Bitcoin Alternatives.”
Money Crashers, 22 Mar. 2019, www.moneycrashers.com/cryptocurrency-history-
bitcoin-alternatives/.
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