Optional virtual currencies
There has been several loud hype regarding Bitcoin with regards to its viability as a serious competitor in the battle of currency. There is without a doubt that Bitcoin is not based on any rare precious commodities but is considered to be a tough contender in the economic world and is specifically focusing their attention on pushing more transparency in the currency market.
The easy adaptability of a tech-adaptable currency such as this one may prove to have more merits than disadvantages. With the dawn of worldwide internet connectivity so is universal currency take root. Now considered as a real holding of assets and securities, Bitcoin appears to be more than just a safe haven.
Quantitative easing and Bitcoin
In the U.S., the mood of the moment is basically attributable to government control. The oversupply of the dollar results in its weakening which theoretically could lead to uncontrollable inflation pressure in the economy. In other words, interest rates must be kept low in order for oversupply of the dollar not to have considerable consequences in the long run.
Few people are now considering the merits of bitcoin as an alternative in moving towards a more responsible global trade and exchange. Credibility, accountability and transparency is possible with this alternative virtual currency. Yet, there are also risks such as if used in illicit activities but no more than hard cold cash.
Proponents of using this alternative currency feel that the use of the system will result in most printing presses virtually unusable. Moreover, people who support the use of this optional currency argue that a transparent global currency could in turn yield in financial reforms that the economy really needs right now.
Great features of Bitcoin
This special type of currency is essentially mined by computer generated codes ascribed in arithmetic algorithm which is generally an abstract concept to most people. As a currency, it can only exist in programmes and not in the physical plane. The way it works, the method of utilising Bitcoin currency is by way of peer to peer protocols wherein these currencies all form an integral part of the general blanket of currencies generally known as ‘cryptocurrencies’. This type of currency is verified as a decentralised peer to peer network as previously mentioned.
Finally, Bitcoins are normally issued every 10 minutes and the rate of Bitcoins is scheduled to drop by fifty per cent every four years until there are approximately 21 million of them in virtual circulation. The interesting note is that there are multiple exchanges done wherein bitcoins are purchased and sold similarly like regular currency relative to the price of other currencies in the present market.