Essay On Bitcoin

1021 Words5 Pages

BITCOIN
Just as Europe has the euro, Russia has rouble and the US has dollar, the internet has its own currency as well – known as digital currency or cryptocurrency – bitcoin. If in real life, we have to use a particular currency depending on the country, the bitcoin. Internet users can pay everywhere no matter where the stay. Bitcoin was created in 2009 by unknown programmer (or a group of programmers). It is a special application of an electronic payment system based on mathematical proof - wallet on your PC containing virtual currency Bitcoin. The idea was to produce a currency independent of any central authority, that can be transfered electronically and with very low transaction fees.
Cryptocurrency bitcoin has the basic functions and properties of conventional …show more content…

There is no mechanism to recover stolen or lost bitcoins. If a person keeps the money in offline wallet, which is installed and codified on the PC, there is a risk of computer to be broken or the person might forget the password. After that there is no way to access the wallet and a person will lose all the money. If a person keeps money on online wallet, there is a risk of someone hack the account since all the data is on the server. On the other hand, there is a good chance to restore the money with banks, if a credit card is stolen or somebody hacks into a bank account. Even the stolen cash can be returned back by the police. But with bitcoin if you lose it, you lost everything.
Another bitcoin’s disadvantage is lack of awareness. A lot of people still do not know about bitcoin’s existing. The list of advantages for bitcoins is relatively small compare to physical currencies. Since not many people are aware of bitcoins, some businesses cannot apply it for use and transactions. Due to this fact, there are not many places where payment can be accepted with bitcoins. Another consequence of this is hard to trade and buy or sell bitcoins

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