This paper analyzes the ongoing issues of Bitcoin and examines to what extent Bitcoin would serve as an alternative to conventional currency. After describing the historical background of Bitcoin in terms of monetary standards and its mechanism, two different views on Bitcoin as an emerging currency are discussed. Despite its huge potentials and innovative features, it shows that Bitcoin is still in its ongoing process of development. In conclusion, it demonstrates that it would take some time for the Bitcoin to be developed enough and also the thorough evaluation is needed from the public until it matures and becomes stabilized.
1. Introduction
First designed and introduced by Satoshi Nakamoto in 2008, Bitcoin is a decentralized, anonymous,
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In ancient times without currency, people directly bartered their possessions with others based on their needs. However, the barter system soon turned out to be an inefficient system since it was nearly impossible to measure objectively the values of different properties (Ritter, 1995). Ever since people had realized the need for an object as a means of payment in order to facilitate their transactions, they began to introduce the monetary system. From the period of commodity standards to the fiat standards, the form and the structure of currency has been developed over …show more content…
Satoshi Nakamoto, a pseudonym as an unknown developer of Bitcoin system, once stated in the open forum that:
The root problem with conventional currency is all the trust that's required to make it work. The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust. (P2P Foundation, 2009)
Bitcoin was designed by Nakamoto by applying an algorithmic scheme as an electronic currency in the way that the production of bitcoins to be controlled not by the government or any central institutions but the cryptographic rules and the participants of Bitcoin system known as miners who solve the crypto puzzles (Barber, Boyen, Shi, & Uzun, 2012). Participants in the Bitcoin open-source compete with each other by using their computer power to derive a solution to the mathematical problems generated from the cryptographic rules which require considerable computational efforts. According to Reid and Harrigan (2013), this whole process is referred to as mining which involves the verification of transactions and the issuance of the Bitcoin. The effort of processing is directly related to the reinforcement of security and integrity of the Bitcoin system itself as well. The more the users devoted to the problems, the stronger the Bitcoin system becomes against outside attackers (Barber, et al.,
Socially and economically, the global silver trade from the mid-16th century to the 18th century had a negative effect on the rest of the world. The trade’s earlier benefits did not last long, as it eventually weakened the Spanish kingdoms and Ming dynasty. The dependence on trade and the uneven disbursement of the product lead to the fragility of the economics of those governments that depended on silver. The economic effects can be seen in document 2, 3, 4, and the social effects of the silver trade can be seen in documents 5, 6, 7, and 8. According to the documents, the middle man profited the most from the dependence on silver, while the countries importing and exporting silver suffered massive damages.
Columbian Exchange allowed the change of animals, plants, trade, and technologies flourished the economy in different countries. One of these exchanged products, sliver, played an important role in social and economic role in Ming Dynasty, Spanish Empire, Japan and England. Japan and England benefited by the flow of silver, since Japan located at the mine center with numerous sliver, and England emerged in Asian trade networks . Spain in another way, was befitted at the beginning, but then Spain economy was ruined by silver. Moreover, silver brought more negative effects on economy and social life for Ming Dynasty and their solutions provided, since Ming Chinese government required taxes in silver.
Silk was considered a highly desired commodity across Eurasia. One reason behind this was the fact that silk was used as currency and as a means of accumulating wealth in Central Asia. It then became a symbol of high status in other parts such as China. It also became associated with the sacred expanding world religions of Buddhism and Christianity. There were various major economic, social, and cultural consequences of Silk Road commerce.
Tyler Rico 5/9/17 Section 2 DBQ Essay During the times leading up the 1500s Christianity and Islam both had different views on merchants and their craft with people from both faiths having varying degrees of opinions on it. Trade increased dramatically after the Mongols came into power and secured the Silk Roads making trade a lot more profitable and a lot less dangerous. This made the issue of trading come to light even more as it became more prevalent in people's everyday life. After the fall of the Mongols western nations raced to find new ways around the Silk Road as they did not want to trade through Muslim controlled land.
The Silk Road was a complex network of trading routes that spanned from eastern Europe to China, that allowed many goods to travel from city to city. During the Silk Road’s main prominence from around 200 B.C.E. to 1450 C.E., many changes took place - including ones that have drastically altered societies with change in both social hierarchies and major religions. However, even with the plethora of cultural changes that took place, a few aspects of the societies of the time stayed consistent, most noticeably the desire for luxury goods by the upper class. The Silk Road resulted in many changes to the social hierarchies of the time, especially in the treatment of women and merchants. In the second-wave civilizations prior to the road’s prominence, women and merchant were viewed as much lower members of society.
Before a single form of currency was established, local banks were allowed to make loans that were issued by their own bank notes. The local banks did not have to use gold and
According to the article The Devil in Devolution, the “devolution revolution” is seen as, “The shift in government’s center of gravity away from Washington and toward the states…” which translate to the return of power from the federal government to the state government. In recent years, the author of the article (Donahue) believes that the states have been given too much power, and the power of the federal government has been declining. The “tragedy of the commons” principle is when an individual abuses a shared resource to the point in which the supply is overwhelmed, and some people are unable to receive the resource. This applies to federalism because the states seem to be usurping all of the “power” from the federal government, so there
To maintain the economy in China, Mongol rulers built many roads to maintain trade and initiated the circulation of paper money. By building roads and circulating paper money in the Chinese economy, merchants were able to travel long distances and trade with other societies. However, the circulation of paper money was a lack of success; the Mongols didn’t maintain enough bullion to back up paper money which led to decreased revenue. Persia served as a crossroads of trade for the Mongols, they worked to secure trade routes and ensure the safety of merchants passing through their territories. Working to secure trade routes for merchants benefitted the Mongols enormously since they received a steady amount of revenue; however Persia soon also encountered the problem of receiving paper money with little value which also decreased revenue.
TELE 5330 – DATA NETWORKING ASSIGNMENT #2 Name: Prashanth Reddy Edunuri Grade (1) Most applications that use peer-to-peer communication also employs client server communication for some portion of functionality as decentralized peer-to-peer networks have numerous compensations over old-fashioned client-server networks. This system endorsed files to be questioned and shared between users, devoid of a central directory, and as a result shielded the network from lawful issues of individual users. By decentralizing resources, P2P networks have been able to virtually exclude expenses allied with a centralized infrastructure.
Mr. Junot Díaz’s paper titled “The Money” is a paper about the struggles of growing up as a Dominican, or less specifically an immigrant, in America. The paper offers a brief gimps into Mr. Díaz’s life as a young man, it shows his family structure and his neighborhood structure. It shows the type of people he had to deal with growing up and how he handled the way these people acted. The point of the text is to show how Mr. Díaz lived as a young man though one specific life experience.
Amusing the Million by John F. Kasson uses Coney Island as a turning point in American history before World War I. Coney Island at the rise of a new mass culture during the twentieth century allowed society to be free from the ever so conformity that the government has bestowed upon them. Being free from the urban industrialized genteel control; the creation of Coney Island served a purpose to detach from the formal culture in which they were living in. This era has sparked cultural freedom with that gave society a thrilling new find in amusement parks which went against societal genteel norms. Coney Island was used as an escape from the industrialized life that wanted to establish civil order. Kasson explains the turn of the century that encompassed educators, critics, and genteel reformers who took charge in controlling the public.
Charles Baxter’s book “There’s Something I Want You to Do” is composed of ten chapter, each focussing on one of the seven deadly sins and their vices. The chapter that stood out the most to me (and what this essay will focus on) was the first chapter, titled Bravery. Besides the fact it’s main character is a doctor which is what I’m going to school for, the emotions described in this chapter were very genuine. But, before getting into the specific contents of the chapter, the idea behind the seven deadly sins must first be understood.
Personally I don 't believe this is the problem because there will always be loopholes in every system. How can we run a system without a basis or foundation to lead us. The process and procedure can be beneficial to all if done correctly; all systems have flaws, but must learn to cope with
Before I read Atlas Shrugged by Ayn Rand, I associated a love for money as greediness and materialism. “The words ‘to make money’ hold the essence of human morality.” This statement has changed my view of money and it’s impact on society. In Rand’s book, a character by the name of Francisco d’Anconia gives a speech on the virtue of wealth after being called out for being a depraved product of money. He is scorned for his profits through the downfall of his competitors, but then ultimately talks about the problems his own company faces.
In recent years Bitcoin has invaded the internet giving people the chance to earn money without lifting a finger. II. Thesis: Every year since 2009 Bitcoin has been growing its own international economy without any government regulations. III. Preview: Today we are going to talk about what bitcoin is and how it works, why people like/don 't like it, and the possible regulations of cryptocurrencies.