BitCoins: A New Medium Of Digital Exchange.

The Internet has revolutionized our lives with the convenience of the virtual world to do everything from shopping to paying our bills, even transferring funds from one place to another. In minutes, using our bank credit cards, debit cards and checks we are able to control our transactions. We can trace our exchanges through account summaries or receipts to show how the money was spent and where.

Normally our cash accounts hold our identity and important personal information that help track what we are doing with our cash-which is a good way to track spending trends and other economic analytics. But, picture a world where the currency is virtual and can be used for trade in goods and services. The same as tangible money, only it requires no banks, verification of your identity and lastly has no federal control.

Enter, “The Bitcoin”. In 2009 a gentleman using the fictitious name of Satoshi Nakamoto(Cryptocoin.com) spawned the Bitcoin. Bitcoin is an electronic only currency which is created on computer, and is not controlled by any government or centralized authority. For some people who have adopted this new form of moolah it’s a yay! , for others it’s a solid nay.One bitcoin currently holds the value of $354.78 USD, (WSJ.D). Zealots of this new crypto currency are liberating themselves with what seems to be a new next trend in spending. Bitcoins could virtually eliminate the need for financial institutes like banks, and the need for credit cards.

Let’s take a look at some of the debated issues thus far between the “Bitcoiners” vs some government and banking officials on the viability of the Bitcoin. (Businessinsider.com)

Pros

1. Bitcoin has value.

2. Can be used for trade in goods & services.

3.Anonymity for user.

4.Conduct trade using e-address only.

5.Not regulated thus far by government.

6.Creation of the blockchain network which is shared by people looking to purchase bitcoins that contain every bitcoin deal traceable.

7. No need for a 3rd party.

Cons

1.Very volatile and unstable on market value.

2.Illegally used on the”Dark Web” blackmarket.

3.Lack of real user identity.

4.Harder to trace how, when & why money is moved.

5.Decentralized (no federal regulations or tax)

6.Bitcoin community has own verification of transactions only within its community of user.

7.Could possibly eliminate the need for banks.

Sounding off on the Bitcoin craze, Oliver Sussman ,CEO of Swiss Bank was quoted saying” All it takes is one strong brand or a strong security level to say bitcoins are reliable and then the whole industry will follow” (WSJ.D). USB’s stances on the bitcoin called into question its viability but now are contemplating a way to harvest ample benefits from it.

Like anything new and unknown there will always be skeptics and there will be people who are all in. The Bitcoin is a fairly new unknown but is gaining a large community of believers who are on a quest to make bitcoin a viable currency for the future of trade for goods and services. Before you become a “all inner” do your research and watch!