Monday, 16 June 2014

Money on my mind.


Currency, is a rather peculiar system which we use to purchase items. The exchange of metal discs and paper rectangles account for the value of an object. Throughout history, the one staple in currency has been the coin, made from bronze, lead, brass, nickel, gold and silver, and more recently the paper notes have come into fashion. However currency has really taken a turn into the technological era with the introduction of the bitcoin.

Termed as a decentralised ritual currency, the bitcoin has taken the web by storm. It of course has pros and cons.

Pros
It has a lower fee imposed by credit card processors at a rate of 2-3% which makes sense as to why numerous companies are moving towards the digitised currency (Expedia is a company which, justthis month   has started to accept the bitcoin as payment).
Cons
The main issue is that the bitcoin can be used for illegal activity, moreover like any currency they can be stolen. Unlike money which, I guess can be reimbursed- with the bitcoin you cannot get your 'money' back.

Although many see the bitcoin as a currency it is not accepted as a real currency by economists but is viewed more as a medium of exchange and a unit of account.  I'm not sure as to the cost of a bitcoin to the dollar recently, but in its lifetime it has fluctuated between $50-$266, which I suppose is not too positive it it trying to make a name for itself as a universal currency.

Personally, I would like to see the bitcoin accepted as a currency to be used solely online, as it may potentially help to boost the world's economy, however, until it is controlled (ie. an exchange rate is devised, and it's monetary worth is decided) I don't think it has the ability to rival the Dollar, the Pound, or the Euro (yet).

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