Pros And Cons Of Bitcoin

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Does Bitcoin Have Potential as a Currency in Future Markets? Just recently the price of a Bitcoin has risen to over 8000 dollars even though the currency itself was only introduced in 2009. This is an unusually rapid increase in price for a currency with a new concept. The appeal of Bitcoin is to give less power to banks or to have them removed completely and instead to have transactions be reviewed by peers by giving financial compensation. However, the implications of a bank removal could cause great financial chaos in the United States of America as well as other countries such as Japan and South Korea if adopted due to the current dependence on them financially. Even though a change in currency may help stimulate and revolutionize future markets the financial damage it may cause and the security risks that affect the current system will most likely make it unable to work in the future. The general mechanics of Bitcoin are that everyone has a copy of a ledger that can be changed at any time (Lewis et. al 7). Bitcoin is different from the system…show more content…
Since everyone has a copy of the ledger, this will never be a problem (Luther 3). Another advantage is that transaction processing will be cheaper than what it is due to banks not receiving some of the money as commision (5). Another point is that although it may not be suitable for markets with a successful currency such as the United States in countries with more ineffective currencies it could provide a good alternative to the current system they have (9). The problem is that the risks of decentralization greatly outweighs the benefits and if the current system works there is no point to change it at the moment. However it can make a potential replacement currency in the future if the U.S Dollar or other major currencies such as the Euro ends up

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