•Read/Listen
to NPR Planet Money “What is Bitcoin”: http://www.npr.org/blogs/money/2011/08/24/138673630/what-is-bitcoin
•Answer the following:
1.What benefits of a digital currency,
compared to individual countries’ currency?
2.What are the risks/shortcomings of using
a digital currency?
3.What are the benefits of using BitCoin?
4.Do you think that BitCoin is a
real alternative or just a fad? Why?
1. What benefits of a digital currency, compared to individual countries’ currency?
ReplyDeleteThe benefits of a digital currency respect to an individual’s country’s currency is that no one can print BitCoins and so their value cannot decrease and inflation is less likely to occur or if it occurs at a very slow rate. Another benefit is that it is self-regulated by the people, as stated by Gavin Anderson: “For me that's more comforting than thinking that politicians or central bankers won't screw it up. I actually trust the wisdom of the crowds more.”
2. What are the risks/shortcomings of using a digital currency?
The risks and shortcomings of using a digital currency is that however the system is protected it is likely that hacker will try to hack in the system and maybe they will be able to hack in the system. In this manner then the users will find themselves without any money when a hacker hacks inside the system. In addition if you have a system or economy only based on a digital currency and the system doesn’t work for some time then no one will be able to pay and businesses will not gain money stalling the economy.
3. What are the benefits of using BitCoin?
The benefits of using BitCoins are that you don’t have to carry around a wallet and maybe lose it with a lot of money inside it and you will get upset the rest of the day and not able to buy anything. Then the transactions will occur more rapidly and they will be more accurate. Also another benefit is that it is not printed so there is a fixed sum and there can be less inflation.
4. Do you think that BitCoin is a real alternative or just a fad? Why?
I think that it is an alternative because it will make things much easier and less complicated. It will make transactions go faster and mainly make the lives of people easier.
1.What benefits of a digital currency, compared to individual countries’ currency?
ReplyDeleteThe benefits of a digital currency in respect to an individual’s country’s currency is that the inflation will never go up or down because no one can print the Bit Coins which are virtual and stay the same forever. Also there is a quote by Anderson that the Bit Coins are controlled and adjusted by the people which depending on how much they buy or how much they self: “For me that's more comforting than thinking that politicians or central bankers won't screw it up. I actually trust the wisdom of the crowds more.”
2.What are the risks/shortcomings of using a digital currency?
One of the main risks are HACKERS that hack the server or your computer and maybe sell or buy through you Bit Coins or maybe if there is the possibility donate them to someone which eventually will give them to him. Also if everyone starts using the BitCoins, cash will be put to side (not in Italy) and the economy will go down.
3.What are the benefits of using BitCoin?
The benefits are that people maybe will buy things in an easier way by using their phones to give the BitCoins to the shop or bar. It is also very useful because people don’t carry around cash and at the cash register there would be no lines anymore.
4.Do you think that BitCoin is a real alternative or just a fad? Why?
I think that BitCoin is a fad because there is something already existing that I believe that is much better, it’s called NFC, which works in this way: in the stores there are electronic receivers and when you put your phone really close to it, it beeps and gets the money from your credit card attached to your NFC account without any PIN, put if the recipte is more than 20$/20€ you need to insert a code because if they steel you cell phone they would get all your money.
1) The benefits of a digital currency are that since it can't be "printed" inflation can't rise or decrease. Also as Anderson said “For me that's more comforting than thinking that politicians or central bankers won't screw it up. I actually trust the wisdom of the crowds more.”
ReplyDelete2) One of the many risks are Hackers, or people who can hack into your server and buy/sell through your bitcoin wallet. Another theory is that paper cash will be put aside and the economy will go down
3) The benefits of using BitCoins are that everything is done electronically and therefore people need to carry around less paper money.
4) I think BitCoin is more of a Fad than an alternative because I don't think many people will trust an iPhone with all their money. Your phone could be stolen or hacked into and you would lose a considerable amount of money.
1.What benefits of a digital currency, compared to individual countries’ currency?
ReplyDeleteThe benefit of digital currency is that the currency will not be subject to inflation.
2.What are the risks/shortcomings of using a digital currency? Digital cuurrency being digital and online coud be subject for digital frauds and hacking.
3.What are the benefits of using BitCoin?
There are no actual benefits for using bitcoins. Money is saved electroniccaly, but actually this kind of currency does not benefit the "paper" economy.
4.Do you think that BitCoin is a real alternative or just a fad? Why? BitCoin is totally a fad. It does not at all represent an alternative.
1. The benefits of a digital currency compared to an individual’s country’s currency is that the inflation won't increase or decrease as no one is able to print Bit Coins, due to the fact that they are virtual.Anderson mentions that he feels more confortable knowing that politicians or/and banks "won't screw it up".
ReplyDelete2. Hackers are the greatest risks using a digital currency, they are able to hack into your computer and can basically sell or buy through your own Bit Coins. Also, as mentioned in the previous question, Bit Coin is something virtual, therefore as for materials, actual cash won't be needed as mucha dn economy will go down.
3. Benefits using BitCOin may seem few but I think are a great step forward in huanity, as money is "electronic" therefore people will need a few things with them, perhaps their smartphones and thats it, no more cash, which means less money being stolen as it will be harder. Sure, people might loose their phone too and that may be a disaster however it is still easier to loose or steal money.
4. As much as I love technology and human progression in all these areas, I personally think that BitCoin will be a fad because many people, including me, will not simply put all my money earned into one little phone/device. Phones are very easy to break and once you break or loose it, then what? Perhaps there is a way to solve this problem, however, it is still a pivotal issue which must be taken into consideration when discussing whether BitCoin is a fad or a real alternative.
1.What benefits of a digital currency, compared to individual countries’ currency?
ReplyDeleteUsing digital currency has both its advantages and disadvantages. One thing very good about BitCoin is that it is a currency that is immune to judgments because it is a peer-to-peer system. So this means the crisis’s that occurred in Cyprus can’t happen in BitCoin. Another advantage of digital currency, which is also a disadvantage, is that since the money is digital you don’t need to keep cash on you so that you wont lose much. Also the credit for BitCoin is skyrocketing, so if you had bought stocks of it earlier, you could sell it for more than you bought it for.
2.What are the risks/shortcomings of using a digital currency?
Although digital currency has its many benefits, it is the risks/shortcomings that will keep many people from switching. For starters the thought of leaving your money on-line in a time like this leaves many people to worry about digital thieves and hackers stealing your entire fund online. In fact this has already happened to BitCoin. A major shortcoming of digital currency is where you can use it. Although you can buy things online, digital currency does not have that big of a use in the physical world, not many stores accept BitCoins. The stores and organizations that accept BitCoin are all mainly in the first world countries like America.
3.What are the benefits of using BitCoin?
By using BitCoin you wont have to worry about using credit cards online, because you can use BitCoin as a medium for online purchases. In a couple of years when BitCoin is more widespread and used, you wont have to carry much to any cash on you, you could just you se a smartphone for all the purchases you make. You aren’t susceptible to loosing your money because BitCoin wont re-poses it like the banks in Cyprus did.
4.Do you think that BitCoin is a real alternative or just a fad? Why?
I think that BitCoin is just a passing phase because I don’t think many of the adults would be willing to convert their cash into digital money.
1.What benefits of a digital currency, compared to individual countries’ currency?
ReplyDeleteCompared to the countries' currency, the benefits of having a digital currency, such as BitCoin is that it is a peer-to-peer system thus there is no central operating system like the computer, thus it can be purchased. In addition, because it is physically made, the "money", or the currency, you can easily purchase it online, and it can make your daily life a lot smoother and faster. However, one disadvantage is people can also use that money to buy illegal stuff, and so one disadvantage is because it's not physical, it can't be known whether the payment is illegal or not, when instead a physical currency, with physical money, can be tested whether it is legal or not.
2.What are the risks/shortcomings of using a digital currency?
The risks/shortcomings that might occur when using a digital currency is convincing other to use BitCoin. As we learned, many hackers and professional illegal computer users, know how to hack into accounts and steal their money from their credit cards, thus the majority believe this will happen the same thing with BitCoin. The company/currency would require assurance and security within each account for it to be safely stored, like a bank. Another factor is due to the fact that many of the people are using physical money, and unforunately only in the US, Europe and some parts in Asia have access to internet, and communication with the advancement of technology, thus only a few countries would be able to use BitCoin. What would happen to the other 50%? Would they keep on using physical money? How would the currency be introduced in a way so that people in third world countries would be able to use? This is one of the most important factors to solve for it to be successful.
3.What are the benefits of using BitCoin?
The benefits of using BitCoin is you can use the currency anywhere you go. And because it is not physical, but digital, you can easily access BitCoin, or digital money through your iPhone or any device connected to the internet to pay something; whether it's a sandwich or a bag, as long as the store accepts BitCoin, it is easily accessible.
4.Do you think that BitCoin is a real alternative or just a fad? Why?
I believe BitCoin could be a real alternative because of how technology will keep on rising. Human society has to keep up with the technology, so eventually, one way or another, the third world countires would have to gain access to the new techonology or else will be forever remained unstable and would never improve to be part of the global society.
1.What benefits of a digital currency, compared to individual countries’ currency?
ReplyDelete2.What are the risks/shortcomings of using a digital currency?
3.What are the benefits of using BitCoin?
4.Do you think that BitCoin is a real alternative or just a fad? Why?
Answers
1)Using digital currency would ahve both advantages and disadvantages. One advantage about BitCoin is that it is a currency that is immune to judgments because it makes the use of the peer-to-peer system. So this would means that an economic crisis can’t happen in BitCoin. A disadvantage, is that since the money is digital you don’t need to keep cash on you so that you wont lose much.
2)Hackers are described as the greatest risks using a digital currency, they are able to enter into your computer syste, and can basically sell or buy through your own Bit Coins.
3)The benefits are that people will buy materials or items with more facility than by using their devices to give the BitCoins to the shop or bar. This is useful becuase Bitcoins don't have to be carried around like cash.
4)
I think that it will make things much easier and less complicated. It will make faster transactions occur and facilitate lives of people in an easier way.
1. The benefits of digital currency is that inflation of prices cannot increase or decrease. This is because no one prints them out so their value stays the same.
ReplyDelete2. One of the main risks for today’s world are the hackers. They could hack someone’s computer and use their Bit Coins. For sure the economy will also decrease.
3. The benefit is that it is virtual money which means that everything is done electronically. People don’t have to carry money around.
4. I think that is a Fad and not an alternative. Someone could just steal your electronic items and so use all of your money.