Advantages And Disadvantages Of Bitcoin

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National media has proclaimed stories of recent Bitcoin millionaires and even billionaires. What is driving this massive growth machine? What are the impacts today and what will define our financial institutions of tomorrow? As it turns out, it is not necessarily a currency that is fueling this unparalleled growth but rather the technology that interlines and orchestrates the entire crypto-currency world. The technology that is redefining the world of finance is called the blockchain. To date, referencing the price per Bitcoin (BTC), the value of this system has surpassed the value of owning physical gold by a ratio of 12:1. For these reasons, among many others, it is imperative to explore the realm of digital currencies. Throughout …show more content…

The mining software tells the hardware previously discussed what to do and how. Furthermore, the software delivers the unsolved blocks to the hardware in order to be solved and then transmits the completed block to the open-source network to be input into the public blockchain as completed product. Several variants of software can be downloaded and optimally matched to run on your specific hardware and OS. Because Bitcoin uses open-source software, the challenge and limitations arise from the hardware that one can afford and power. Client-Side Hardware Requirements The user side hardware for BTC is the same as what would be used to conduct any form of electronic banking or investing. Using a computer (to include cell phones) with an internet source, simply create an account with an exchange such as Coinbase and type in how much and where to transfer funds. Any computer device with connectivity is capable of competing transactions through the vast BTC network.

Client-Side Software Requirements No special software is required for the customer to complete a transaction using BTC as long as the user has a computer (hardware) and an OS (software) such as windows or iOS that can display a website or app. Once the user logs into their digital wallet, they can initiate a transaction which will then be sent through the network and to the virtual

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