The Virtual Currency

612 WordsJan 26, 20183 Pages
Virtual currency is growing very rapidly and it has become very popular in today’s world because it allows people to buy anything online such as drugs and offer other items. Also, People can use it to purchase books, games, gift, and download music and videos. Virtual currency such as Bitcoin is defined as a digital money (Seward, 2013). In other word, it is transferred to person to person through internet without going to financial institution such as banks. It was created by an anonymous programmer who used the name Satoshi Nakamoto. You do not have to make the transaction with bank and you don’t even need to give your real name. Different from other currencies, Bitcoin is underwritten by a clever cryptographic scheme, not by a government. Bitcoin does not have the purchase power that paper currency has, and is a long way from competing with the paper currency. However, there is an organization that tracks the Bitcoin economy. Bitcoin is different from paper currency for many reasons. First, Bitcoin is decentralized and unregulated which make it a big risk. Second, with Bitcoin you can send money to any person in the world. You do not need anyone’s permission to send money. Third, there is no fee and you can use it in every country. You can purchase it online or face to face with zero fee. For instance, I can send money back home to my parents with no fee instead of giving $10 to MoneyGram. Bitcoin can be used to purchase goods and services just like paper currency.
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