Bitcoin

Bitcoin

Student’s Name

Institutional Affiliation

Bitcoin

Arguments for and against the Bitcoin

Bitcoin is a digital system of currency that used for paying for goods and services online. The currency is available both in electronic form and minted coins. The electronic or online form is currently widely available especially in China. However, the founders are working hard to develop the currency note printouts. Since its invention five years ago, the currency has had both positive and negative arguments about it. Supporters of the currency purport that it will greatly reduce the online cost of doing. This is because it is widely available online so long as there is an internet connection. The currency can also be transferred online across the world and currently used for transactions up to $5000 (Rudarakanchana, 2013). Storage of the currency is on online banks called wallets that can be easily accessed, therefore, making it stress-free to pay for goods and services.

Other supporting argument point out that creation of new job opportunities will arise from manufacture of minting machines (Hill, 2014). This will further increase the currency penetration into the current world capitalism economy. The youth will have an advantage in this as they are better equipped with chip manufacturing knowledge. The online transactions will also require a variety of software and hardware. This will avail many job opportunities especially in the developing countries of Asia and Africa.

Beside the supporting arguments, the currency is facing criticism because it is very volatile in nature against other major currencies. For example, one day it dropped from a high of $1200 to a low of $600 (Matthews, 2014). This makes it a risky storage of value compared to other major currencies such as the dollar, euro and pound. The currency is also less flexible and non-divisible making its use limited to the payment of a few goods and services. For this reasons, very...