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Essay: Bitcoin Will Revolutionize the World's Economy.

Steeven P. Viteri

Escuela Politécnica Nacional-CEC

Alternative currencies

Professor: Heidi Schultz.

April 30th, 2021

When everyone believes a world without green papers and pieces of metal replaced for

computer code is impossible, some people stop to think about optimism, pessimism, f*CK that- we are

going to make it happens. This one is a sign that we are going through a period of economic transition

where innovation plays an important role, where we could either watch It happens or be a part of it.

Bitcoin is a purely virtual currency that does not have the government's support, so its value can

fluctuate. Nevertheless, Bitcoin should be a reasonable payment method because it is good for business,

allows currency users to make money, and provides privacy and protection to consumers.

Bitcoin is a digital currency created by an anonymous computer programmer or group of

programmers known as Satoshi Nakamoto in 2009. Owners of Bitcoins can use various Web sites to

trade them for physical currencies, such as U.S. dollars or euros, or can exchange them for goods and

services from several vendors. (Britannica,2018) And in exchange for miner's computing and electrical

power, they have rewarded a new Bitcoin that is now in circulation. Every 10 minutes, a miner solves a

"block" of encrypted data, and by doing so, more Bitcoin is introduced into circulation each time.

Initially, each block creates 50 new Bitcoin.

Trading bitcoin becoming more and more popular every day and nowadays is so much easier to

buy bitcoin than earlier. There are a lot of trading platforms on Internet, but are they all so good? A lot

of them have a high fee, some were hacked or have bad security and even the platform interface can be

not easy to understand, especially for beginners. The Bitcoin price rally has been blowing the minds of

people over the past week. Each time everyone thought it couldn't get higher, it eventually did. Hype

and panic around the rally, as well as the overload of the Bitcoin services platforms, have been

accompanying the trading process. Thus, yesterday, on December 7th, the Bitcoin price has reached

$19,000 on GDAX. Even though the prices on this exchange have recently been unprecedentedly higher

than on the other exchanges, this seems to be a record, for now. Thereby, many people seemed to

move their capital from altcoins to Bitcoin, to catch up with the competition.
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While I am not sure about that - what I am sure about is interested in Bitcoin and Crypto

Currencies has skyrocketed. The fact that Bitcoin, as I'm writing this, remains around $2,700 and the

new Bitcoin Cash is rising (some have an expected valuation of 1 Bitcoin Cash = 0.5 Bitcoin or $1,300)

creating even more free money that you had when you woke up. (Tchir,2017.) The Bitcoin exchange

website is the internet medium that facilitates the exchange and trading of Bitcoin. Some Bitcoin

exchange companies also have the ability to store Bitcoin on their website.

For all these types of services, the Bitcoin exchange website charges users. Its main income

comes from the transaction and service charge. There is another resource for income. If someone wants

Bitcoin, the platform owners can lend Bitcoin for a specified period of time. The user has to return the

Bitcoin to the service charge. This is called a margin loan. In this way, providing the wallet options will

generate a lot of income for the business owners. In the current scenario, the Bitcoin mobile wallet

application is more popular. Users must charge the commission for withdrawing Bitcoin from the wallet.

The virtue of bitcoin is that once the payment is made it can't be reserved or traced. This allows

a transaction to be completely anonymous. This is why bitcoin remains a popular choice for illegal

transactions. It has its several downsides for an instance, if a bitcoin account is hacked then it will result

in draining the entire money; while in the banking system, there are more breaks and checks as

accounts can be blocked or recovery can be negotiated (Nakamoto,2008).

To sum up, trading bitcoin becoming more and more popular every day, besides it is much

easier to buy bitcoin than earlier. The internet medium facilitates the transfer and trading of Bitcoin

thus, some Bitcoin exchange companies can store bitcoins on their websites and accumulate great

amounts of this currency to become rich. However, a negative point is that the owners of bitcoin can

remain anonymous and these people cantake advantage of doing illegal transactions.
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References:

(Jul. 2018). Bitcoin. Britannica. Retrieved from www.britannica.com/topic/Bitcoin

Lewis, Nathan. "Gold Or Bitcoin? Gold And Bitcoin." Forbes, Jun. 2017,

https://www.forbes.com/sites/nathanlewis/2017/06/30/gold-or-bitcoin-gold-and-bitcoin/.

Accessed 13 Jan. 2021.

Tchir, Peter. "Bitcoin Is Going Mainstream." Forbes, Aug. 2017,

https://www.forbes.com/sites/petertchir/2017/08/02/bitcoin-is-going-mainstream/. Accessed

13 Jan. 2021

Azmaan Onies, Giancarlo Daniele, Tunmise Olayinka. (2011). Bitcoin Decentralized, Peer-

to-peer, Cryptocurrency. Retrieved from standford :

http://cs.stanford.edu/people/eroberts/cs181/projects/2010-

11/DigitalCurrencies/technology/index.html

Nakamoto, S. (2008). Bitcoin: A peer-to-peer electronic cash system

Legar, Donna L. “Hackers ramp up computer attacks that demand 'ransom'” USA Today,

N.p. Web. 5 Mar. 2015 <http://sks.sirs.com>.

McClatchy Washington DC News Bureau. N.p. 11 Aug. 2014. Web. 5 Mar. 2015

<http://sks.sirs.com>.+