Bitcoin usage shows how digital medium can be a double edged sword

Technology is a double edged sword. If used wisely, it can may life beautiful and if used for destructive purposes, things can get really tough. The age of credit or debit cards, online fund transfers may soon come to end with the world steadily moving towards a more digital alternative Bitcoin. What has now raised a question mark on this progress is that it has surfaced as the preferred currency of Wannacry cyber attackers. This development has negatively impacted the rising spiral of this new-age digital wonder.

In a nutshell, Bitcoin a form of currency which does not involve any form of banking and allows users to spend money in an anonymous manner. It means that goods and services of any form can be purchased using this digital medium. Even though a Bitcoin transaction can be traced, the owner cannot be tracked. Popular estimates indicate that Bitcoin is worth more than an ounce of gold, at the moment. According to media reports, the top three crypto currencies — Bitcoin, ethereum and ripple — have a combined 80 per cent share in total market cap. Japan has officially recognised Bitcoin and other crypto currencies. In fact, the finance ministry here has issued a discussion paper on whether such currencies should be regulated by the government or there should be self-regulation.”

Bitcoin works on a simple algorithmic formula. The coins are created by users who ‘mine’ them by lending computing power to verify other users’ transactions. They receive Bitcoins in exchange. The coins also can be bought and sold on exchanges with U.S. dollars and other currencies. Media reports state, “A network of tech-savvy users called miners keep the system honest by pouring their computing power into a blockchain, a global running tally of every Bitcoin transaction. The blockchain prevents rogues from spending the same Bitcoin twice, and the miners are rewarded for their efforts by being gifted with the occasional Bitcoin. As long as miners keep the blockchain secure, counterfeiting shouldn’t be an issue.”

Regardless, the recent malware attacks which crippled a large part of the world, used Bitcoin to collect ransom. While some businesses have taken the Bitcoin route rather seriously, there are an alarming number of criminals worldwide who are using this digital currency to ensure they meet their desired ends. In such a scenario, we present the positive and negative aspects of the Bitcoin technology which will help make up your mind about it.

POSITIVES

  • No third party intervention.
  • You don’t have to reveal your identity; Only money spent by you matters.
  • The transactional fees is very low.
  • No extra taxes have to be paid.

NEGATIVES

  • Bitcoin exchanges are not regulated, which means who are headed for trouble.
  • There is no formal complaint redressal in this system, if you are defrauded.
  • Your security is heavily compromised.
  • This is the currency of choice for the cyber attackers those have disabled the computers recently worldwide.

Leave a Reply

Your email address will not be published. Required fields are marked *