Over the past few weeks, investors have been large group to Bitcoin, The digital currency whose value has raised high in the air by about 2,000 percent in the past year alone. And while many economists are cautioning against excitement about Bitcoin. This is caught up in what may be one of the biggest speculative bubbles in history. It’s important to note just how revolutionary the technology may be. Indeed, the technology underlying Bitcoin could fundamentally change the way we think of money. It is only a matter of time before paper money is phased out. In few years in this rate.
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Bitcoin and other crypto currencies are based on a complicated technology known as block chain, This acts like a digital ledger of all transactions completed with the currency. It’s somewhat similar to the serial number that you can find on every currency note, But it actually means something because it makes Bitcoin nearly impossible to counterfeit. The exploding value of Bitcoin has many observers predicting the launch of a U.S.-backed digital crypto currency, Colloquially known as Fedcoin. And there are many reasons beyond fighting counterfeiting to switch to a digital dollar. Cash has the distinct advantage of being anonymous. You can put cash under your mattress or in a vault, And no one knows about it except you. A national crypto currency would make it far more difficult for criminals, To board money because all transactions would be recorded in the government ledger. If a transaction was deemed illegal, The parties to the transaction could be identified. This is also true with Bitcoin, whose ledger is viewable to anyone. Despite the negative press about Bitcoin being used for illegal transactions, Bitcoin is not anonymous, And criminals who use it often do not understand that their transactions are being recorded. We want crypto currencies to stay completely independent, and we definitely do not want the Federal Reserve and other global central banks to start creating their own versions. Because of course once they create their own versions they will want to start restricting the use of any competitors. The one thing that could derail the crypto currency revolution faster than anything else would be interference by national governments or global central banks.
Unfortunately, now that #Bitcoin, #Litecoin, #Ethereum and other crypto currencies are getting so much attention, it is inevitable that the powers that be will make a move.
Unfortunately, it inevitable that it is “only a matter of time before paper money is phased out”, and that some version of “Fedcoin” would release. By all center bank in future
Bitcoin is big for now. But if Fedcoin is comes in race which is bigger let see Over the past few weeks, investors have been large group to Bitcoin, The digital currency whose value has raised high in the air by about 2,000 percent in the past year alone.