What is Bitcoin?


I received an email today offering me a get rich scheme which instantly made me suspicious. So be aware that the company “bitcoincode”  which appears to be a scam but you have scroll down many positive advertisements by them to get to the truth!  But Bitcoin is different to this and is gaining popularity and so what I want to do in this article is explain what it is  and what it is about.

What is Bitcoin?

“Bitcoin is a virtual currency which started in 2009 by unknown computer whizz using an alias called Satoshi Nakamoto”.

This information was taken from the Sun so I think I need a more reputable paper!!

CNN says this:-

“transactions are made with no middle men – meaning, no banks! There are no transaction fees and no need to give your real name. More merchants are beginning to accept them: You can buy webhosting services, pizza or even manicures.”

I think the main worry is this is working outside of the taxation system an therefore completely  not monitored at the moment.

Why Bitcoins? ( from CNN)

“Bitcoins can be used to buy merchandise anonymously. In addition, international payments are easy and cheap because bitcoins are not tied to any country or subject to regulation. Small businesses may like them because there are no credit card fees. Some people just buy bitcoins as an investment, hoping that they’ll go up in value.”

At the moment this system is under the radar but this last quote shows how useful it might be to worldwide trading companies. But who is in control? How can it be corrupted ( like our Bitcoincode  fraudsters)?

Who is in control?

No one! At the moment but that could change in the future

According to CNN:-

“No one knows what will become of bitcoin. It is mostly unregulated, but that could change. Governments are concerned about taxation and their lack of control over the currency.”

Anonymity

This is it’s most worrying aspect as far as I can see – no accountability  and CNN have this to say about it:-

“Though each bitcoin transaction is recorded in a public log, names of buyers and sellers are never revealed – only their wallet IDs. While that keeps bitcoin users’ transactions private, it also lets them buy or sell anything without easily tracing it back to them. That’s why it has become the currency of choice for people online buying drugs or other illicit activities.”

In conclusion

Governments will have to act! Especially where wrong doing is occurring. I would be very wary now of getting involved in this system until there  is some regulation put in place that protects the users. No doubt it does have its benefits – mainly an international cross – border currency but not one to invest my life savings in and certainly not one to invest in a get rich quick scheme!

 

 

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