Bitcoin, bitcent, mbit, ubit

Bitcoins might change the world – one bitcent at a time

It’s been a long time since I’ve covered alternative currencies, so I’m loving all the focus on Bitcoins (1 BTC = 1 bitcoin). What, you ask? A Bitcoin is a decentralized, anonymous, digital-only currency (cryptocurrency). For some online sites, its the only form of currency accepted.

All eyes seriously turned to Bitcoin in April of this year when its price soared rapidly. One of the many interesting aspects of this event is that the public’s trust in technology – over banks in this case – continues to grow and expand.

How/where do I get Bitcoins?

Here’s where it gets complicated. The Buying Bitcoin Wikipedia page is intense, the newbie page seems a little flimsy and questionable.

Bitcoin.org says you simply need to download free Bitcoin Wallet software to store your Bits. But you need to mine the Bits. Lifehacker makes those procedures seem easy.

Bitcoin’s future: Iffy.

Governments around the world are not thrilled with a decentralized currency, Power loss. New regulations must be in place. Control gone. Since there can only be a limited number of Bitcoins in existence at a given time, demand alone sets the currency’s value.

 Digital currency, alternative currency, technology-driven currency, societal mindshifts,

Who accepts Bitcoins?

Forbes has provided a Top 10 list that includes WordPress, Reddit and OKCupid.

Bitcoin’s popularity: Trending upward.

Unique value

  • No central authority to control price or flow
  • Highly secure
  • A fixed quantity
  • Little to no inflation
  • Impossible to counterfeit
  • Can’t be frozen or confiscated by any government or banks
  • Easy for online payments

Deficiencies/Risks

  • Anonymity may lead to increased fraud or illegal transactions
  • Volatile price, a high-risk asset
  • Your loss if you lose your Bitcoins, not replaceable
  • Most online retailers don’t accept them

Here’s a Bitcoin currency convertor. And here’s the ultimate Bitcoin FAQ.

The Bitcoin will either be a boom or a bust. A bit of time will tell. In the meantime, here’s a great TEDTalk from marketer Paul Kemp-Robertson who talks us through this new generation of currency.

One Response to “Bitcoin, bitcent, mbit, ubit”

  1. Belinha Says:

    Ideally the concept is to remove the mess that has been created with factional reserve banking. Right now so much power is in the hands of the central banks. This power gives them the ability to control the amount of currency that is in circulation. In essence money is created out of thin air with no weight to it like the gold standard created. Money is built on trust in the value of that currency, which is very scary. You can even see in recent times how this type of system has created massive problems and will only get worse as time goes on. The only way I personally feel that currency can be fixed since we left the gold standard is to create a new currency with a relative value unit assigned to it. The relative value can be tied to something tangible. To supply a certain good or service it requires certain resources. Those resources being natural, human and others. For example it takes a specific amount of resources to produce a car. Machines, equipment, people working on it, natural resources like metal, plastics and time. These factors can be used to produce a RV for that car. Unfortunately I think there is so much money in circulation, that it would be near impossible to go back to the gold standard as there may not be enough gold available in circulation to match out the currency to. Why not create a balance of the commons of ALL available tangible resources and not just gold? The concepts I like of BitCoin are the fact that there is no central authority for currency. What you produce is what you own. You actually own that currency that you have produced using your resources and it has value based on the fact that others had to go through the same create that currency as you did. The idea of using CPU cycles is very geeky and not sustainable. The idea though that you have this resource and by using that resource you are producing something that holds value amongst those doing the same type of work place the value and trust in that currency. So when you go to work based on your education, work experience, skills, time spend doing your job, the actual work being done and even the value your employer feels you are worth to them can all be used as factors. That value of currency that you produce has no value that is set by factional reserve banking and the amount of currency in circulation. It is based on a true tangible asset like the gold standard used to be. Just my two cents.

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