Bitcoins: Boon or a bane for individuals and global economies?

Bitcoins have been generating more heat than molten lava since its inception back in the year 2008. The reason for the rising storm happens to be its legality which some are totally okay with and some are just clawing and pushing it away from their system. Now one may ask, what exactly could be the problem and the fuss all about? The answer to that is pretty simple. It isn’t simple at all. Before dwelling more into the subject, let’s get a brief of what bitcoins are and why is it such a subject of talk among the public and nations worldwide?

What’s a bitcoin?

Bitcoins in simple layman terms is digital money that can be used to do a wide variety of things like shopping, money transfers and much more. To simplify this even more, Bitcoin is a digital equivalent of cash and does not involve the use of any mediums or third parties like banks or financial institutions. You cut out the middlemen by using bitcoins as a medium of payment.

So it’s digital money. What’s irking everybody up then?

It isn’t that simple my friend. A bitcoin transaction does not involve any third party which means banks cannot charge you a transaction fee for your transactions which makes it a boon really for people who want to avoid the red tape when it involves to making money transfers or just shopping. There is no physical bitcoin currency as such. It is present as digital money.

The cause of concern with a mode of money like this is that it’s unregulated which means that there is no central authority figure issuing this. There isn’t a need to share any personal information to open a bitcoin account which means that any transfers made via this system can’t be lead or linked back to anyone. This means that virtually anyone can use this to their advantage may it be a drug peddler or a dirty man with pockets deep with black money making bitcoin an official cause of concern for authorities around the world.

Whatever, Can I use this?

The answer is yes, anybody can use this but there are restrictions in place regarding its legality. Most economies around the world have rejected and banned bitcoins fearing it may lead to flouting of rules for nefarious means. Many countries like Australia, Canada, the Netherlands and the US are bitcoin friendly and haven’t imposed any sanctions on bitcoins. Many companies like Dell, Dish Network have welcomed the use of bitcoins as a payment method. That being said other major companies of the world like China, Russia and India has imposed a ban of on the use of bitcoins.

How is the future for bitcoin then?

Bitcoins are volatile in nature and involve certain risks. Adding to the fact it’s not so friendly approach with other economies around the world. It is somewhat of a gamble but hey, you never know how the future changes. Recently, JPMorgan Chase filed a patent for a bitcoin like payment system. Fathom that?