Small Note to Reader: Ignorance should no longer be bliss in our society. For those of you coming from my facebook account you know my reasoning for those of you coming on your own - health means mind and body wellness, staying informed is the equivalent of having a healthy mind. Thank you for your time.
Going back to the start, bitcoins are strings of computer code that are considered special, since they are sequences of code extremely difficult to create.
But why do we feel that a new currency is necessary and how can we trust such a foreign idea? As with everything new, the average human being that isn't a tech genius questions if it is legit, how it grows in value and for how long it will be around?
Bitcon is valued since it is a series of solutions to an extremely complex math problem. Bitcoins operate based on an algorithm according to the Guardian and no more that 21 million coins can ever exist.
Creating a new currency is definetly not a simple matter as it requires for people to be taught a whole new system of exchange. Perhaps the timing is wrong considering there are certain countries in Europe suffering from a year-long economic crisis, while countries in latin America are struggling with trade and in general there is a global financial upheaval. In general the bitcoin market is highly volatile, even more than stock exchanges. Nonetheless, venture capitalists seem to have faith as more than 10 million has been invested on bitcoin startups.
Technology is indeed taking over in every aspect and by creating a virtual currency it inavoidably leads to challenging political structures and underpinning opposing ideologies that could potentially deem toxic for the global economy, especially at such a fragile state. Thus, it could be regarded by some as unnecessary and by others the next big thing but at the end of the day what is drawing all the attention are competitiors.
On another note, transactions are an everyday reality for many bankers, financial managers and of course people outside the economic sector who hesitate to trust existing currencies let alone virtual ones. Currencies like the bitcoin have been used however, in the past to boost trade. An example is the Freicoin in Switzerland which gave people a disincentive to save due to its rapid devaluation. It seems that when in a time that decade-long currencies cannot be trusted how can a new virtual currency simply enter one's life so easily. Hopefully, Bitcoin won't be used as a "bounce back" currency to the suffering euro, the growing dollar and the maintained pound.
While reading the corresponding article of the "Bitcoin Rival" in the New York times it came to mind that ideas only enter the minds of the people when competitors make an appearance. This signals right away that the idea is worth pursuing from another party as one fears that it could be a success for the opposing party.
Regarding our concerns, we are not for or against the currency we just hope if it enters our pressured everyday reality, it will do so, in a way that it won't violate our transaction rules and hopefully without collateral damage when it comes to finacial losses, failed transactions and risky investments. We do agree however with the Huffington Post and the Guardian that it is a perplexing yet interesting experiment to test digital boundaries and perhaps expand the financial power base in the future. It is only normal to be hesitiant however, to a currency based on faith for now. But the civil war in the digital financial world will continue until a currency is deemed legit by the world economy to enter the global markets and not just settle on night clubs.