Since the late 2000's, Bitcoin has been growing exponentially at a very fast rate, making some very rich, and some very regretful for not buying in sooner. In the later weeks of 2024, Bitcoin exploded past its previous peak price setting a new record of around 103,000$ per Bitcoin. Many believe that Bitcoin and crypto currencies similar to it will eventually replace the dollar as we know it, but many are still asking, what is Bitcoin? Bitcoin is defined as "A type of digital currency in which a record of transactions is maintained and new units of currency are generated by the computational solution of mathematical problems, and which operates independently of a central bank." To make it simpler, Bitcoin represents transactions between people which add blocks to the "block-chain", it's in this process which new units of currency are generated and rewarded by solving complex math problems, this value of this currency is enforced by the hard cap of 21 million Bitcoin, 1 million of which has yet to be mined.
What is Bitcoin mining? Bitcoin can be "mined" by using a machine known as a miner, these miners will often have 3 circuit boards called "hash boards", that decrypt complex equations and codes and translate them into Bitcoin, the rate at which this is accomplished is called the "hash-rate". Various companies will gather thousands of miners into large facilities, mining 1-2 Bitcoins per day. One company for example is Simple Mining, headquartered in Cedar Falls with smaller sites in Harlan, Shelby, lake Mills, and Algona.
How Bitcoin benefits energy. Bitcoin mining is powered almost entirely by clean, natural energy. Mining Bitcoin has a massive energy cost and the use of clean energy benefits it greatly, Bitcoin mining also uses its waste heat for other purposes, lessening its impact on global warming, Bitcoin mining also uses methane emissions from landfills to help power the miners, keeping it out of the environment.
How could Bitcoin replace the dollar? Many believe the modern dollar as we know it could be soon replaced by cryptocurrencies like Bitcoin, the argument for this switch includes the clear security of Bitcoin, being nearly impossible to breach. The easily transferable nature of Bitcoin makes transactions much simpler than cash. Another argument for Bitcoin is its detachment from a central bank, giving users complete freedom over their money. Finally, the hard limit of 21 million Bitcoin makes inflation much less likely than with cash, which can be printed and inflated at whichever rate the government would like.
In conclusion, I believe Bitcoin and cryptocurrency are the future, and it's getting hard to deny, the easy-to-use system, security, and eliminated risk of inflation, Bitcoin is a clear benefit to society and it's not going away anytime soon. Do you think Bitcoin can replace the dollar? Do you think Bitcoin is good or bad, why?
Replies
Heck Yeah Bama!
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