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
I could also see bitcoin being a bad thing for the future of our economy because if bitcoin does become the future base currency and it hard caps at 21 million, when we end up hitting that cap, how are people who have 0 BTC going to get money? if that 21 million BTC is owned by people around the world, how would you pay employees? how would people with nothing make money? You have to keep making currency for everyone or else there eventually won't be enough to go around.
I agree with you, I belive cash is superior purley due to the fact it can just be printed out. If bitcoin gets mined out there is basically no more economy if it replaced the dollar. Although I also disagree with the point you made of it being bad, I think it can do good if it is purley seen as a backup currency and nothing else, it is not going to harm anything if it is not the main currency we all are using.
One more reason why I could not see bitcoin replace common currency anytime soon is because of how much it flucuates in price, the common dollar doesn't one day become worth more than a dollar or less, that worth is based on the economy, the price of products change, not the currency itself, so in a way the dollar does change its value over time but not by changing its literal value, its by changing product prices, bitcoin is different from this because the price of the actual currency flucuates daily making transactions very difficult to track because one day you spent say 1 bitcoin on a car, then the next day you spent 1.5 on the same thing.
I could definitely see bitcoin replacing common currency in the future, but in the far future, I think that we are as of the present, years away from online currency completely replacing common currency. The world widely uses online transactions today, but there is still lots of in person transactions aswell, I think when we are at the point where the majority of the economy runs on online transactions, bitcoin will be a sufficient switch of currency. I see bitcoin as a good thing, as you said it limits inflation with the hard cap of how much can even exist, and I think it is a viable option too switch too in the future, also, having complete freedom over your money with just as many safeguards as a bank is something revolutionary, if bitcoin does replace common currency in the future, there will be no need for banks to even exist.
I strongly feel that bitcoin could not replace the dollar because it is money online and there are still many places that deal with cash. But as of today, more and more events are starting cards only. Maybe in the future when the world switches to mainly card or online payment there could be a way. It is a big risk though because there are many hackers and with the more and more computer smartness people are going to get better at hacking.
I agree with you, I see that is it possible but I think that cash and card will remain primary payment options. In my comment I didn't talk about hackers and how harmful that could be to a digital currency but I see now that if we did switch to online currency only it would be a matter of time before hackers could basically have the entire worlds economy.
I agree with you because you said "there are many hackers and with the more and more computer smartness people are going to get better at hacking." I belive that is a very valid point. I also agree with a lot of people still deal with cash, and they perfer that over card or online payments.
I do like the fact that bitcoin can help the environment. Its very interesting that it can take in methane emissions and its great that it can do that, It can help us get rid of those emissions so that it could help reduce global warming. Nowadays we can be able to start noticing the environment changing around us and with the bitcoin mining machines it can hopefully restore the environment back to normal.
I believe bitcoin can not replace the dollar anytime soon. People can trust the dollar a lot more because it has been around for so long. But bitcoin is unstable, one day it can be worth a lot and potentially the next day it can drop a lot. Although bitcoin is a interesting concept I don't think it would be able to help people rely on that to pay for things like groceries and bills.
I agree with you because a lot of people only do trust cash. You said bitcoin is unstable and I fully agree with you because anything could happen to it.
-
1
-
2
-
3
-
4
of 4 Next