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 agree with your statement about how bitcoin will not take over the dollar anytime soon because it is way too powerful. Also all those people that have loads and loads of cash what are they going to do when they cant use it. All that money would just be wasted.
I agree becuase people can trust the dollar a lot more because as you said it has been around for so much longer. I also agree with your statement when you said that bitcoin is unstable, it is changing everyday.
I agree with you, when you said "I believe Bitcoin and cryptocurrency are the future". These types of currency have good chance to over take the dollar. However, I don't believe this will happen in the near future. Bitcoin is a good way for our economy can grow, but it could crash and cause many people to lose millions of dollars.
Bitcoin is a very good way for many people to make money nowadays. However, I dont believe it could replace the dollar in the near future. I feel like it will get too complicated to use a percentage of bitcoin in order to pay for things. However, it could replace the dollar in the distant future, but I don't believe it will for atleast the next 20 years.
Bitcoin being unable to be inflated could be seen as an advantage but it is mostly a disadvantage. Bitcoin has a fixed supply of 21 million coins and this means that its value can change a lot depending on demand. As the world economy gets bigger and the price of goods and services rises Bitcoin won't be able to adjust its supply like the dollar can.
Bitcoin is an interesting concept, but I don't think it will replace the dollar in the near future. Although it is not tied to central banks there are many security concerns like hacking. Also, the value of Bitcoin can change a lot which would make it an unreliable currency. Even though Bitcoin mining may benefit the environment the risks of making it our standard currency are too high
However, I do like the bitcoin helps the environment, because as we get older and climate change becomes more noticeable, we will eventually have to do something in order to control or at leat slow down the rates of greenhouse gas emissions. I find it very interesting that it uses methane emissions to power it and I wonder where these harmful gases go.
I believe that the inability of bitcoin to be inflated isn't neccesarily a good thing, because as prices of goods increases, the value of bitcoin will deplete. I also don't think that it will replace the dollar because as a crypto currency, there's alway a chance of hacking, and just this tiny chance would scare people off from using it.
I think that bitcoin mining is a very interesting topic. I think it is intriguing that is powered by clean and natural energy and the impact on global warming is lessened because the recources are used wisely.
I think that bitcoin doesn't have a high chance of replacing the dollar at the moment. Bitcoin is too unstable to overall replace cash and banks. Bitcoin is still a fairly new concept and needs to be perfected before there should even be thoughts about replacing the dollar.
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