Tuesday, December 31, 2013

Bitcoin depends on users' criteria


Bitcoin is a system designed for transferring money between individuals and businesses.
Being a digital payment system, it is also a revolutionary cryptocurrency because it runs on the Blockchain Technology. It is organized as a peer-to-peer or P2P payment network, and functions as a digital currency which uses an open source protocol. 

In this system there are no transaction fees, all transactions are completed within minutes, the system is also decentralized, in the sense that no one person owns the blockchain network, and most importantly, it cannot be manipulated or hacked because of the basic structure of a blockchain.  

Whether bitcoin is good or bad, it is up to users, and there is some truth to each option, depending on what they intend to do with it.

In reference to the way it works, bitcoin.org indicates that users do not have to understand the technical details of it. “How are you going to get bitcoins?” asks and responds Richard Stallman in a recent interview with RT. “If you are an ordinary person, the way you could do it is by paying with a credit card to a company that will exchange government currency for bitcoins. The credit card identifies you, so when you get bitcoins in return, the government can see who you are.”

The idea of having a different alternative to the traditional
currency standards in use today for money transactions is not so bad, especially if you want to avoid paying high commissions typically associated with bank cards. However, Stallman has stated that unfortunately this system lacks appropriate privacy, indicating that bitcoin is not anonymous by design. As we know these days with all the bad news about internet fraud, securing internet transactions should be the first priority for anyone intending to engage in online money dealings.

Stallman also pointed out that, unfortunately, tax evasion and money laundering are among some of the controversial reasons why certain unscrupulous people operating internet platforms might be interested in using this system with the intention of not being identified. 

So, if you are looking for a way to engage in online money transactions, that is cheaper and faster than regular bank cards, credit cards or online payment services, this is a viable and rather flexible option, unless you have other ideas. Mr. Stallman, nonetheless, in that interview is addressing issues that have a lot to do with common sense from users, and with the fact that we are living times when surfing the net without taking necessary precautions is a very risky business.

Copyright Esteban Dobronsky 2013 © All Rights Reserved

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