A BRIEF GUIDE OF BITCOIN AND ITS IMPACT ON CAPITALISM
Recently, the cryptocurrency Bitcoin was being declared as the future of the monetary system and even the future of capitalism. The decentralized characteristics of Bitcoin have been imposing a great deal of threat to the system. As the world is progressing, so is the digital currency Bitcoin with its advantages and disadvantages. Bitcoin is a fascinating invention that exemplifies “distributed capitalism”.
1. THE EVOLUTION OF CURRENCY
The various forms of money from the barter system to date are an important financial tool that runs the economy of society.
- Through historical data, it is revealed that money was first established as a unit to compute debt and then receive more functions accordingly.
- An increasing number of economists are concerned about the widening gap between the actual economy and its commercial peer.
- According to the theory of Perezon, “techno-economic paradigm”, today we are at the evolving point of the present ICT-driven paradigm. New monetary tools have been introduced that generate more credit instead of fueling the original economy.
2. A BASIC GUIDE ABOUT BITCOIN
Bitcoin is a digital form of currency originally introduced in the year 2009.
- Bitcoin is not controlled by the central authority or any government bodies. Hence it is completely decentralized. It also records all the transactions taking place in a distributed report called Blockchain technology.
- The miners of Bitcoin solve complex mathematical problems and compete against each other to confirm groups of transactions known as blocks. On succeeding to solve the problem, they are rewarded bitcoins.
- In the current scenario, Bitcoin is commonly used among investors as a mode of payment in every corner of the world. The coins are stockpiled in a virtual wallet or digital wallet of the Bitcoin holder.
- Being decentralized, the cost of transaction is minimum and sometimes even close to zero.
- However, it must be kept in mind that with the said advantages, there are some disadvantages as well. The price of Bitcoin in the digital market always keeps fluctuating. Therefore, trading Bitcoin can be a risky job for beginners. Apps are available in the market that can help beginners providing them with some guidance, to know about such apps click here to visit popular software for further details.
3. A GENERAL GUIDE TO CAPITALISM
- Capitalism is a system of economic construction whereby the people owning a business acquire the manner of production or capital and employ laborers to work for the system.
- While capitalism has improved to innovate and bring prosperity in modern society, it can also give rise to great inequalities and major failures in the market.
- Capitalists are free to make their own decisions in the market and there is no organization to defer their decisions.
4. EFFECT OF CAPITALISM
- It perpetuates poverty – several nations enter into the competition to build the best situation for a multinational company. These nations offer lower wages than other nations contesting for investment, tax breaks.
- Inequalities – the capitalists get richer and nepotism is highly prevailing in such industries.
- Corruption – the conditions mentioned above further give rise to corruption and lack of transparency in society.
- Cronyism – the government assists in the capitalist class as this is beneficial for both the state and the business class as well.
How can Bitcoin be a solution to such problems?
- Bitcoin allows anyone belonging from any kind of background to trade the digital currency and earn profit.
- The decentralized platform of Bitcoin makes it a fair platform where the voice of each individual is heard.
- With Bitcoin, the question of corruption is zero as only 21 million bitcoins were ever produced and circulated among the public, and due to this very reason, the chance of manufacturing a fake currency is impossible thus relief from fraud.
Bitcoin is still at its development phase and requires change but, with its proper implementation in society the ill practices of capitalism can be eradicated.