The power of the state breaks the more that people use bitcoin. As of recent, 10.71 million bitcoins are in existence. That is worth 207.929 million United States Dollars. The bitcoin factor may be hard to embrace and difficult to fathom, but this encrypted currency represents a type of Snowden or Guy Faux revolution that makes it appealing.
Bitcoin is a virtual or digital currency. This means no notes or coins. Initially, the idea had been a curiousity amongst the technology groups. The one person who had actually created it was Satoshi Nakamoto. This person resided in total anonymity, and some believed he got his name from Samsung, Toshiba, Nakamichi, and Motorola. It was said he was from Japan, but bitcoin is not available in Japanese, and his mail ID was from Germany. Once bitcoin was designed in 2009, Nakamoto disappeared in 2010.
Here are some popular features about bitcoin that breaks the power of the state. Bitcoin cannot be backed by government or any other commodity. It has no central banking server so the central authority has no control over the money supply. This type of currency is untraceable because it does not require someones personal information such as names, addresses, or phone numbers. The bitcoin software prevents tracking IP addresses. Any transaction made only shows the transaction ID. Anyone can remain anonymous. Money transactions made will be unknown to authority or organizations. It cannot be taxed. It cannot be confiscated because it is in files that can be copied and hidden in USB keys or unknown servers. The nature of bitcoin is peer to peer transactions. Even if the governments want to stop it, it would be impossible because they would have to shut down the web.
The digital wallet for someone’s bitcoin remains on the computer or website online. There are three ways someone can get bitcoins. The first is “mining,” which is the process of extracting through computer processing power and electricity. The second is currency exchange by purchasing the bitcoin with the American dollars. The third is providing services in exchange for bitcoin.
People are searching for an area to store value. Silver and gold, yet extremely valuable, they can be a bit problematic because they are hard to move and the value is continually being manipulated. It is much easier to transact with, easier to secure ones wealth, and it is lighter than gold. The value just last year had an incredible increase because of interests from retailers and investors.
The government authorities realize bitcoin breaks the power of the state are afraid that this flexible currency could be used to facilitate illegal activities such as illegal products in trade and out of the law enforcements view. The Senate hearings are likely to inspect the reactions of regulators concerning this type of payment. Also, digital money can avoid the collection of taxes. Some people believe that the government will take it down because the Federal Reserve and the United States dollar influenced the American people in a way to put the government in total control. Others believe that the government may take advantage of this new currency and let bitcoin run its course so they can collect all of the silver and gold while the people are more interested in bitcoin.
By Brittany Varner-Miller