Bitcoin Currency: A Positive Step Toward Monetary Evolution
January 12, 2012
Bitcoin has already shocked both the establishment and the blogosphere. A privately controlled currency, completely independent from government or banking, Bitcoin leads the way in many respects toward a better currency. But it may be ultimately flawed as it was built on false premises and does not address the key issue of interest.
Bitcoin was developed by Satoshi Nakamoto and launched in January 2009. There are currently more than 8 million Bitcoins in circulation and they trade at a rate of about 5 euro.
Bitcoin basically is a debt free unit: it comes into circulation through ‘mining’ by solving complex algorithms which yields clients new Bitcoins. However, no more than 21 million can be mined, so there will never be more than that in circulation.
Bitcoin is important and actually nothing short of revolutionary. It is the first notable independent internet currency. Already many cyber units are in existence, but they are related to certain communities. For instance, there’s Linden Dollars used in the virtual world of Second Life and World of Warcraft also has it’s own tokens, available to millions of gamers.
But Bitcoin is a fully fledged currency, designed to finance real trade.