Bitcoin: The Use of the Digital Money - Special Academic Support

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Introduction

Bitcoin is an online version of cash and can be used to purchase products and services from retailers and merchants who accept them. There are several ways of using bitcoins, and the variety of options makes it favorable to many. Bitcoin provides peer-to-peer transactions and encourages society to appreciate the role of technology in enabling paperless transactions. It is a form of cryptocurrency whose popularity keeps growing as people gradually learn about and embrace it. This essay elaborates on how Bitcoin is used, its features, and its impacts on society and culture.

Features, Purposes, and Users of Bitcoins

Features of Bitcoins

Technology offers tools that boost the development and change of information, and Bitcoin is one of the products of technology. It is a virtual form of money that can be used in transactions when people purchase commodities hence complementing traditional methods such as gold. Kyriazis says that Bitcoin is an efficient hedge against oil and stock-market indices (88). Bitcoins are associated with durability, portability, divisibility, scarcity, and acceptability. They are valuable due to their tangible features; moreover, people cannot copy them because their network properties go beyond pure programming.

Purposes of Bitcoins

The purpose of inventing bitcoins was to provide a way for people to send money over the Internet. The currency was to offer an alternative payment system that would be used like other traditional currencies but operate without central control. Bitcoin is open to use by anyone, and the fact that it does not demand central authority makes it efficient. Currently, digital currency is being used worldwide in states and countries where it is legalized. Business people use it during transactions, while employers use it to pay their employees. The use of Bitcoin so far indicates that the purpose for which it was invented has been achieved, and its continuous use proves that the invention was valid.

Audience Served by Bitcoins

Bitcoins serve thousands of people globally, and many companies have embraced the currency, especially those keen on technology. Companies like Wikipedia, Microsoft, Overstock, and KFC accept digital currency as payment. Other small and medium-sized enterprises (SMEs) such as Bitcoin. Travel, Travala, Zynga, and PizzaForCoins have got this payment method. These companies and SMEs have embraced technology in their businesses, such as online bookings and ordering. Therefore, assuming payment through bitcoins quenches their thirst for integrating technology into their business. These companies and SMEs have embraced technology in their businesses, such as online bookings and ordering. Therefore, assuming payment through bitcoins quenches their thirst for integrating technology into their business.

These companies and SMEs use digital currency in their daily transactions, including international ones. The money is transferred directly to the employee, who can access it without queuing in banks or waiting for checks to mature. Hsieh et al. say that bitcoins represent the implementation of a decentralized autonomous organization where tasks are powered by a software protocol instead of being governed by managers (7). Organizations are moving to a system where people are more concerned about duties at hand other than managing and being in control which makes Bitcoin more desirable. The currency is accepted in the US and UK, which is an advantage to businesses that use it in these countries. Other countries that have accepted bitcoins as a payment method are Ukraine, China, Canada, and Germany, among others, and this currency eases their international transactions.

How Bitcoins Shape the Society

Bitcoins are highly appreciated as a means of payment, especially by people who love technology and those without bank accounts. All that is required by someone who desires to use a bitcoin is a smartphone and an internet connection. The user has to join a Bitcoin network, eliminating the need for financial institutions such as banks. The ease of access facilitates a seamless flow of capital across borders which drives growth and development worldwide. Digital currency is used virtually; therefore, it is a great way of embracing technology and displaying its benefits to the world.

Bitcoins are a product of the successful invention of technology and hence an achievement in the digital world. They have pushed the shift to a cashless global economy. Blockchain technology is a platform that supports many innovations, and it led to the success of bitcoins. Blockchain technology is open-source software where innovators build projects, products, and services that benefit society. Universally, technology is recognized as one factor that stimulates growth and connections to different people. Bitcoins are a product of technology that connects people and develops economies worldwide.

Moreover, digital currency is highly unregulated, which is one of its greatest strengths. The lack of regulation makes it unlimited regarding who can use it and when increasing its potential market. Many people can access it without fear of rules and breaking laws. Increased autonomy and substantial returns on investment make the currency desirable. However, bitcoin can be at risk of fraud, and to avoid this, Morton says that blockchain technology has to conform to its anonymity and adhere to data security regulations. Therefore, Bitcoin has inspired a digital market revolution and rapidly transformed various aspects of the economy.

In reality, bitcoin appears to be complicated, especially for people who do not value the impact of technology in society. Bitcoins require deep knowledge and understanding before people decide to invest in them, and studying this digital currency makes people shy away from embracing money. At the same time, some countries such as Qatar, Algeria, Nepal, and Iraq have banned the currency from us in their country. Bitcoins have a major environmental impact that can cause adverse changes in climate that affect society.

Impact of Bitcoins on the Society

Bitcoin has affected the economy and societal norms as a whole. The economy feels the positive side of having bitcoins as a mode of transaction as it is easy to access. According to Badea & Mungiu-Pupazan, despite the high energy consumption and adverse environmental effects, bitcoin is used in the economic environment for various purposes (48097). The economic advantages of digital currency make it acceptable in several countries where major inventions happen, such as China and the US. Bitcoins are easily accessible and eliminate the hustle of owning bank accounts. Bitcoins have therefore created a culture of embracing technology in a society where economic development is essential.

Furthermore, bitcoins involve high risks, and therefore there is potential for high rewards. However, bitcoins require much time and effort before an individual understands them, as they are highly volatile, making them risky due to their instability and unpredictable fluctuations. The currency is only building its popularity now; therefore, it cannot be relied on as a long-term investment, which increases the risk of using it, considering that people can use the history of other payment methods to predict their stability. Mining of bitcoins involves the emission of greenhouse gases and air pollution caused by coal-fired electricity generation. Generally, bitcoins are yet to be accepted in many countries due to their environmental impact on society during mining.

Conclusion

The essay has elaborated Bitcoin is used, its features, and its impacts on society. The digital currency has features similar to other currencies, such as durability and accessibility. Bitcoins serve many people globally and have boosted the economy and use of technology in business. Virtual currency, however, has some negative characteristics, such as difficulty in learning and the emission of greenhouse gases. Society should encourage the embracement of Bitcoin as a method of cashless payment as it aims to reduce its environmental impact.

Works Cited

Badea, Liana, and Mariana Claudia Mungiu-Pupazan. The Economic and Environmental Impact of Bitcoin. IEEE Access, vol. 9, 2021, pp. 4809148104., Web.

Hsieh, Ying-Ying, et al. Bitcoin and the Rise of Decentralized Autonomous Organizations. Journal of Organization Design, vol. 7, no. 1, 2018, Web.

Kyriazis, Nikolaos A. Is Bitcoin Similar to Gold? an Integrated Overview of Empirical Findings. Journal of Risk and Financial Management, vol. 13, no. 5, 2020, p. 88., Web.

Morton, D. Towne. The future of cryptocurrency: An unregulated instrument in an increasingly regulated global economy. Loy. U. Chi. Intl L. Rev. 16, 2020, p. 129., Web.

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