Monday 10 Dec, 2018

Bit coins: end to traditional monetary system….?

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4709bit coi

Most of us would not have even heard about the “Bit Coins”. Then how it is possible to entangle the whole system inside which we are living now….? First of all, “Bit Coins” can be defined as digital currencies in the shortest of the terms. Interestingly, the currency will not have a definite physical figure. To add more, the flow of these coins are been controlled by an open source software program used by the computers in the “Peer to Peer technology”.

The “Bit Coins”, as said earlier is a virtual coin system with which users could conduct transactions over internet. The users can take part in this transaction system by downloading a software or to be precise a wallet (Digital Wallets). This can be obtained through MIT’s open source license for free. The users will be given a virtual address through the computer program. As we completes this process, we are next been thrown to the transaction area where the users could transact bit coins, which will be scrutinized by various other computer users.

The production of bit coins is another matter of discussion. As per the data available, these virtual coins are being produced through a process known as ‘Mining’. The process involves a complex functioning of computer hashing programs. So without stepping into this intricating processes, we could further check how a common man could avail bit coins. Like a typical stock exchange, we could convert our currency through agencies known as “Bit Coin exchanges”. A familiar name in this area is “Mt. Gox”. However, like the changing exchange rates, bit coin values too are subjected for changes.

It was Mr. Satoshi Nakamoto, who introduced the idea of “Bit Coins” to the world in 2008 through his research paper on the Cryptography mailing list. The idea though denied by experts at first started to pick momentum later. But, as the idea became a billion dollar industry later, the world is yet to find the man who is behind this entire mind wrecking ideas – Satoshi Nakamoto himself, who went into oblivion since then. As the wide spread speculation over the real identity of its creator is popping up, the “Bit Coins” has stretched its hands over millions of users online. 

Experts have different opinions over “Bit Coins” system, which according to one section could virtually change the whole monetary system of current times. But at the same time, another section opines that this would only be limited to online transaction. Somehow, both these section of experts predict that this new system has the potential to solve the fragilities prevalent in the current system and work according with it in future. What they found extremely well about “Bit Coins” is that, this could virtually abolish the middle – players who occupies the controlling seats over the online transaction, and pave way for small players to found their own space in the business.

The most fearsome feature of “Bit Coins” is that they don’t have a precise identity. Anybody could avail this system without much restrictions and at the same time use it to destroy some particular interests. The involvement of terrorism in this process is what meant by the above statement. Also the fastily changing values of “Bit Coins” add oil to the fire. However, the positive sides of bit coins could give some hopes as well. It is considered as a possible remedy for the everlasting problem of inflation. 

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