Saturday, 7 March 2015

What is Bitcoin and how can it influence economy ?

Bitcoin is a form of digital currency, created and held electronically. No one controls it. Bitcoins aren’t printed, like dollars or euros – they’re produced by lots of people running computers all around the world, using software that solves mathematical problems.
The Guardian  criticizes the Bitcoin by underlining that the electronic currency has some threatening aspects.
Indeed, the Bitcoin is describe as the Mortgage system which made Lehman Brothers collapsed and led to the international financial crisis. Moreover it could be a threat for the employment as the Bitcoin Removes liquid assets from traditional trading resources used to employ populations.
 
Therefore, speculators find an easy way to launder illicit funds which cannot be under the control of the government.
Finally, Paul Krugman states that even if Bitcoin can make people rich, it has a real negative cost for the economy and declares that it is not why a legitimate monetary system is made for.          
 
The point of view of Ben Bernanke, president of the FED, who addressed a letter to American Congress contains more positive points of view that Bitcoin and other virtual currencies may hold long-term promise.
Indeed, FED’s president highlights the fact that Bitcoin is faster, more secure and more efficient than other payment’s system. Moreover, he thinks people can get rich quick with little input or effort which is very important for most of them.  It could also reduce administration costs (it’s a very strong argument because it permit to economize money and time, both on the side of customers and banks), and permits the Federal Reserve to plan to work with other financial agencies for banking organisations.
Both articles are engaged concerning Bitcoin and digital currency. First we can remark that the Guardian’s article has a negative view, with many arguments like the lack of regulation or the increasing facility for laundering illicit funds. Ben Bernanke and his letter to Congress (which contain positives arguments) seems more optimistic for the development of Bitcoin and digital currency.   
 
References :
 

                                           

 
 
 
 

No comments:

Post a Comment