The Bitcoin Phenomenon

The Bitcoin Phenomenon

Have you heard of Bitcoins? Essentially, bitcoins are a form of digital currency that can be sent directly to anyone in the world without having to go through a financial institution. This eliminates the large fees that banks charge for every transaction. This is also appealing to small businesses. By using bitcoins, small business owners don’t have the pay the 3% fee for every credit card transaction since bitcoin services usually charge less than 1%.

Some are calling it the currency of the future, while others are more cautious. The value of bitcoins is very volatile since it depends solely on people’s faith in it.


Because bitcoins operate in a peer-to-peer fashion, there isn’t a centralized bank or authority. Naturally, this has made the federal government nervous and its began its scrutiny of the system.

I don’t have any bitcoins myself, but I find it this topic very interesting and just wanted to start a discussion. Have you used bitcoins yourself?

Further reading:

-Homeless, Unemployed and Surviving on Bitcoins (Wired)

-More Small Businesses Embrace Bitcoins (Wall Street Journal)
-Goodbye Switzerland, Hello Bitcoins (Forbes)


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