Calabio 1

RJ Calabio
Ms. Ingram
English Honors I
2 April 2015
Bitcoin Will Change How Money Works
Regret, shock, and desperation is all there is when the thought comes to mind that there is
7.5 million dollars begging to be spent on a hard drive that is now being crushed by garbage
disposal on the curb. This unfortunate realization came to James Howell too late, as he realized
that he threw away a hard drive with the only access to 7.5 million dollars. On this hard drive
was the key to his bitcoins: the currency that is going to mold the future of economics. Bitcoin is
a currency that is completely virtual and has no government backing. With no government
backing, can have a fluctuating value. Bitcoin should be a viable method of payment because
bitcoin is good for business, provides consumers with privacy and security, and it lets users of
the currency make money.
With virtual currencies, there is privacy and security. Bitcoin is impossible for someone
to hack into a corporations and steal personal information, if the corporation doesnt have the
personal information. Bitcoin is completely anonymous, meaning that is never required to give
any information about oneself to the seller. This anonymousness gives consumers privacy from
companies and security from anyone looking to steal information about someone else online.
Another security measure of bitcoin is its use of cryptography. Cryptography is the art of writing
or solving codes. Bitcoin integrates cryptography within its systems to make complicated codes
that cant be hacked. The cryptography that bitcoin uses prevents money from being stolen and
provides security for the consumer. Bitcoin also offers more security because of how the system

Calabio 2
is built. Bitcoin is a decentralized currency, meaning that it isnt based in just one location.
Bitcoin is spread across a network of systems more powerful than the worlds fastest
supercomputer. This makes bitcoin nearly impossible to control by one single corporation. The
reason that bitcoin cant be controlled by one single corporation is because they would have to
own every computer in the bitcoins network of computers to modify any information. So if
bitcoin is not controlled by one corporation. That means that money cannot be taken by banks or
companies that want to shut down someones account. The fact that bitcoins cannot be taken by a
third party give it an extra layer of security. It can now be seen that bitcoin provides privacy and
security through anonymousness with companies, the systems security, and how balance of
everyones bitcoins cannot be modified by a third party. Bitcoin provides privacy and security,
but it also really good for businesses.
The fact that bitcoin is good for business is another reason why bitcoin should be a
method of payment. Bitcoin is good for business because it lowers the amount of fees on
transactions. When transactions with a credit card are made, the transaction goes through a
variety of deductions like credit card, government, and other fees. With bitcoin though, there are
no fees issued by companies or other third parties. This means that because bitcoin has less fees.
Though it may not seem like a lot, that several percent can be a lot for a multi-billion dollar
business. Therefore, bitcoin is good for business and the customer too by saving both of them
money through less fees. Another reason for bitcoin being good for business is that it can be used
worldwide. The reason for this being possible is because someone using a foreign currency
would normally have to convert to dollars to pay for things in the United States. This process is
skipped with bitcoins because the same it is a currency used worldwide and the value is the same
everywhere. Bitcoin helps businesses by opening up a new global market for them because the

Calabio 3
currency is the same everywhere. Finally, bitcoin helps businesses by making faster transactions.
The reason that faster transactions can be made is because there are less fees. When something
like a credit card is used, the transaction has to go through multiple places to deduct all the fees.
Bitcoin is a lot faster in comparison because it does not have all those fees to deduct. There is
also no longer a need to sign anything like what would happen with a credit card. The code can
just be scanned and the transaction is done. This is good for businesses because it allows
businesses to get to more customers a lot faster. Not only is bitcoin just good for businesses, it
can help anyone make money.
Money can be made off of its fluctuating value. There is the argument that bitcoin is bad
because its value is volatile due to a lack of government backing. The fluctuating value is not a
terrible thing. Bitcoin can be treated like stocks; traded for at low price and traded again at a
higher price. This shows that money can be made off of bitcoins changing value by trading
bitcoins for a higher price than the original value. Another way to make money off of bitcoin is
through a process called mining. Mining is adding a computer to a networks of computers that
process all the transactions. A person can make money off of bitcoin because as an incentive,
bitcoins are rewarded depending on the amount of transactions a computer processes. Lastly,
someone can make money off of bitcoin selling and buying. Similar to trading, the money made
comes from the fluctuating value. For example, there is one dollar worth of bitcoin one day, and
then the next, there may be two dollars in bitcoin due to the fluctuating value. This shows money
can be made by buying and selling goods in the currency and having a flow of bitcoins coming
in. These points prove that money can be made off of bitcoin by trading bitcoins at a higher
price, the process of mining bitcoins, and using bitcoins to buy and sell.

Calabio 4
These reasons have shown why bitcoin should be a viable method of payment because
bitcoin provides privacy and security for users of the currency, bitcoin helps businesses make
money, and bitcoin can help users make money. Bitcoin provides security and privacy from
bitcoins anonymousness because companies wont have any personal information. Bitcoin is
good for business because it opens up businesses to a global market of bitcoin users. Thirdly, it
allows people to treat bitcoin like stocks and trade low and then trade again when the value is
high. Even with these points, arguments are still being made over whether or not bitcoin should
be a viable currency. One argument is that bitcoin is no good because of its volatile value. It is
shown though that this is not bad and can actually be good. It allows people to make money off
of the currency. Even with the risks of adapting this new currency, the rewards for success with
this currency is tremendous.

Calabio 5
Work Cited
Cable News Network. CNN Money. CNN, 2015. Web. 5 Mar. 2015 <money.cnn.com>
Cofnas, Abe. Bitcoin: Currency or Commodity? Futures Jun. 2014: 10. Web.
<http://sks.sirs.com>.
Doherty, Brian. How Buying Drugs Online Became Safe, Easy, and Boring. Reason Dec.
2014: 50. Web. <http://sks.sirs.com>.
Goodale, Gloria. Bitcoin: Why Businesses Are Buying In, Despite Critics and Start-Up Woes
Legar, Donna L. Hackers ramp up computer attacks that demand 'ransom' USA Today, N.p.
Web. 5 Mar. 2015 <http://sks.sirs.com>.
Macht, Norman. Money and Banking: Exploring Business and Economics. Ed. Sally Cheney.
Philadelphia: Chelsea House Publishers, 2001. Print.
McClatchy Washington DC News Bureau. N.p. 11 Aug. 2014. Web. 5 Mar. 2015
<http://sks.sirs.com>.+