User:Bitcoin Code Review
The Bitcoins share a public ledger Bitcoin Code (block chain ledger) where every transaction is recorded making it a prominent triple entry bookkeeping system and a transparent recorder. Using the peer to peer system and a cryptographic key, transactions are processed between clients. As the key cannot be deciphered it's a more safe form of internet cash than performing transactions with credit and debit cards.As with every new emerging trend, the Bitcoins have advantages and disadvantages. But if the obstacles are removed, it might help re-imaging of International finance. The advantages of Bitcoins are
The users have total control over the money, they can send and receive any amount of payments at time of the day. As these transactions are not performed by banks or organizations but between individuals its easy as sending a file.The transactions require no or very less money compared to other online money transfers which stick up a hefty fee, the only service in Bitcoins is done by the miners to facilitate the transaction recording on the block and that doesn't cost much.This is the most secure and irreversible form of cash transactions where no personal information is traded. Most people will opt for this method as it removes major hassles involved in other transactions.Large markets and small businesses have widely accepted it as it helps in quicker and reliable money transfers with very little administration cost.
Gold and Bitcoin have been used synonymously as safe havens and currencies. What is a safe haven? It is a place to park wealth or money when there is a high degree of uncertainty in the environment. It has to be something that everyone can believe in even if the current institutions, governments or players in the business game are not available. The wealth has to be kept safe in times of trouble. What are the risks to someone's wealth? There is theft by robbery if it is a physical asset. There is damage by fire, flood or other elements. There is the legal issue in not being able to determine if the asset is really yours or not. There is access risk in that you may own the asset but may not be able to get your hands on it. You may own the asset but may not be able to use it due to some restriction. Who else do you have to rely on to be able to use your wealth - spending it, investing it or converting it into different units of measure (currencies)?
