Yuna Oh

Apple Valley HS

9th grade

BitCoin vs. the Dollar

A dollar is worth exactly that: One whole American dollar.

But a Bitcoin? One Bitcoin can fetch as much as $2,700.

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A Bitcoin is a digital currency that is like no other. It is decentralized meaning that it stores and transfers money without involving any form of a centralized agent. There are no physical bitcoins, but balances can be viewed publicly on the blockchain which keeps track of all transactions.

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Bitcoins have been gaining the attention of more and more people due to its uniqueness and its advantages. For one, there are extremely few limitations when transferring money including time, location, and overpriced transaction fees.

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Because Bitcoin payments can be successfully made without any personal information, other than the user’s public address, public authorities and private companies are unable to track how and where a user’s money is being spent.

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Unlike PayPal and credit cards, bitcoins only require either a minimal or no payment dues This can be extremely helpful especially when traveling internationally. There are also no late fees and accounts cannot be frozen. Bitcoin can also be backed up and encrypted so that the safety of the money can be guaranteed.

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However, Bitcoins are not yet perfect, and still have numerous flaws. ?

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Bitcoins are not completely reliable because the value of bitcoins can fluctuate immensely on a day to day basis due to the market’s supply and demand.

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Also, transactions are only reversible if the person receiving the funds is willing to do so. Bitcoins are also not yet widely accepted so relying on bitcoins as the only source of currency can be dangerous.

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Despite all the assurance of the safety of using Bitcoin, repeated cyber attacks and hacking have occurred many times in the bitcoin community. Wallets can also be lost if a hard drive crashes or a virus corrupts data.

To conclude, Bitcoin has its advantages along with its drawbacks. The future of Bitcoins is unpredictable, so having mixed payment methods would be the safest route.

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Although it is highly unlikely for Bitcoin to be the main currency in the US, it is possible. This would create a serious damage due to its fixed supply of money and could possibly lead to an enormous economic decline.

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<Yuna Oh, Apple Valley HS 9th Grade>