We are going to write about virtual currency and the ethics that are related to the right and wrongs of Bit-Coin.
By: Team Joseph (Joseph, Mashuk, Arden, Ranish, Grayson).
By: Team Joseph (Joseph, Mashuk, Arden, Ranish, Grayson).
Bit-Coins is a virtual currency that is used by thousands of people and has just recently been popular due to the rise in its value. The people who would have power in this scenario would be individuals who have access to fast computers and know how to use special software designed to mine bit-coins. The people who don’t have access to fast computers would be losing out as they don’t have the computer knowledge to do this on their own. Investors are making a lot of money from Bit-Coins as recently the price has risen, but as it is a high risk investment it is also possible to lose a lot of money.
Bit-Coins is a virtual currency that is recognized as a real form of currency. And can be transferred and used at banks and shops etc. At the moment it is not getting taxed, but legislations are being made so that Bit-Coins should be taxed as they have a high value. As Bit-Coins are virtual they are harder to lose as their value is stored online in a Bit-Coin wallet, which you can use to make free transactions online rather than getting taxed by banks. As Bit-Coins is an online currency people are able to take advantage of this and mine it. The process in mining Bit-Coins is downloading a program for your computer that’s uses up your CPU (Central Processing Unit) and your GPU (Graphics Processing Unit) to work out mathematic equations. In exchange for using your CPU and GPU power usage people receive a certain amount of Bit-Coin shares. The more equations that are solved the more shares of Bit-Coins you receive. At the moment that this report is being written one Bit-Coin has a value of $595.74.
As Bit-coins are a high risk investment they don’t have a stable price. An example of this is the price of a single Bit-coin dropped 27%. People can manipulate the virtual currency system and illegally mine for bit-coins. It is difficult to track how many Bit-coins there are and bit-coins can also be used to purchase illegal goods. The value of real life currency is represented by gold which a commodity however bit-coins are not represented by any commodity.
Bit-coins could worsen the state of our economy because we would have all these bit-coins and no way to track what they are spend on and who purchased it. Bit-coins could also put banks out of customers as everyone would be using online money.
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