The case for bitcoin

The success of cryptocurrency — a medium for making and receiving payments over a network using digital bits and encryption — is inevitable.

The reason is simple. The Internet has spawned a global electronic marketplace delivering unprecedented speed, choice and competitive pricing. Yet payments are still made using technology developed by banks to let their customers charge purchases at participating retail stores. Cryptocurrency eliminates the infrastructure and costs associated with storing physical money, authorizing credit and transferring funds between financial institutions in different countries. And cryptocurrency is arguably the solution to online credit card fraud.

Does that mean that the leading cryptocurrency, bitcoin, will be adopted by consumers? That is a more difficult question. A cryptocurrency must meet three requirements to gain consumer acceptance: 1. It must be easy to use, 2. people must see it as a reliable store of value, and 3. it must be supported by a critical mass of merchants.

One thing is certain: Bitcoin is an epoch-making invention with a fascinating history. Bitcoin’s decentralized public ledger, known as the blockchain, establishes instant trust between parties with no prior knowledge of each other. Blockchain enables Internet transactions to be executed directly between buyers and sellers without intermediaries

Read more ... source: TheBitcoinNews