Review on Bitcoin by Umut ERDOGAN
Bitcoin Energy
It is a digital asset, not virtual money. To be virtual money, it must be tied to another real currency, but bitcoin does not need any other currency to exist.
The power behind bitcoin is more than just reputation. Therefore, it does not need state reputation such as dollar and euro. “Look, this piece of paper is a piece of money and is valuable. Even though the cost of this piece of paper is almost 0, I signed this piece of paper and it does not need a poorly based approach like “You have to work x unit of time to have this piece of paper”. It is somewhat indexed to electrical energy thanks to bitcoin pow. When you send someone x bitcoins, you are sending this cost of energy / hardware spent to generate x units of bitcoin. Therefore, the value of bitcoin is kept as x units of energy equivalent in itself.
Pros
- Bitcoin is the most open financial system to date. Even if there is no banking system, you can pay with Bitcoins 24/7 all over the world.
- You can spend Bitcoins just like you traditional digital currency spending from a desktop computer, mobile phone or debit card.
- Compared to other cryptocurrencies, Bitcoin has the most brand awareness, liquidity, as well as the most advanced ecosystem and the most acceptance among various retailers and organizations.
Cons
- Despite attempts to enable offline Bitcoin payments, the use of the currency is still heavily dependent on internet availability.
- Converting Bitcoins to other currencies often causes expensive fees
