Tools Assessment / Review - Assignment Example

Here are a few about Bitcoin; If users publicly broadcast their wallet addresses only then there can be a fraud. Otherwise no one can track transactions back to them. Other than the wallet owners, no one will know how many Bitcoins they have there. Sending or receiving Bitcoins requires users to keep their Bitcoin client operational and connected. In essence, using bitcoins contributes to the network, and therefore sharing the load of approving transactions. As a result sharing this work reduces transaction costs significantly.

A hard drive can crash, or a virus can corrupt data, similarly wallet file can be corrupted. In the past a number of incidents have been observed where Bitcoins have been lost or misplaced (Olayinka, 2011). One cannot do anything to recover lost Bitcoins. The value of Bitcoins is invariably fluctuates according to market. By June 2nd 2011, one Bitcoins was priced at $9.9 on a hot bitcoin exchange website (Olayinka, 2011). However, it was considered to be less than $1 only 6 months before (Olayinka, 2011).

This continuous change will make Bitcoin accepting websites to frequently adjust prices. While the countless economic boons and drawbacks of BitCoins are obvious, one cannot forget the brilliant potential it holds for the future of society. For instance, to rectify the blatant income inequality between countries there must be a worldwide implementation of a currency system like BitCoin (Olayinka, 2011). It would create a common market through which individuals could do international business, and probably flourish.

A man in Namibia could sell his products or services at an equitable price to a person in Germany. This would lead to an astonishing increase in his quality of life. Ember, S. 2014. On to-do list: deposit cash in Bitcoin A.T.M. The New York Times. [online] August 27, 2014