Is Bitcoin going wrong?

Wednesday, June 18, 2014 0 , , , , Permalink 2

Yesterday ASOS dropped me an email to say it was our 5 year anniversary. Five years since my first foray into online shopping and I can’t believe how much the online landscape has changed. ASOS was the first store I felt brave enough to buy anything from online.  ASOS is only available online so I had no other option but to purchase online if I wanted to shop with that brand so that kind of forced my hand. This is way before I got into blogging or launched Fashion Follows Her (I was a technophobe). Even in the last five years my interaction with online media has changed; I tweet my complaints directly to the company involved, read the newspaper online and conduct face to face meetings via Skype. But I still worry about my financial safety online, despite only shopping on reputable websites so I’m really interested in Bitcoin the cyrptocurrency.

Bitcoin

Bitcoin work on a peer-to-peer basis with no single administrator, individuals can buy Bitcoins and trade them with other users online. The currency is ‘mined’ by users who receive Bitcoins as rewards for using their computer processing power to verify and record payments in a public ledger. So far, so good. Another positive step in the growth of online currency is the inclusion of apps that except Bitcoins appearing in Apple’s App Store. It’s not all rosy for Bitcoin though, on Friday mining pool Ghash (a collective of people mining Bitcoins together), gained 51% of all processing power used in mining Bitcoins. Theoretically giving Ghash the power to corrupt the currency which would of devalued the currency significantly, potentially making it worthless, which is extremely worrying. Until kinks in Bitcoins armour are fixed and made fail-safe I think I’ll stick to my credit card. Maybe in another five years I’ll look back and reminisce on what it was like to shop online before Bitcoin?

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