Bitcoins

James Fontana

IT 103 Section 009

Honor Code

"By placing this statement on my webpage, I certify that I have read and understand the GMU Honor Code on http://oai.gmu.edu/the-mason-honor-code/.  I am fully aware of the following sections of the Honor Code: Extent of the Honor Code, Responsibility of the Student and Penalty. In addition, I have received permission from the copyright holder for any copyrighted material that is displayed on my site. This includes quoting extensive amounts of text, any material copied directly from a web page and graphics/pictures that are copyrighted. This project or subject material has not been used in another class by me or any other student. Finally, I certify that this site is not for commercial purposes, which is a violation of the George Mason Responsible Use of Computing (RUC) Policy posted on http://copyright.gmu.edu/?page_id=301 web site." 

Introduction

      Bitcoins are a recent digital form of currency created and introduced by programmers in the year 2009.  This type of currency is anonymous and thus not issued by any bank or central government or any established form of authority.  No form of commission or any additional fee for the money to transact is needed.  It is as if you are paying someone in cash to do you a favor, but that person can be on his computer on the other side of the world.  Because it is third party controlled and cryptographically limited, bitcoins are often perverted to purchase illegal substances and further support other criminal agendas.  There are currently no buildings or companies founded to regulate bitcoins, leaving little chance for it to advocate and legal or ethically sound activities.  However, just because there is currently no form of regulated virtual fiat currency without it being taxed, it does not mean there can’t be positive uses for it in the future.  In theory Bitcoins or something similar could be innovative and prolific.