Donn EJ P.

Yap 11227966

The article talked about how Bitcoins boomed in the economy. As I understood from my economics class, as demand increases, price decreases and as supply increases, price increases as well; in addition to that, I learned that according to a physician named Quesnay, Money is the blood of a country. Its no wonder the Bitcoin phenomena boomed or exploded throughout the world. The acceptance of bitcoins even spread as far as Asia. During the early stages of the bitcoin phenomena, before it was madness or a craze, few people mined the so-called bitcoins, solved algorithms made by Satoshi Nakamato. But as time passed by, more and more bitcoin miners played the game of mining and before everyone realized it, the demand for bitcoins shot up. Countries, although not all together, one by one started to accept bitcoins as currency and because of that, the value of bitcoins rose. That is one example of the law of supply and demand and this law aided my understanding of most parts of the article. Another term that was mentioned in my Economics classes countless of times was technology. Technology was a term that defeated the statement made by Thomas Malthus which was that humans would eat each other in the future due to the rapid increase in population and the scarce resources but not taking in account the change in technology. This article is one more proof that the statement made by Thomas Mathus was wrong. Through my years of education, although not as long as people taking their master degree in a certain college, I have learned that technology was rapidly changing and improving. But this article just showed me that my expectation to that rapidly improving technology was at its lowest level. And because of this rapidly improving in technology, Economic concepts and values computed before were changed and amended to fit the current situation of current economies and states. The bitcoin phenomenon is one of the factors that contributed to the evolution of economics. The Bitcoin phenomenon is a great Idea but it lacks internal and external control. If I were a policy maker, I would create a policy that would intensify the barriers for people who wish to mine. For example, I would implement a policy which would require people who wish to mine bitcoins have some sort of a license or a pass that must be renewed for a certain period of time or else it will expire. To acquire such license, one must submit several requirements. This is to prevent hackers and cons in the bitcoin industry and to promote the value of the bitcoin. The bitcoin really is a great thing that happened to the economy. It provides another source of wealth for individuals who pursue this type of currency. But it doesnt stop me from wondering what would happen if a server of something very significant that holds the bitcoin value in to place crashes and restarts. What would happen to the miners of bitcoins? I guess they have it covered and secured obviously. Another thing is that more and more people come to mine bitcoins. Soon, the bitcoin just might become another normal currency to people and given its difficult algorithms, people might just choose not to go for bitcoins anymore, and after that, the cycle begins once again.