In the next airing of “Morgan Spurlock Inside Man,” the host sets out to examine all the essential elements of this most modern form of currency. And, in advance of Thursday’s episode, here are the 5 W’s of bitcoin.
1. What is bitcoin?
Formal definitions aside, how best to explain money that you can’t hold, smell or feel, yet has every bit the purchasing power of paper or plastic?
In short, bitcoin was designed as a less expensive way to buy and sell goods, all around the world, while dodging pre-exisiting financial institutions.
“Its founder wanted to create a global currency that existed outside a central bank or government,” notes Spurlock. “Just a person to person system that could be used instantly and internationally.”
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Quite simply, bitcoin makes sense. And cents. For the user, the exchange eliminates clunky transfer surcharges, while for vendors it increases profit and eliminates fear of fraud.
“So every time I wire money every month to my free checking, free wire account it cost me $25.00,” reveals the host. However, for his bitcoin purchase – -1 unit for $623.00 dollars — the fee was 6/10th of one cent.
Meanwhile, for Brooklyn Bodegas, a food store that served as a grocery guinea pig, the use of bitcoin minimizes proprietor risk.
“You know, credit card fraud is so prevalent today and, you know, as a small business owner you assume that risk,” explained Van, a store employee. “So if there was another option to where, you know, that was cheaper, that was safer, bitcoin at this point in time is able to do that.”
