...BitCoin the Future of Currency Currency is basically anything that is accepted as a medium for exchange. The common concept of currency is a physical note or coin of a certain denomination regulated and guaranteed by particular government or bank. Everyone around the world uses and depends on currency on a daily basis, hundreds of millions of transactions transacted by hundreds of millions of people whose individual wealth depends on the stability of their currency. The stability of any currency is dependent on many economic factors the most implicit being the stability of the issuing government. If the government who is backing the tender is unstable then the value of its money will directly be affected. Another huge factor in the value of a countries currency is inflation. Inflation is dependent on many factors, most of which are subsequent to the nature of an economic cycle. Some inflation is a by-product of the regulation, de-regulation and/or government monetary policy. What if there was a new currency that was not associated with a nation, government or bank? What if there was unified currency that allowed the wealth of one person to directly compare or exchange with to the wealth of another regardless of geographic location? This “new” currency has recently been developed and it is called the Bitcoin. The Bitcoin and its concept is extremely progressive and is not considered a savior currency that will solve any monetary problems; however, this paper will outline the...
Words: 1765 - Pages: 8
...I. Definition Bitcoin is a consensus network that enables a new payment system and a completely digital money. It is the first decentralized peer-to-peer payment network that is powered by its users with no central authority or middlemen. From a user perspective, Bitcoin is pretty much like cash for the Internet. Bitcoin can also be seen as the most prominent triple entry bookkeeping system in existence. II. Do you think Bitcoin is money? 1. Advantages of Bitcoin Payment freedom - It is possible to send and receive any amount of money instantly anywhere in the world at any time. No bank holidays. No borders. No imposed limits. Bitcoin allows its users to be in full control of their money. Very low fees - Bitcoin payments are currently processed with either no fees or extremely small fees. Users may include fees with transactions to receive priority processing, which results in faster confirmation of transactions by the network. Additionally, merchant processors exist to assist merchants in processing transactions, converting bitcoins to fiat currency and depositing funds directly into merchants' bank accounts daily. As these services are based on Bitcoin, they can be offered for much lower fees than with PayPal or credit card networks. Fewer risks for merchants - Bitcoin transactions are secure, irreversible, and do not contain customers’ sensitive or personal information. This protects merchants from losses caused by fraud or fraudulent chargebacks, and there...
Words: 660 - Pages: 3
...Business Research Business Research with Bitcoin In this paper I want to talk about Business research and how it applies to my area of business Crytocurrency, more specifically Bitcoin. So what is Business Research? The book says it is a systematic inquiry that provides information to guide managerial decisions. Or a process of planning, acquiring, analyzing, and disseminating relevant data, information, and insights to the decision makers in the ways that mobilize the organization to take appropriate actions, that maximize performance. The way that my business uses research currently is to find new technologies that are better than the current, new announcements for Bitcoin such as features, competition, or issues (Cooper & Schindler, 2011). A good example of how research can save my business is in early 2014 the price of Bitcoin went from $1200 to around 650 in one day. If I had not sold at the start of the dump at 1150 the day before, we would have lost half of our equity in one day. However due to research that my company had done, we saw the day before that a Japanese Bitcoin exchange MT GOX had been hacked, and around 1 million Bitcoin was stolen. Considering that there are only 21 million Bitcoins that can ever be in existence, which was a huge hit at almost 5% of the total. To understand how and why we do research thee way we do, you have to understand our product. So what is Bitcoin? Bitcoin has occupied front pages and preoccupied media for many weeks now...
Words: 742 - Pages: 3
...mining creates Bitcoins. Mining is a competitive and decentralized process that generates new bitcoins. Mining rewards individuals for their services through a network. Bitcoin miners use specialized hardware to process transactions and secure the network. In exchange, the miners collect new Bitcoins. New Bitcoins are created at a fixed rate and there is only a limited number of bitcoins, which makes mining a very competitive business. When more miners join the network, it becomes increasingly difficult to make a profit and miners must seek efficiency to lower or cut their operating costs. No central authority or developer has any power to manipulate or control the system to increase his or her profits. Every Bitcoin node that does not comply with the rules the system expects will be rejected. (Source 1 Paraphrased) Bitcoins are created at a rate that is pretty predictable. Each year, the number of new bitcoins is automatically halved. Once there is a total of 21 million bitcoins in existence, there will not be any new ones created. However, this will never be a limitation because bitcoins can be divided up to 8 decimal places (0.000 000 01 BTC) and potentially even smaller units if that is ever required in the future. Once there comes to a point where there will be no more Bitcoins created, small transaction fees will more than likely support Bitcoin miners. (Source 3 Paraphrased) Bitcoins have value because they are useful as a form of money. Bitcoin can be considered...
Words: 1165 - Pages: 5
...BITCOINS: A VIRTUAL CURRENCY Submitted to- Professor Dilip Thosar Submitted by- Chidansh Choudhary Rashi Taneja Rashmi Khinvasara Ridhima Agarwal Sahitya Kalidindi Tejal Bhandari Date of submission: 24th December ‘13 EXECUTIVE SUMMARY: Virtual currencies are increasingly becoming a part of not only the virtual world but also in the real world. There are various problems associated with virtual currencies. Due to its similar nature to real currency, a lot of questions have risen regarding its acceptance among the people in the market, and the reliability factor. In the following paper, we have discussed the different types of virtual currencies based on their exchange factor. Bitcoins, a type 3 virtual currency is one of the most popular crypto currencies. We have discussed the characteristics and the process of transacting Bitcoins in detail, emphasizing on the pros and cons of its usage. We have also compared it with the ‘fiat’ money and mentioned its legal aspects. In the end we have mentioned a few areas for further research in relation to Bitcoins. TABLE OF CONTENTS: Sr no. | Content | Page no. | 1.2.3.4.5.6.7.8.9.10. 11. | IntroductionTypes of virtual currenciesIntroduction...
Words: 4384 - Pages: 18
...Invented in January of 2009, Bitcoin is the world’s first online digital crypto-currency. Rather than relying on central authorities, Bitcoin uses cryptography to control its creation and management. In today’s day and age, cryptography is heavily based on mathematical theory, which Bitcoin creators used to create computational algorithms as a means of securing electronic Bitcoin transactions. From a globalization perspective, the dramatic rise of Bitcoins is of particular importance because of the threat it poses to the centralized global monetary system, as well as central banks of governments all over the world. For the basis of this report we will examine two reputable news sources, the British Broadcasting Corporation (BBC) and the Canadian Broadcasting Corporation (CBC), and review their coverage on Bitcoins, to produce an in depth analytical analysis of the global impact that this decentralised digital currency poses. Brief Introduction into the Background of Bitcoins In 2009 when Bitcoins were first unveiled to the global market, it was introduced as an alternative to the failing fiscal policy of the global monetary system, which was seen as a catalyst for guiding the world into the 2008 recession. Both news outlets recognized developer or developers, Satoshi Nakamoto, as the pseudonym for the creator of the Bitcoin protocol, which is based on “a fundamental critique of the world’s monetary system” (Mendoza, 2012, para. 4). Nakamoto expanded on this critique through...
Words: 2822 - Pages: 12
...Title: Why Bitcoin Roulette Took iGaming By Storm Description: Whether it’s free Bitcoin roulette or placing actual wagers, you will surely enjoy the advantages of playing the classic game alongside cryptocurrency payments. Keyword: free Bitcoin roulette Roulette is one of the oldest wagering activities that continue its fame all over the world for centuries, including European and Western countries. The game was first introduced in France back in the 17th century. The meaning of the world Roulette in the French language is ‘Little Wheel’. In the game, one wheel with is used to spin and roll a ball; the ball lands on any of the 36 or 37 (American Roulette) numbered slots marked on the wheel. Each slot is painted either black or white and has...
Words: 1056 - Pages: 5
...bitcoinA beginner's guide to Bitcoin Andreas Antonopoulos explains what bitcoin is, and how you can start using it. Q. How does bitcoin work? Bitcoin is a peer-to-peer network, a set of protocols (standards for interoperability), client interfaces (called wallets) and a currency that operates on top of all of those technologies. The bitcoin system allows any person to send or receive a fraction of a bitcoin (the currency unit) to another person, anywhere in the world. The bitcoin system operates on the Internet without the need for banks or bank accounts and allows people to send money like they send email. To start using bitcoin, you need a bitcoin client, or "wallet" application. The bitcoin client allows you to use the bitcoin network, just like a web browser allows you to use the web. There are many different types and makers of bitcoin wallets, for desktop and mobile operating systems and also available as web applications. To receive bitcoin, you need a bitcoin "address", which is a bit like an email address or bank account number. If someone knows your bitcoin address, they can send you money, but cannot do anything more, not even identify who you are or where you are. Therefore, you can freely share your bitcoin addresses with anyone without fear or security risk. Once you have a "wallet," it can create any number of bitcoin addresses for you, even one per transaction. Give those addresses to anyone you want to send you bitcoin. Tip: bitcoin addresses are created by your...
Words: 1478 - Pages: 6
...ABSTRACT The Bitcoin, which was created by programmers, is a virtual, is a virtual currency whose value is derived from the trust of those that choose to use it. Since 2009 the big coin has grown substantially and now is seeing in active use worldwide. While the Bitcoin has seen some complications due to the ease of use and illegal enterprises however still provides a substantial upside over traditional currency. As the Bitcoin is consistent across borders worldwide it provides a significant opportunity to tear down barriers seen in international trade today. The Bitcoin can easily be seen as the first steppingstone towards the development of a universal currency. TABLE OF CONTENTS INTRODUCTION Globalization The Bitcoin Bitcoin and its Impact on Economic Globalization Is the Bitcoin the Beginnings of a Universal Currency? The Future of the Bitcoin Pro: No Specific Monetary Authority Pro: Gaining Acceptance Across the Globe Con: Lack of Regulation Con: The Bitcoin is Innovative Start but Not the Final Answer SUMMARY AND CONCLUSIONS I. INTRODUCTION 1. Globalization Globalization is expansion of economies, culture, and cooperation beyond geographical borders in which countries can grow beyond their personal limitations by engaging the world market. This cooperation can lead to technological advances, increased manufacturing capabilities, economy stability, and encourage innovation. The three major types of globalization are economic, cultural...
Words: 1742 - Pages: 7
...tasks in the virtual environment or simply participating for a set period of time, and users can also buy it, converting real currency into virtual, usually at a very favorable exchange rate. Virtual currencies like Bitcoin, Ripple, Litecoin and others have developed rapidly these years. Compared with traditional currency, virtual currency differs in many aspects. However, will virtual currency be able to take over traditional currency in the future? Economists have different idea on this question. The essay is presenting the arguments that virtual currency will replace traditional currency and vise-versa. One argument comes from People.cn: Some virtual currencies have become independent currencies and no longer depend on sovereign currencies. With future development, virtual currencies will replace traditional currencies. (Can Virtual Currencies Strike the Real World? 2013) In this argument, the premise is some virtual currencies have become independent currencies and no longer depend on sovereign currencies. This premise is deniable. Virtual currencies are not independent by now. They still need the support of sovereign currencies. For an example, people use the real money to buy Bitcoin and store it in a digital wallet. Or by mining, people can get Bitcoin, but the real money is still necessary to buy the equipment for mining. In this process, virtual currencies still need to depend on sovereign currencies. So this premise is not very reliable. The conclusion of it is...
Words: 2756 - Pages: 12
...Since 2008, bitcoin adoption has been influenced by a diverse range of factors that have made it one of the most volatile currencies in the world. Yet, despite such volatility, more than 100,000 bitcoin transactions are taking place per day and the volume continues to grow due to the ‘permission less innovation’ provided by bitcoin’s underlying technology, the blockchain. A block chain or blockchain is a permissionless distributed database based on the bitcoin protocol that maintains a continuously growing list of transactional data records hardened against tampering and revision, even by operators of the data store's nodes. As the blockchain matures, bitcoin will increasingly resemble traditional financial services, with functions such as retail banking (circles) exchanges (coinbase) and payment processors (bitnet) are being created. But how did it all start off, and where will it go next? Here, we take a brief overview of the major milestones in the cryptocurrency’s brief history and look to where it might be headed in the future. Bitcoin was invented by Satoshi Nakamoto,]who published the invention on 31 October 2008 in a research paper called "Bitcoin: A Peer-to-Peer Electronic Cash System". It was implemented as open source code and released in January 2009. Bitcoin is often called the first cryptocurrency although prior systems existed. Bitcoin is more correctly described as the first decentralized digital currency. 2008 Three individuals, Neal Kin, Vladimir Oksman...
Words: 1115 - Pages: 5
...BITCOIN CASE CASE STUDY Bitcoin shakes up remittances as poorer people offered digital deals Social entrepreneurs in developing countries are using mobile phones and the controversial digital currency bitcoin to increase the speed, and slash the price, of international money transfers, raising the prospect of a revolution in the $600bn annual global remittance market. Soaring rates of mobile phone use in developing countries are helping the entrepreneurs compete with more usual forms of money transfer in countries where remittance rates and fees are highest. Many of the world’s poorest people depend on money sent to them from friends and family abroad. According to World Bank figures for 2011, nearly half of Tajikistan’s GDP is derived from remittances, while in Liberia, Lesotho, Nepal and Haiti they account for more than a fifth of GDP. Entrepreneurs claim they are using bitcoin to give some of the world’s poorest people a better deal on the money they receive from abroad. The World Bank calculates the average fee on remittances at 8%, yet charges can be three times as high. A report from the Overseas Development Institute (published in April 2014 , said the benefits of remittance transfers “are lost in intermediation as a result of high charges. Africa’s diaspora pays 12% to send $200 – almost double the global average.” Bitcoin could also cut the time it takes to send remittances. BitPesa, a Kenyan mobile money transfer firm that launched in May, says...
Words: 761 - Pages: 4
... MEMORANDOM TO: Paul Pascal, President FROM: Melanie Soto, Chief Technology Officer DATE: April 21, 2014 RE: Bitcoin Research Introduction: What is Bitcoin? First to answer that question, Bitcoin is another way the average consumer can sell and buy products. The way bitcoin is used is through any computer with Internet connection. As long as you have a computer you can purchase and sell items. A benefit that this has is that the accounts aren’t managed through third parties or banks therefore you can send and receive transactions with a click of a button. There are two ways that you can obtain bitcoins. One way is through mining. You have an electronic wallet on your desktop, laptop, iPad, etc. . This wallet keeps track of how many bitcoins you have and you can than start mining. Mining is when you allow you join a pool that links with other people who are mining to generate bitcoin money with the help of each other’s servers. The second way is to actually purchase a bitcoin. Problem: There are numerous ways that you can purchase Bitcoins but it all depends on which exchange process you use to purchase them. Overall bitcoin is very easy to maneuver but the actual value is not so stable. Since there is a certain amount of bitcoins that were made the value of the currency fluctuates. Meaning if the coins are in popular demands than they are going to be worth more because more people are trying to...
Words: 722 - Pages: 3
...Internet has impacted global finances? Internet and World Currency – Bitcoins and Illegal purchases over the web By Harvey T. Mayorga Panther ID 2191830 FIN6644 Instructor: Dr. Krishna Dandapani ABSTRACT The subject of this project is going to be Bitcoins. I will be researching and going about how Bitcoins work, how good or bad can bitcoins be and its involvement in illegal purchases over the internet. SUMMARY Page 2 Abstract 4 What are Bitcoins? 6 Bitcoins Timeline 7 Bitcoins good or bad? 9 Who is using Bitcoins? – Bitcoins and illegal transactions 11 Silk Road and Bitcoins 13 Bitcoins and the US Economy 14 Income Statement 16 Balance Sheet 18 Cash Flow 19 Bitcoins today 21 Where to Buy Bitcoins? 22 Articles What Are Bitcoins? Bitcoin is an innovative payment network and a new kind of money. It was created in 2009 by an unknown person using the alias Satoshi Nakamoto. Bitcoins is an online payment system introduced in 2009 as an open-source software. It is a peer to peer or P2P system where users can transact directly without needing an intermediary. Transactions are verified by network nodes and recorded in the block chain or public distributed ledger. This ledger uses its own unit of account, bitcoin. The system works without a central repository or single administrator, which has led the US Treasury to categorize it as a decentralized virtual currency. (www.wikipedia.com, 2015) Bitcoins are stored in a digital wallet. This wallet can exists...
Words: 3684 - Pages: 15
...Overview Society ismoving from a cash driven to a electronic payment system for the purchase or use of goods and services. The internet and mobile devices have become the market place of choice for transactions. Cash transactions are not possible through this election mercantile system. Bitcoin has risen to fill the need for electronic transactions. Bitcoin is a form ofdigital currency. Bitcoin has no government and no source of backed asset such as gold backing. The use of digital currency is being driven by several different issues. Such as the rise of rebellion of consumers who are seeking refuge from banks and taxation by governments. Consumers are losing faith due to the liquidation and taxation of the value of government back currencies. Bitcoin has become a currency that consumers can use like cash over the internet to avoid recording of the transaction. Another use is for payment of illegal activities anonymously. This report researches the rise and use of bitcoins and how it will challenge central government backed currencies. The Cyprus run on the banks George Kyprou, 62, born in Larnaca Cyprus, had worked most of his life as a chauffeur and driver in England, proudly buying his London council flat and scrimping to put aside money in Cyprus for when he returned for holidays and eventually to retire. "I'd put aside £50 here, £20 there, all my life," he said. Over decades, he had built up around €6,000 (£5,200) in a Larnaca account. "It was a state building society;...
Words: 4819 - Pages: 20
