Bitcoin as a Currency: Bitcoin as a currency represents an innovation in the financial service industry and has tremendous potential of attracting economic benefits. Bitcoin is supported by the Bitcoin Foundation, which is a group of programmers, economists, and enthusiasts who are constantly making efforts to “standardize, protect and promote” Bitcoin. Many startup organizations have supported in favor of the bitcoin as a currency. Startups like BitPay are supporting the growing desire of creating simple platforms to allow online transactions in the form if bitcoins just like online payment mechanisms provided by PayPal and credit card firms. BitPay has “compiled a directory with more than 12,000 businesses and charities that accept Bitcoin using a service” [1]. The startups are playing a pivotal role in shaping the future of bitcoin by accelerating legitimate uses of currency in both the forms, online and offline. With increased popularity of bitcoins, more merchants are accepting Bitcoin and realizing the benefit over conventional transactions. Moreover, banks and money service businesses (MSB’s) such as Visa or American Express or Master Card charge transaction processing fees in the range of 2-5%. Bitcoins, on the other hand do not …show more content…
The definition of bitcoin as a commodity has made the definition of bitcoins broader. There would be direct implication of this statement and jurisdiction on the startup firms. The firms would have to first jump through a bunch of hoops before legally running a market of bitcoin derivatives for US users. Also, CFTC could keep a strict watch on fraudulent activities involving exchanging of bitcoins and not just bitcoin
Bitcoin is mathematically protected digital currency. It is maintained by a network of peers. It is a new form of exchange. Bitcoin consists of three main components: Digital signature which is used to authorize individual transactions and thus safeguard bit coins. Transaction chains which are used to store history of ownership and block chains which holds the order of transactions. Block chains are formed as a result of computational race. Bitcoin uses SHA-256 hashing function for formation of block chain. There is no centralized command for bitcoin. No person is responsible for bitcoin. Thise who transact using bitcoins, do not necessarily hold bitcoins, they just control the wallet storing bitcoins. Bitcoin can be the future of crypto if it continues to receive support from individuals and miners which are contributing to the success.
Fiat currencies are starting to become outdated, and many are looking for a solution to the issues of credit cards. Since the dawn of the internet, people have been kicking around the idea of creating a digital currency. It hasn’t been until recently, however, that this dream has become a reality. It has only been 6 years since the release of the first cryptocurrency, Bitcoin,
The real goal behind Congress’s anti-money laundering scheme is that of complete transparency. Congress wants to be informed. Currency reporting makes this information a federal interest. Information is the glue that holds the whole structure together. Any attempt to use cash or its equivalent in excess of $10,000 will immediately raise the suspicion of any legitimate bank or business. The bank or business will report this persons name, tax identification number, and other pertinent information to the IRS and the Treasury department. Since Bitcoin offers anonymity for its users, it is no surprise that it has been at the central of money laundering controversy.
2. Šurda, Peter. 2012. “Economics of Bitcoin: is Bitcoin an alternative to fiat currencies and gold?” WU Vienna University of Economics and Business.
Michael Rodriguez James Maughn English 1A 20 May 2015 bitcoin fantasy. The Nation. The World. The World. ARE DIGITAL CURRENCIES THE FUTURE OF MONEY?
...s, Nathan. "Bitcoin: Virtual Money Created by CPU Cycles." Welcome to LWN.net. 10 Nov. 2010. Web. 28 Nov. 2011. .
The first Bitcoin Transaction was executed on 12/01/2009. It takes 5 years for a single bitcoin to go from $0 to $1,000.20000+ number of computer working at minning new bitcoins. There will be 21 million number of bitcoins that will be available. In 2012, an academic from the Carnegie Mellon CyLab and the Information Networking Institute estimated that 4.5 to 9% of all bitcoins transacted were for purchases of drugs at a single online market. In a separate case, escrow accounts with bitcoins belonging to patrons of a different black market were hacked in early 2014. So it’s up to us, the Bitcoiners of the world, to continue to build, include, educate, develop and create new relationships with each other while using this new amazing technology for the betterment of mankind
global organizations, demographics and communities are responsible for the large success of the many crypto-currencies on the digital market today. From my discovery of crypto-currencies in late 2013, I have discovered a major trade community with the international population. The crypto-currencies are growing largely in size and popularity. I am concerned over the stability of crypto-currencies - many of types currencies have suffered major capital loss, decrease of market cap, theft, illegal trade etc.. These certain currencies could be a hazardous to deal with in the future.
Wallace, Benjamin. "The Rise and Fall of Bitcoin." Wired. 23 Nov 2011: n. page. Web. 7 Apr. 2014. .
Bitcoin has been compared to the internet of the early 90’s by many people in that it has the potential to become a huge global peer to peer payment system allowing people to exchange currency value over the internet without a 3rd party bank. Much like the internet in its infancy was the basis for global commerce, Bitcoin has the potential to become a huge global payment network that operates outside of banks and government control.
Over the last ten years people in the United State and around the world have heavily relied more on their debit or credit cards to process transactions of their purchases. In the old days it used to be when you would get your paycheck on Friday and rush to the bank during your break or lunch in order to cash withdraw your funds or deposit them into your account. It used to be where you carry cash to buy groceries, pay bills, and go shopping. Now some people don’t even set foot inside their bank branch because they are paid using direct deposit or the funds are loaded into a debit card provided by their employer. Many employers from around the globe don’t even issue paper check anymore.
Perhaps the most purposeful use for cryptocurrencies like Bitcoin is, like the name implies, as a virtual currency. At present, it seems that Bitcoin has the most potential of all the cryptocurrencie...
The use of credit and debit cards today are taking a tour in the sense that electronic cash is becoming more admissible as the world makes a switch towar...
A cashless society will further improve the globalisation that characterise our present time. The computerised systems can be used to decrease the quantity of paper trail therefore substituting paper cash with cashless credits or electronic money transfers. However, in a cashless economy, this will change with certain crimes almost eradicated. It will also be faster to generate electronic payments than cash as Near Field Communications (NFC) chips make their way into more payments cards and mobile handsets as well providing protection not applicable to purchases made using cash. This technology is simple with low power wireless link evolved from radio-frequency identification (RFID) tech that can transfer small amounts of data between two devices identifying us and our bank account to a computer. Another benefit of drawing nearer to a cashless society is that other companies are providing pioneering cash-free solutions to the payment related problems we come across. For example, WisePay, a provider of e-payments services, is deploying technologies that ensure parents no longer have to worry about sending their children to school with cash to pay for meals, excursions and other fees that will eliminate the likelihood of being caught short for cash or children misplacing money. The Government also has valuable explanations why they may deem to turn away from cash. Due the main factor of printing and distributing cash, not to mention ensuring the economy is free from forgeries which are all costly endeavours estimating that the cost to society of using cash is between 0.5 and 1.5% of GDP annually. In addition, there are many technological innovations that propose there is a real enthusiasm for an alternative to cash with the upsurge...
One of the most notable digital currencies in today’s online world is bitcoins. In the