Bitcoin Case Study

The Bitcoin Primer

Bitcoins is virtual currency that represents a major innovation in the development of money, while legal tender it is developing quickly in popularity and use. The main benefits of Bitcoin relate to its security of user anonymity, minimal transaction fees, and its independence from both government control and the banking system. It has likewise been very controversial due the role, as a preferred method of payment in the underground and black market economy. There are several of both challenges and opportunities facing Bitcoins according to the situation of market economic and society.

Challenges

The crypto-currency came out of seemingly nowhere, and before anybody knew it, it was the talk of the digital town.

Among end users of Bitcoin, there are problems that slows its adoption are that of usability and security. Another issue facing Bitcoin users is confidence, both among exchanges and transactions. Current Bitcoin exchanges are plagued with ponzzy schemes and compliance problems, making users wary of changing their money into Bitcoins. Due to an inefficient market, the price of the Bitcoin’ large price swings further eroding confidence in Bitcoin.

There are many challenges facing Bitcoin that happens in the market due a various situation. First of all, it does lack customers’ protection, high cause of black market due to its local exchange value, if Bitcom of say a customer gets stolen, being a local value, refunds can not be made. Bitcoins are risking since its use as illegal money transfers. It also has risk on effect on the ability of the Federal Reserve to run across the objectives like stable prices, maximum employment and financial stability. It concerns approaching the protection of consumers and inv...

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...ply and demand of the market. Those who seek a heightened degree of privacy may find more comfort using Bitcoin for their commercial and financial transactions.

It is easy to use portable and the transactions are done through Internet so very there is very less chances of robbery.

The removal of government from a monetary system is one of the other reasons of attraction of the Bitcoin; there is no government intervention. Governments (or their central bank) regulate the supply of money and credit and most often some degree of mismanagement of this government function is at the root of a persistent high inflation problem. In the case of Bitcoin, however, there is no government or central bank regulating the supply of Bitcoins. The supply of Bitcoins is programmed to grow at a steady rate regulated by the degree of mining activity and then is capped at a fixed amount.