Bitcoin
A new form of currency has existed for quite some time now called cryptocurrency. The most typical cryptocurrency is Bitcoin; it processes transactions or store funds in network software, not rely on a central server.
Here is the graph of the value of Bitcoin since its creation, we define the value is globe Bitcoin price index(GBX) – Bitcoin(BTC) to United States Dollar(USD). (source from Bitcoin Average) (source from Bitcoin Average)
From the picture, recent years the value of bitcoin has begun to skyrocket, from 2010 to 2017, it increased by more than 80,000 times. There is some analyzation about the reason of sharply rise.
Bitcoin's production costs increase year by year. Mining
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First, the impact of material money market. Compared with the material money, Bitcoin does not distinguish between different currencies, and there are no exchange currency costs or be affected by exchange rate fluctuations. Also, the Bitcoin trades circulation in the global, for the international trade and economic development has brought great convenience. Bitcoin as a virtual currency, with the traditional entity currency, cannot match the advantages of the circulation of Bitcoins will produce a significant change in the currency market.
Second, the impact on the financial system. Bitcoin issuance and operation "decentralized", will challenge the bank's intermediary status. The value of account management, asset management and wealth management in the banking business will gradually decrease. There is no transaction fee for Bitcoin, that will also reduce the amount of remittance from the
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Such as the "litecoin" appearance in the market recent years, it has taken a huge impact on the price of Bitcoin. In addition, although Bitcoin attempts to avoid inflation by setting the upper limit of the quantity. The limited amount is likely to cause the price to fluctuate significantly, making it become the speculation rather than medium of exchange. (Bohme, Christin, Edelman & Moore, 2015) Also, Bitcoin may act as an illegal trading channel, affecting the normal social and economic order. As the Bitcoin is a peer-to-peer transaction, lack of third-party regulation. That may be abused in money-laundering, tax evasion, smuggling and other criminal acts, cause the economic market
War is not a cheap man’s game. At the core of every nation sits an economy comprised of varying wealth and resources. A nation’s prosperity is dependent on its economic fortitude. In a constant state of fluctuation, economic prosperity is often fleeting, with a single event capable of causing economic turmoil for decades to come. The terrorist attacks of September 11, 2001 acted as a catalyst for economic change in the United States. The attacks presented isolated economic desolation, but the growing concern for security and the war on terror provided the greatest economic impact for the United States and the world.
Bitcoins experienced tremendous growth in 2017. World leading retailers such as Dell, PayPal, Microsoft and Expedia accept bitcoins as a means of payment. Publications are always publishing bitcoin news and forums discussing this cryptocurrency and how its traded. This has resulted in a lot of media and investor attention. This article, therefore, tries to explain to the readers what bitcoins are, how to buy them, their features, how they work and their advantages.
Goodale, Gloria. "Rise of Bitcoin: Is the digital currency a solution or a menace? (+video)." The Christian Science Monitor. The Christian Science Monitor, 23 Nov. 2013. Web. 25 Nov. 2013. .
The topic that I’m going to write about in this paper will be on the electronic currency released in 2009 known as Bitcoins. Bitcoins is a type of currency that entails computer software to be used with one person exchanging with another person for a different kind of trading option such as the US dollar, products or services. There is a fourth reason why Bitcoins can be exchanged which is done when a person is mining, that occurs when a participant acts as a mediator for transactions whereas mediator approves and documents. Bitcoins is one of the largest and first electronic currencies ever created by any developer including the makers Satoshi Nakamoto. Bitcoins doesn’t meet the characteristic guidelines to be considered an actual type of currency, though the US Treasury recognizes it as a type of decentralized currency in that no person or organization including governments oversees the transaction of Bitcoins.
“The Economist Explains, How Does Bitcoin Work?” The Economist (2013): n. pag. Web. 08 Apr. 2014.
instantly with negligible costs for transactions. Cryptocurrencies are becoming widespread as a paper and electronic currency which poses an opportunity to investors who started early. Most of the commonly known problems with cryptocurrencies are the issues of deflation and also wasteful mining that leads inflation. The advantage is that, these problems are not such pervasive especially when the issue of the cryptocurrency economy as a general operation is considered. They only drive their own value by having the reputation of an effective transaction mechanism. This happens in cases that they seem to be overvalued while other cryptocurrencies getting an opportunity to arise. When they arise, they will thus increase the number of cryptocurrencies which will thence cause inflation while posing a limit to wasteful mining.
Michael Rodriguez James Maughn English 1A 20 May 2015 bitcoin fantasy. The Nation. The World. The World. ARE DIGITAL CURRENCIES THE FUTURE OF MONEY?
https://www.joinsnapcard.com Interview with Bitpay founder. What Industries Stand to Disrupt? Right now, companies such as Western Union, Moneygram, Paypal, and the more commonly used Visa and Master Card are making billions and billions of dollars each year in transaction fees. Here is an example.
...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. I believe trade and transaction of crypto-currencies should be encouraged on a local, national and global level. Although they have suffered major setbacks in the global economy, I maintain that crypto-currencies have a positive future and that they will undoubtedly affect the worlds economy.
The term ‘Bitcoin’ was first described in 1998 by Mr. Wei Dai on a mailing list called as “Cypherpunks” as a crypto-currency. He suggested an idea of a new form of money that uses the language of cryptography of computer science to control its creation & transactions virtually without any prior central authority.
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