Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
The advantage of bitcoin
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: The advantage of bitcoin
Imagine a world where there are no banks or even a need for wallets. This may sound like a nice freedom at first until illegal activities sky rocket; including the drug and sex trade. The economy will crash and millions of people will be left high and dry with a worthless currency. This type of chaos will not only devastate the United States but will also be seen world wide. With the way technology has been advancing this could be a very plausible future, thanks to Bitcoins. Bitcoins are a new form of digital currency in which the consumer uses and stores all of their money on a computer. This allows for quick trade, not only within your own country but others as well (Ethley par. 2-4). Although there may seem to be great benefits that Bitcoins offer, they are actually more damaging then beneficial. Bitcoin use will have a huge negative effect on the economy, they are filled with security issues, and support criminal activity due to their anonymous nature.
Bitcoins function as a completely anonymous form of digital currency. They allow people to make peer-to-peer transactions without ever making contact with the individual or exchanging any type of personal information (Zetter par. 6). This allows for quick worldwide transactions but also allow for more criminals to access an account. Since Bitcoins are a digital currency, they are kept and traded completely online. This digital currency functions mainly on the “Deep Web”, which is a part of the internet where many hidden illegal activities take place. To access the Deep Web, all one needs is software (Grossman par. 1-5). This is the area in which Bitcoins thrive since it is hard to regulate what happens on the Deep Web.
A Bitcoin account is also very easy to make but hard t...
... middle of paper ...
...Evans, Pete. "Bitcoin Bank Flexcoin Shuts Down After $600,000 Theft." CBC News. 4 Mar. 2014. Web. 2 Apr. 2014.
Grossman, Lev, et al. "The Deep Web." Time 182.20 (2013): 26. Academic Search Complete. Web. 2 Apr. 2014.
Lee, Timothy. "Four Reasons You Shouldn't Buy Bitcoins." Forbes. 3 Apr. 2013. Web. 10 May 2014.
Matthews, Christopher. "Why Economists are Right to Hate on Bitcoin." Time.Com (2014): 1. Academic Search Complete. Web. 2 Apr. 2014.
Pagliery, Jose. "Bitcoin is Under Attack." CNN Money. 12 Feb. 2014. Web. 2 Apr. 2014.
Pagliery, Jose. "Drug Site Silk Road Wiped Out by Bitcoin Glitch." CNN. 14 Feb. 2014. Web. 2 Apr. 2014.
Yermack, David. "Bitcoin Economics." Technology Review 117.2 (2014): 12. Academic Search Complete. Web. 2 Apr. 2014.
Zetter, Kim. "FBI Fears Bitcoin's Popularity with Criminals." Wired. Conde Nast, 9 May 2012. Web. 2 Apr. 2014.
Bitcoin is a digital currency that was started in 2009. It is a digital representation of currency with no actual tangible representation. Bitcoin, commonly abbreviated as BTC or XBT, is distributed worldwide, decentralized digital money (also called cryptocurrency). It is decentralized, meaning it is not controlled nor backed up by any government, country, or individual entity. Unlike traditional currencies, such as dollars and euros, bitcoins are issued and managed without any regulation from any central government. Thus, it is more resistant to inflation and corruption. A Bitcoin derives its value basically from the demand and usage of bitcoins, similar to a stock. Bitcoin doesn’t derive its value from the government; it derives its value from the people. The more that use/accept it, the more of a demand there for it, and the more valuable it becomes. Bitcoin is controlled by the people; you are your own bank. Transaction terms are determined by the user. Bitcoins can be bought with credit cards, PayPal, bank transfers, or even going to a local bitcoin exchange and buying them with cash. A person can acquire bitcoins as a payment for goods or services, purchase them with real money at a Bitcoin exchange, exchange bitcoins with someone you know, or earn bitcoins through performing mining services for the network. It has value and can be exchanged for real physical money, it’s valued exchange rate goes up and down like a stock, and it’s traded online like PayPal, but it is none of these. It’s widely considered as the future of world currency, but also scrutinized as a gateway for illegal activity. So which is it?
Silk Road was launched in February of 2011, later becoming known as the “Amazon.com of illegal drugs”, or “the underground website where you can buy any drug imaginable” [1]. A user of Silk Road has the ability to find a dealer specializing in a drug with positive feedback and check out a digital shopping cart, just as if it were any other online shopping site. One user “Bloomingcolor” appeared to be a trusted vendor with a specialty in psychedelic drugs. This sort of reputation-based trading system is found all over legal online marketplaces such as Amazon or eBay. The only accep...
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.
Binhammer, H. H. & Peter S. Sephton. Money, Banking and the Financial System. Nelson, 2001.
Cullen, Lisa. "What It Means For Your Wallet". Time. April 10, 2006. Off of NewsBank
Bitcoin is a form of digital currency that is similar to physical cash stored in a digital form. It is the first fully implemented cryptocurrency protocol utilizing an open source peer-to-peer payment system. As a transfer protocol, it fundamentally functions as a money transfer medium that sends bitcoins from user to user without the need of a third-party intermediary and the system is protected by peer-reviewed cryptographic algorithms. This cryptographic digital currency simultaneously provides users a method to exchange money for free or a nominal fee, which is mutually beneficial for retailers and consumers. The main concern is that it can be used for illegal activities such as the purchase of drugs, weapons and other illegal goods. Albeit true, the concern also exists with all other forms of regulated currency, such as cash and wire transfers. Anonymity is one of the greatest Bitcoin perks, however, nothing is as untraceable as cash. It is the solution to the leading economic and security issues that have left everyone vulnerable, particularly in the wake after the Target security breach in which hackers stole unencrypted credit card and debit card data for 40 million customers’ as well as their pins over the span of two weeks before it was detected. In addition, these hackers were also able to obtain the names, addresses, phone numbers, and email addresses of 70 million customers (Andreesen 6). If Bitcoin were to be used as the standard form of payment, the transaction data does not identify the purchaser’s identity and all information is encrypted. It is the most secure payment method and is a more secure future. Bitcoin is a technologically innovative soluti...
O'Sullivan, A., & Sheffrin, S. (2005). Economics. Upper Saddle River, New Jersey: Pearson Prentice Hall.
BY DOUG HENWOOD What’s being touted in some circles as the future of money looks hardly more peaceful than its past. Bitcoin, a formerly obscure cybercurrency, is now all over the headlines with reports of bankruptcies, thefts and FBI lockdowns. If our fate is to buy and sell bitcoins, this instability is troubling. But despite the headlines, the triumph of Bitcoin and related cyber-currencies is a lot less likely than recent commentary suggests.
Bitcoin is a digital currency, similar to cash due to the fact it is instant, however, is not managed or controlled by a central government or organization. Instead, the network is run on thousands of independent user’s computers. None of these computers have more control over the network than any other computer. The network that Bitcoin was founded upon is based on 40 years of research in cryptography and over 20 years of research in cryptocurrencies by thousands of researchers around the world. Bitcoin answered what was thought to be an unsolvable math problem known as the Byzantine Generals Problem.
Ritter, Lawrence R., Silber, William L., Udell, Gregory F. 2000, Money, banking, and Financial Markets, 10th edn, USA.
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
Firstly, an insight into crypto-currencies, what they are and how they can benefit the worlds economy. A crypto-currency is ‘digital medium of exchange’(RhettandLink) - managed through extensive encryption techniques known as cryptography. Comparable with fiat money, no group or individual can stunt, increase or abuse the production of crypto-currencies. No economic systems can regulate the production or value of the currency, the system that crypto-currencies are based upon was created by Satoshi Nakamoto - purposely creating Bitcoin which the practise of fractional reserve banking would be virtually impossible. Bitcoin is currently the most successful crypto-currency to date - created in 2009, this anonymous decentralized digital currency has been the target of several raids and hacking sprees; the media are contemplating the significance of Bitcoin in our current worlds economy. Whether it has potential of overruling fiat-currencies or if it’s just a puerile project created by the aberrant Satoshi Nakamoto.
One of the most notable digital currencies in today’s online world is bitcoins. In the
The invention of money is perhaps one of the greatest achievements of human civilization. From the very beginning of society, people have used money to circumvent the difficulties of bartering and to foster trade and commerce. Since then, money has come a long way. No longer do we need to rely on silver coins, cocoa beans, or even anything of intrinsic value to conduct our business; today, we use paper currency, which is convenient and easy to carry around. But slowly, we are moving into the digital age of money, an age in which less of our money is actually tangible and more of it is just data on a computer server.
Cybercrime is a global issue plaguing the world. The dictionary defines cybercrime as “crime conducted via the Internet or some other computer network”(Merriam-Webster). The definition remains very broad because the word “cyber” is defined as “relating to the culture of computers, information technology, and virtual reality.” Due to the growing number of people gaining access to the internet, rapid development of technology, and the globalization of the world, more of the world population is becoming susceptible to involvement in cybercrime – whether it be as a victim or a criminal. Cybercrime involves different levels of the world on both the victim and criminal side, from an individual citizen, to small groups, businesses, and the government, to the countries of the world.