This paper will examine the uses, advantages and risks of bitcoin. First deployed in 2009, bitcoin is an independent online monetary system that combines some of the features of cash and existing online payment methods. Bitcoin is digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds. Also, bitcoin is operating independently of a central bank. However, unlike cash, bitcoin transaction is irreversible (Fensch, 2014).
1. Bitcoin is known as a cryptocurrency because it uses cryptography. Cryptography basically makes any transaction secure between two parties. Security is very important, because every person with Bitcoins, their Bitcoins, and every transaction is logged to a public ledger visible by every computer on the
Bitcoin is a type of electronic currency (CryptoCurrency) that is autonomous from traditional banking and came into circulation in 2009. According to some of the top online traders, Bitcoin is considered as the best known digital currency that relies on computer networks to solve complex mathematical problems, in order to verify and record the details of each transaction made. The Bitcoin exchange rate does not depend on the central bank and there is no single authority that governs the supply of CryptoCurrency.
Bitcoins are a digital, or virtual, currency that uses peer-to-peer technology to facilitate instant payments that was created in 2009 by Nakamoto, (2008). Since Bitcoins are not a fiat currency (currency that a government has declared to be legal tender, but is not backed by a physical commodity), they are not controlled by a single entity like a central bank and are therefore
the facts about the Bitcoin digital currency system are: Bitcoin does not have a proper measure of value Bitcoin can either be a currency, a property, or a technology. From these facts it can be concluded that Bitcoin is only a conceptual medium of exchange that has little practicability in the real world as a fully functioning transaction system. Hence, it is evident that there are some shortcomings in the system which prevents it from being a primary alternative to paper based money. The main functions of money have to be fulfilled in order for Bitcoin to be a true currency. But the definitions of Bitcoin keeps alternating between currency, property or technology.
Why Investing Into Bitcoin is a Bad Idea Bitcoin is a virtual currency that has gained popularity in recent times because of its easy stricture and chance to gain a big profit. With many risks laid out in the road of investing into it, many amateur investors have taken a liking to it. But through this, investing into the cryptocurrency Bitcoin is a bad idea BACKGROUND Bitcoins. Everybody has heard of them. A virtual lottery where you put your money into a string of numbers in hopes of gaining a very big sum of money.
Google Wallet should solidify more corporate partners. Increasing exposure by partnering with more companies will thereby increase word-of-mouth advertising and create more “magic” experiences in store. Google Wallet can continue to use their current corporate partners to support any promotional or public relations events. 7. Team up with well know company’s campaign and set up app demos.
The transaction is then recorded into a virtual ledger of that specific cryptocurrency. Another term relevant to cryptocurrency is “Blockchain” meaning that before the transaction can be authenticated and followed through, the transaction needs to be authorised three times. These transactions are authorised through other computers owned by individuals that are registered on the cryptocurrency network as “Miners” and for every transaction authorised, these “Miners” receive a share of a cryptocurrency in return. The value of cryptocurrency is simply determined by the buying and selling of cryptocurrency. The more that is bought, this higher the price and the same goes to the more that is sold, the more the price will decrease.
The evolution of humans has evolved the money along the way and one way of money exchange was developed when bitcoin was introduced in 2008 by Satoshi Nakamoto. Introduction of bitcoin is quite controversial but it one of the biggest disruption in the banking and financial sector. The framework of bitcoin is a technology called blockchain; blockchain is a ledger or shared record available to all members connected to a network which validates all the transactions without third party intervention. A Blockchain stores its data in “blocks” which has a header and a body; blockchain utilises cryptography to validate all the transactions. So, how does this blockchain work?