Advantages And Disadvantages Of The Benefits Of Bitcoin

Bitcoin is an independent online system that uses features of both cash and online payment methods. Similar to the use of cash, Bitcoins allow the individuals to be anonymous with their transactions. The transaction is cryptographically signed to transfer the amount from one individual to another. At the same time these transactions are irreversible. This is similar to the no charge back risk that is found with credit cards. All Bitcoin transactions require a “third-party mediation: a global peer-to-peer network of participants validates and certifies all transactions” (Meiklejohn, et al., 2016). This decentralization entails each transaction of the entire system to be stored by each individual who uses Bitcoins. In 2012 this amounted to over three gigabits of compressed data (Meiklejohn, et al., 2016).

Drug crimes happen to violate state or federal drug laws from possession, manufacture, use, or distribution. Trafficking does impede national currency of transactions seeing as, “both the federal government and many states criminalize drug trafficking and broadly define it as the trade or dealing in illegal substances” (Tran, 2016, para. 2). Its seriousness will confront some measurement by a range of economic damage, loss to victims, and so on. Ultimately, some elements bring an allowance of illegal narcotics or controlled industrial compounds to circulate within the U.S. government.

A business relies on supply and demand regardless of whether the product it is selling is legal or illegal. Therefore, a business that offers illegal drugs like marijuana, cocaine, and heroin and services not readily available to customers in the United States creates a niche. Drug traffickers (cartels) set prices for such illegal goods without government regulators circumventing the law. Cartels set prices based on supply and demand elasticity for drugs, which helps in creating a loyal customer base. If the demand is high toward a specific drug and supply is low, then prices will rise until supplies are plentiful. Drug trafficking yields such vast amounts of revenue, approximately $150 billion per year; it becomes extremely difficult

The vast amount of money in the drug trade can compromise local economies and can permeate government agencies and institutions, leaving nations susceptible to corruption. Organized

Illicit activities are worth 650bn worldwide, of which $320BN is due to drug alone. Other high value illegal trade was counterfeiting worth $250bn and human trafficking $31.6bn. drug trafficking is one of the big cost and its 10 times bigger than human trafficking. It’s impossible to stop the amount of drug that comes to the us.

To fully comprehend Bitcoin, one must understand the process of becoming a Bitcoin user and the block chain. The first step to becoming a Bitcoin user requires a decision be made on what type of digital wallet service to use. One form of this is an online wallet service. Charles Babbage, a mathematician, engineer and writer for the The Economist details this downside in his blog post titled the “Bits and Bob” “This means trusting the provider of that service not to cheat, or go out of business, taking clients' savings with it” (par 3). The other method is to download a personal digital wallet on the user’s computer. If the user does not back up the drive in which the digital wallet is stored, there is a chance that the Bitcoins could be lost. The next step requires the user to join the Bitcoin network. This is where Bitcoin starts to differ from normal currency. Bitcoin is a peer-to-peer network. Krohn-Grimberghe and Christoph Sorge from the University of Paderborn, Germany states that “Bitcoin was designed as a completely decentralized ‘electronic cash’ system” (2). Edwin Jacobs a writer for the Journal of Internet Banking and Commerce also writes about this in his article “Bitcoin: A Bit Too Far?” The main point here is that there is no central bank controlling the Bitcoin currency (Jacobs 2). Instead, each user plays an equal role in the

Fiat money is any legal currency that is not backed by a physical commodity, nor does it require a substantial value for the material. Fiat money is referred to those currency does not use some valuable kind as the currency standard. Fiat money does not represent the actual things and goods. Virtually, all paper money in the world today is fiat money, along with most coin currencies. Next, as same as money, we used today. That the government retains more and a suitable amount of the commodity, which that is more valuable just as much as the total money amount. In the tenth century, the Song Dynasty in China maybe is the first of fiat money. Unfortunately, fiat money is an money without any uses, so that’s means fiat money is fundamentally

One of the pros of using bitcoin is that the cost of sending or receiving money is trivially low compared to any other ways of sending money abroad. Bitcoin service generally has lower fees and thus a money transfer cutting-edge technology than MoneyGram, Western Union, PayPal, Credit Card, and Transfers.

Blockchain, the future of transactions. It worries many people with confusion, but others embrace it as the future. “In the financial markets, trades happen in a fraction of a second. But actually exchanging the assets and payments can take days, involving multiple banks and clearinghouses. That can lead to errors, delays, added costs and unnecessary risks” (“Blockchain: The New Technology”). Todays system is inefficient. It can take days for a transaction to be verified, in that amount of time stocks could plummet and the market could crash. The extra time makes for more unnecessary risks. Blockchain is a giant ledger that registers all types of transactions. These transactions can include anything from selling plants to selling houses, verified in a matter of seconds. Blockchain is virtually unhackable and is very reliable. Blockchain is so secure because it is decentralized, it utilizes cryptography, and it is run by its users.

The bitcoin is a semi-recent advancement in economic technology, originally a program created by an anonymous internet user, which succeeds in bringing about a decentralized and private currency, unaffiliated with any government. Usually, currencies are units of exchange produced by a government for use in a local or even global economy. The availability of the currency is decided manually by the government, which may limit production to keep the value of the currency from changing on the global market. Bitcoin is a so called cryptocurrency, which relies on its own program to decide production, and gains value from the time being invested in its existence. For this

The main problem with the Bitcoin is the uncertainty of its volatile value. In the last few months, the value of Bitcoin has been cut in half, in the face of questions about security issues and concerns about new regulations. The idea of a currency not being checked and balanced by any supranational organization or national government leaves many to fear the Bitcoin, not knowing if they invest today, if their money will be there tomorrow. In fact, the United States government hold the biggest amount of Bitcoins at 144,000 coins after the F.B.I seized it from Silk Road, the now-defunct digital market that prosecutors say aided drug deals and other illicit transactions. So if the

Drug production and trafficking is a widespread issue that has proven to be extremely difficult for individual governments. The black market for illegal drugs has become almost omnipresent in modern society as the production and distribution of drugs has evolved into one of the most profitable industries. United Nations (UN) reports from 2003 value the illegal drug market to be approximately $320 billion and growing.

Drug trafficking is the worldwide illegitimate trade, which involve the cultivating, producing, distributing and the selling of materials that are subject to the drug proscription laws. There are a number of drugs which are trafficked into the United States. These include, but are not limited to heroin, marijuana and cocaine. The system of drug trafficking in the United States as well as in other countries and continents remains very complex. Although the government and non-government bodies have set important laws to exclude the practice, drug trafficking has been a disturbing problem for many years. Many people who venture into this dangerous and prohibited business do it in search for money. It has been a belief that drug trafficking gives people a lot of money. As a result, people are ready to take the risk and get into the business in trying to better their future. The punishments for drug trafficking vary from one continent to another or from one country to another.

Making payments with bitcoins is similar to sending cash digitally, and users can do so through their computers or mobile apps. In that aspect, it is similar to making online purchases with conventional currency systems. It can help both businesses and consumers to save money. The use of bitcoins involves lower costs. Businesses who accept bitcoins are able to avoid credit card fees. This cost saving can be passed on to the customers because lower costs allow businesses to reduce their prices. Offering lower prices can help businesses to increase sales in the both the short-run and the long-run. Furthermore, consumers might prefer to buy from businesses that use bitcoins due to cost saving. Therefore, using bitcoins may help businesses in attracting more customers and increasing their customer base.

Unlike dollars and Euros, bitcoins are wholly virtual. They are being touted as substitutes for normal currencies in the years to come. This is evidenced by the growing number of organizations and business establishments that are accepting cryptocurrencies. Bitcoins are the most popular cryptocurrencies. This virtual currency was created in 2009 by a mysterious figure only identifiable as Nakamoto Satoshi. His true identity has never been known. Bitcoins have appreciated in value from the cents they were worth in 2009 to the current of $20,000 apiece in December 2017. Bitcoins are decentralized as they are not regulated by any central authority. It represents a peer-to-peer method of payment where a