Bitcoin Is A New Form Of Currency

The dramatic development of blockchain technologies seems to be a double-edged sword. Although cryptocurrency leads to innovative payments and transfers, it may be a tool for criminal usages. In terms of benefits, bitcoins have ability to solve double-spending problems and Ethereum’s smart contract is used for sharing economy. On the other hand, because there is no legal which is responsible for Bitcoin trading activities, Bitcoin is considered as one of the greatest risk to national security through illegal operations involving to financing of terrorism and extremism (Vovchenko et al, 2017). In 2013, for example, the U.S government closed down the largest website, named Silk Road, involved to illegal goods trading, in which there is 1.5% of Bitcoin was used for trading illicit drugs and counterfeit

Currency acts as a store of value, a medium of exchange and a unit of account. Physical currencies are promissory notes payable to the bearer on demand. Digital currencies are internet-based form of currency. They represent both developments in payment systems and a new type of currency. Digital currencies, in hypothesis, serve as money, at present day they act as money to a small amount of individuals and institutions. It has been often questioned as whether the decentralised digital currency, such as Bitcoin and Litecoin, will emerge as the preferred method of payment for Internet Services or will remain a superficial payment method compared to well established existing payment systems.

The use of Cryptocurrency has become more prevalent across the globe. Regulation seems like the next logical step in evolution and legitimacy, but this will ultimately lead to large financial institutions and government establishing the standards and determining the value. At that stage cryptocurrency may still be categorized as a decentralized form of currency, but the behavior will be that of a centralized system overseen by the same institutions who govern our monetary systems today. Many people think of cryptocurrency as a new and innovative payment system, yet it’s much like forms of money that the world has seen in the past, before governments and central banks exerted their control. In many ways, cryptocurrency completes the cycle started when money began to take hold in the Renaissance, when value and control was not determined by any government but rather by the issuers of notes and the customers who used those notes. One of the most popular cryptocurrencies available is Bitcoin. Bitcoin is regulated differently in the People’s Republic of China (PRC), Canada, and the United States, and no country has currently backed Bitcoin. Launched in 2009, and founded by Satoshi

As the year of 2018 approaches, technology is advancing quickly to come up with new software’s and devices. These new inventions are helping individuals and corporations succeed in their path to innovation. With new devices like the iPhone X, people are starting to get a feel of what the future looks like. Apple brought out the device with features like face recognition and other great qualities that might make people say, “This is the future”. Devices like the new iPhone are leading to new lifestyles with less effort needed from the individual; however, other devices and software have been developed to improve life on a global level. For example, virtual currency is the leading innovation available now that is creating a big change on the global scale. It is reshaping, improving, and building economies for many countries, thus leading to the change of the overall world economy. It is rapidly rising since the population of the world is growing more aware of its existence and utilities. One can safely say that virtual currency is making positive change to the world and is building the structure of future monetary systems.

Bitcoin is a disputed virtual currency, mainly due to its links with the notorious black market. ‘In October 2013, the US Federal Bureau of Investigation shut down the Silk Road, an online black market, and seized 144,000 bitcoins worth US$28.5 million at the

Before covering the advantages of Bitcoin payments, let’s take a look at the roots of this technology.

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 crisis had exposed many of the shortcomings in the existing financial and political systems, creating a large desire for alternatives (Popper IV). Many saw Bitcoin as the answer as it was free of any sort of central government.

Not everyone is optimistic about the future of Bitcoin. Its volatility, lack of regulation by the various regulatory agencies, and its use for financing of illegal activities have created many doubters.

The first form of cyptocurrency, Bitcoins are the first type of digital currency that is both created and subsequently managed by cryptography, rather than a central authority (Kinsella 2013). The Bitcoin architecture was outlined in a research paper by Satoshi Nakamoto, which led to the creation of a decentralized network, allowing the peer-to-peer digital currency to be owned and traded (Smith 2013). After several years of development, Bitcoin was launched in 2009, and exists solely within the Block Chain (explained later).

Bitcoins, referred as magic internet money, the new currency of the future; the question is when is it going to become socially acceptable? Created in 2009, the Bitcoin is forcing world governments to react to the phenomenon of digital currency. The Bitcoin, valued today at $480.42, making it the most valued currency around the world by several hundred dollars. If this is true, why does no one invest nor pays attention to the threads of the miracle Bitcoin? Warren E. Buffett, investing titan, commented one day on the Bitcoin stating that it’s just a “mirage” and that any person thinking to invest in it should “stay away.” Many other Fortune 500 companies like J.P. Morgan and Wells Fargo have also taken opposition against the Bitcoin with the same reasons as Warren Buffett himself.

The idea of Bitcoin and other virtual forms of currency have sparked a great deal of interest lately amongst the public. In addition, virtual forms of currency have become a media sensation. It’s a new elusive concept that is gaining popularity amongst financial consumers. Over $5 billion in Bitcoin and other decentralized currency are currently in circulation. However, how many people actually understand what the concept of Bitcoin is, or other decentralized currency? Even many who own Bitcoin/other decentralized forms of currency and utilize it in their daily transaction often time do not know how the system work. Recently there were new stories of government interference with Bitcoin businesses. Most consumer have no understanding of why. This general writing requirement attempts to explain the background of Bitcoin and decentralized currency; it further defines why Bitcoin is in popular use; and finally the paper calls for United States government to take an active role in the international regulation of this growing financial scheme.

Bitcoin has no value of its own contrary to what many argue. Its value is derived by the number of people adopting it and pouring their money into the BTC ecosystem. Investments by deep-pocketed investors like Winklevoss twins (estimated BTC stake around 11 million USD back in April), Chamath Palihapitiya, ex-Facebook executive and early employee, who has already dropped $5 million into BTCs and has plans to invest another $10 million are the reasons for skyrocketing price of bitcoins [3] [4]. Add to this, the publicity and trust in the system they are generating. Bitcoin's future potential was a hot topic this October at emTech, an MIT conference on emerging technologies [5]. Considering BTCs more as a start-up rather than a currency, its growth curve makes more sense but unlike a start-up it’s not generating any value itself but gaining people’s trust. And that’s what gives it value.

Due to the rapid development of a cryptocurrency environment, the value of Bitcoin is becoming even stronger. Unlike other digital currency, Bitcoin is constantly showing its positive dynamics in terms of price and public acceptance. It becomes obvious after recent exchange rate increase, which is 1113.5$ now according to CEX.io.

Nowadays, the Internet has implemented great impacts on people’s life, and it also has changed the business world significantly. In order for companies to cope up with the changing customer demands, they must adopt new technologies not only to support their business functions but also to reduce paper works, reduce costs, and provide better services. Bitcoin is a currency of the Internet, distributed, worldwide, decentralized digital money that be developed as a new payment method. In Australia, the regulator has defined Bitcoin as property instead of currency for accounting purposes (King, 2015 February). Although Bitcoins are not materially existed, it can be exchanged for goods and services at places that accept it, the same way you would give someone a dollar for a cookie.