Currency And Bitcoin : The New Exchange System For The Tech World

Perhaps most importantly, the Internet offers a new way of doing business. A virtual market-place where customers can, at the push of a button, select goods, place an order and pay using a secure electronic transaction.

Technology has changed the way we do almost everything. That now includes how we purchase items. Bitcoin, a relatively is a new currency, was created in 2009 by a mysterious unknown person using the alias Satoshi Nakamoto. Bitcoin transactions are made with no intermediaries— meaning, no banks or transaction fees. Additionally, there is no need to give your real name, thus allowing you to make purchases without an electronic footprint . In addition, international payments are easy and cheaper because bitcoins are not tied to any country or subject to regulation. This case study aims to take a deeper dive into the advantages and disadvantages of accepting Bitcoins and the impact it can have on companies, specifically pertaining to the large online retailer Overstock.

Institutions have failed to understand that bitcoins and blockchains have symbiotic relationships. The coin is an incentive mechanism to maintain security. Until the invention of Bitcoin in 2008, security and decentralization seemed like contrary concepts. Traditional models of financial transactions lie on centralized control to provide security. The architecture of traditional financial network is built around a central authority. As a result, security and authority had to be vested in that central actor. The resulting security model looks like concentric circle with very limited access to the center and increasing access as we move away from the center. However, even the most outermost circle, cannot afford open access. The entities near the

A computers have become more mainstream, more and more operations are conducted online. From online bill pay to simple searches, as one would do with the yellow pages, to online shopping, the Internet has helped shape the way computers are used today. With the Dotcom boom of the mid-nineties and early 2000s, ecommerce and e-business really started to take off. The Internet has given way to some of the biggest economic booms in history. The invention of smartphones and tablets has allowed for consumers to have instant access to the Internet, right at one's fingertips. While e-business is becoming more mainstream, and has its advantages, e-business also has its disadvantages.

Bitcoin \footnote{Through out this thesis, Bitcoin (upper case) refers to the Bitcoin system while bitcoin (lower case) refers to the currency coin.} is a decentralized peer to peer electronic payment system based on cryptography or more accurately, a crypto-currency. The Bitcoin economy has grown at an incredibly fast rate with a current estimated market capitalization of about 3.5 billion US dollars since its introduction in 2009 \citep{bitcoinwatch}. While Bitcoin is still in its infancy and more of an experimental than an accepted currency, the trends suggest it has the potential to shape the future of electronic payments.

The online payment marketplace is experiencing an explosion of innovative ideas, plans, and announcements, which one commentator has likened to a “goat rodeo”, a chaotic situation in which powerful players with different agendas compete with one another for public acceptance, and above all, huge potential revenues. Others liken the payment marketplace to a battle among the four platform titans Apple, Google, Facebook, and Amazon. Each of these titans have their own versions of a future payment system that challenges the other players. And let’s not forget PayPal, the reigning power in alternative online payment, or the credit card companies who process over 70% of online payments, or the

Operating a business has always been reliant on staying on top of emerging technologies. Today, the technology driving a business to success is the Internet, which can be used to buy and sell goods and services. This process of buying and selling online is referred to as e-commerce. E-commerce and its use of the Internet will sell more products, increase revenue, and shape the future of production for businesses. It is also changing how the government regulates online commerce. E-commerce is progressively becoming the way that many people shop and changing the way businesses operate, ultimately changing the world of business.

The traditional method of doing business has always been face to face trading. It is a medium for both customers and businesses to negotiate and purchase and sell goods and services. However, with the progression of the technology age, businesses and customers alike are finding convenience and benefits through the use of e-commerce. Electronic commerce (e-commerce) involves online transactions and the trading of goods and services through the Internet, without time and geographical barriers (Network Solutions, 2014). This could include retail sites, large online music stores such as iTunes or business to business (B2B) transactions between companies. This is a new emerging technology and has brought many advantages (Network Solutions, 2014).

Do you need a digital Bitcoin wallet for your mobile device or desktop computer? To understand what a Bitcoin Wallet is, you should first learn about the Bitcoin. It is defined as a digital currency that is transacted virtually rather than tangibly. Bitcoin was founded in 2009 by Satoshi Nakamoto, a mysterious entity that abandoned their venture in 2010. Bitcoin was the first currency to use cryptography, and there is no match for it until now. Cryptography is all about encryption of data and communication when being conveyed online to ensure maximum security.

Around 1,200 years ago, the pound sterling was created. Serving Great Britain and its territories to this present day, it is one of the most traded currencies in the world. Some 1,000 years later, the dollar came in to existence followed by the Euro at the turn of the millennium. In 2008, a new paradigm, Bitcoin, reared its head into the world economy. Bitcoin sets itself apart from the aforementioned currencies because it doesn’t exist; it is one of many digital currencies, albeit the most popular by far. Bitcoin is a private, peer-to-peer cryptocurrency that is slowly gaining prominence. Sitting at over 16 million bitcoins in circulation, the question must be asked whether Bitcoin should be seriously considered as a viable currency as it

The bitcoin and its underlying technology known as the blockchain, are currently being recognized as the beginning of a new “industrial revolution”. This technology has resulted in making the bitcoin the first-ever decentralized currency in existence. The digital currency itself is created as a reward in a competition in which users offer their computing power to verify and record bitcoin transactions into the blockchain. This activity is referred to as mining, and successful miners are rewarded with transaction fees and newly created bitcoins. Besides being obtained by mining, bitcoins can be exchanged for other currencies, products, and services. When sending bitcoins, users can pay an optional transaction fee to the miners.This may expedite the transaction being confirmed.

E-commerce (buying and selling) and e-business began in the 70’s, with businesses having the ability to send documentation back and forth. The public was not introduced to this until the late 90s, as the right security to encrypt credit card information needed to be created and perfected. In 2000, many

Bitcoins are increasing in popularity as a banking option with US gamblers and gambling websites.

To start off primarily, Bitcoin is a digital currency as opposed to physical currency that we’re accustomed to and use in our daily life. Straight off their site, Bitcoin is described as a pseudo-anonymous, P2P technology operating with no central authority or banks, it’s open-source, public, owned by no one and open for everybody to take part; but what does that all mean? “Bitcoin is the leader in a new generation of emerging currencies known as “cryptocurrencies” which aim to, among other things, facilitate the movement of money electronically while still maintaining a sense of privacy,” (Hobson)

Electronic commerce, or e-commerce has developed exponentially in the last few years and has left some in the cold. The majority of people think e-commerce is just about buying and selling things over the Internet like through auctioning sites such as E-Bay and U-Bid. However, E-commerce is a broad term describing the electronic exchange of business data between two or more organizations' computers. Some examples might be the electronic job applications, on-line services like America online, and on-line billing that automatically pays specified bills each month so you don’t have to mail a check. E-commerce also includes buying and selling any item over the Internet, electronic banking so you can transfer funds between