Essay On Bitcoins

The mystery of what cryptocurrency really is and what the future holds for it is another trait of Bitcoin that resembles the buildup of the Tulip mania bubble. A sense of mystery was created from the colors being unknown for the tulips that were cross bred which assisted in pushing up the values of tulips. With the U.S Securities and Exchange Commission (SEC) and Commodity Futures Trade Commission (CFTC) taking opposing views on whether Bitcoin is a commodity or security, the air of mystery due to weak regulations has contributed to its price instability. It can be expected that the bubble will burst as Bitcoin will increase in the near future. When? That’s the million dollar question. As the Bitcoin market surges, it has attracted increased public attention and everyone wants a piece of the pie. As a result, the market value of Bitcoin increases exponentially. There are approximately 16 million bitcoins in circulation today from a total of 21 million. With 5 million or less left to be mined, it makes Bitcoin mining very competitive

Consumers tend to be comfortable with virtual transactions and they also prefer payments using electronic systems to cash. There is an increase of accessing personal information to online platform (DeVries, 2016). However, the awareness of customer is likely to be a limiting factor for cryptocurrency to adapt into monetary market. According to Consumer Cryptocurrency Survey, there is only 6% of participants “very” familiar with cryptocurrency, particularly Bitcoin (PwC 's Financial Services Institute, 2015).

Cryptocurrencies are “a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank” (google dictionary). Cryptocurrencies are very efficient, reduce risks, and simplify/accelerate legal relations. Furthermore, cryptocurrencies have more security than a normal bank and have no use of credit or debit cards. If a legal problem were to happen were a hacker where to hack into an account and steal someone's money, then the administrators can trace the money to the person who stole it and give them back their money. Cryptocurrencies as time goes on also become more and more valuable like for example $100 worth of bitcoins in 2010 is now worth 75

Whatever the eventual outcome of the current market volatility, one thing is for certain: Things will never be the same again--nationally or globally. Something is definitely up, or down, and those who have wealth to invest would do wise to heed the warnings of many top investors. Choose wisely when investing--if at all.

I am still yet touched or get involved into the cryptocurrency currently, maybe will give a try if Bitcoin drop back to the dip level, about $700.

Demand for bitcoin has grown in eight years to a market capitalization of more than $40 billion.

We take the position that digital currencies are a fad. As argument, we try to clarify the definition of currency in general and explain what a "digital currency" really mean. Than we examine the arguments for the digital currencies and at the end we present the evidences of perils of digital currency.

An additional growth is that companies accepting the blockchain modern technology are finding methods to maximize this trend. Kik, a chat application that located tremendous success when it introduced but after that resisted market behemoths like Facebook, recently increased $125 million with preliminary coin offering (ICO). This stood for the introduction as well as launch of a brand-new cryptocurrency that has the

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.

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.

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.

Litecoin – is the second largest cryptocurrency in terms of capitalization in the market today. It reached a market cap of $1 billion by the end of the year, 2013. The litecoin was primarily created as an improvement to the Bitcoin, the market leader. Among the added features are - mining capabilities with the use of an ordinary desktop computer, faster processing time (2.5 minutes versus 10 minutes for Bitcoin), and a maximum limit (84 million versus 21 million) which is four times more than Bitcoin, its leading rival.

It’s important to note that since Bitcoins are produced without the involvement of governments or banks, they avoid taxes. Lastly, the cap of 21 million bitcoins has driven the value of a single coin up as shown by the below graph depicting expected growth of coins over time.

Blockchain Technology supports a distributed ledger system and maintains a growing list of records that are confirmed by the participating people. In blockchain framework, each transaction is recorded in public ledger and stores the information of the transaction. In Current scenario, all the currency transactions between persons or entities are centralized and controlled by some other organizations (Interoperability team). Transferring money will needs bank and merchants who process the payments and they charge fee for each transaction. This is the common phenomenon in every domain and this complexity is simplified by Blockchain technology by creating decentralized environment where no interoperability team is required to control the