Bitcoin Essay

Cryptocurrency is a digital asset that serves as a medium of exchange with no central authority and was created to prevent the issue of double spending. This problem is solved with the use of blockchains where miners confirm transactions on a public ledger. As of today, there are over 1,000 different types of cryptocurrencies, and at least 600 of these have listed market caps of over $100,000. Bitcoin, Ethereum and Litecoin are top cryptocurrencies trading today with their combined market cap topping $331B. Bitcoin, created in 2009, is the biggest cryptocurrency and has recently reached a net value of over $270 billion, with much of its growth being in the last few months. This has led to much

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

Some people only knew blockchain as the causal technology behind the always controversial digital currency Bitcoin. Yet, blockchain technology is so much, much more; it's unbelievably innovative and its potential is extensive to say the least. Much like the internet of today, there’s no need for you to know how this technology works to use

Bitcoin is a convertible virtual currency and cryptocurrency that can be exchange for real currency and has its equivalent in real currency . Bitcoin is also a revolutionary technology that allows people or institutions to transfer funds instantly, securely and without intermediaries. The way banks transfer money today is archaic. International bank transfers can take up to a week. By using a digital currency as a bitcoin, bank transfers could be made instantly, cheaply and safely. In fact, these transfers could even occur without using new currencies . In addition , Each year, migrants from developing countries send more than $ 500 billion in remittances, which exceeds foreign direct investment. With a total amount of 6 to 10% for international transfers for the sending of $ 200, the burden on some of the most vulnerable people in the world is considerable. Digital currency has the potential to help these transfers become fast and cheap. By using virtual currency, migrants could even send money directly to their families by mobile phone, the only remaining charges being those charged by currency exchanges. While traditional money transfer companies must provide capital to offset the delays in international money movements. The reduction of these costs could facilitate the entry and implementation of new transfer corridors . Cryptocurrencies could take over in the long term.. It could be faster and cheaper to use cryptocurrencies to transfer money internationally than using traditional methods

Many people today have no idea what actually exists on the internet. We’re only limited to our basic search engines such as Google, Bing, and Yahoo which actually show just the surface of the internet. Most credit cards or information that is stolen, criminals can sell on the dark web which makes it easy for criminals to perform certain transactions that are illegal an outside of the law without being caught. Most transactions that are performed on these encrypted sites is through bitcoin. Bitcoin is a currency that was created in 2009 by unknown person under an alias Satoshi Nakmto. Bitcoin gets rid of the middleman which is essentially banks and are able to perform transactions anonymously. Usually one bitcoin is equivalent to 4,655 U.S. dollars.

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

We hear a lot of chatter about Blockchain changing the world and disrupting all sorts of financial institutions. While that's cool and all, we need some details. How will this technology turn society on its head? Thankfully, some of the top minds in the world are on the case. Here's what they have to say about it.

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.

The paper talks about the invention and growth of cryptocurrency, its accounting treatment, audit implications combined with tax implications, and analysis of the potential problems and the direction the technology is headed in the future. This paper also presents the accounting rules for foreign currency and investments. Bitcoin was a software-based online payment system. Also, it was designed to be a virtual currency that would remedy the need other traditional currencies encounter when used online, a need for a third party to verify the transaction and ensure the

First, if it's still an international concept for you, cryptocurrency is any of a number of digital money that can be made use of for online deals without intermediaries such as financial institutions. Without financial institutions, cryptocurrency can be traded and made use of for business between 2 or even more individuals without the oversight-- as well as expense-- of those intermediaries.

There are a few advantages that Bitcoin offers that makes different from the rest of the crypto currencies and non-digital currencies.

Bitcoin (BTC), a cryptocurrency, is a type of digital currency which was introduced in 2009 by pseudonymous developer "Satoshi Nakamoto". Since then 12 million bitcoins have come into existence with a current market cap of around 8 billion USD [1]. The algorithm is designed as to allow only 21 million BTC to come into existence ever. Bitcoin uses peer-to-peer technology to operate with no central authority or banks; managing transactions and the issuing of bitcoins is carried out collectively by the network [2]. Bitcoin is not the first attempt. But none have managed before to take off so dramatically and with such wide adoption to achieve escape velocity. The questions which are important now are how the bitcoin managed this success in

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.

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