United States Dollar and Currency Essay

621 Words Dec 7th, 2013 3 Pages
1.
International Business Issue
- Can Bitcoin be a stable currency for international business?

Definition, Application, and Prospection

1)What is Bitcoin?

Bitcoin is an open source peer-to-peer payment network and digital currency introduced in 2009. It is the first decentralized digital currency. It is the digital coin that you can send through the internet. Compare to other alternatives, Bitcoins have a number of advantages.
Bitconins are transferred directly from person to person. This means that the fees are much lower you can use them in every country. Bitcoins are generated all over the internet by anybody running a free application called a bitcoin miner. Mining requires certain amount of work for each block of
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It is almost 10000%.

The stability of bitcoin as a currency is still controversial. Thus, I would like to say that though bitcoin has a lot of advantages, it has some definite weaknesses to be a substitute for currencies. Firstly, there have been lots of different form of virtual currencies so far. And they all got shrunk. If someone is a good programmer, anybody can make a new digital currency. If so, the advantage of bitcoin which is that there is a limit for issuing amount will disappear.
Moreover, existing currencies are based upon each nation's control. Currency economies cannot exist outside of taxation systems. As most all of the nations are operated by tax, governments will not permit the free trade of electronic currency which is operated outside of taxation system. Actually, the China Central Bank announced that as the bitcoin is not a genuine currency, it cannot have a legal status. They also said that any financial institution or company cannot put a price of bitcoin and guarantee products that related to bitcoin.
South Korea government also stated that the bitcoin is a product which cannot be protected by Korean laws. Because the bitcoin has a possibility to be abused in many ways. It is against the Korean real-name financial system and can be used as a money laundering.

Obviously, the bitcoin is one of the new flows in international business. However, it has many limits to be a substitute for real currencies. Economy cannot be detached
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