Virtual Currency : A Political And Economic Spheres

The buying and selling of illegal black market in drugs and pharmaceuticals now heavy depends on the internet. Most transactions and sellers are on the deep web, part of the internet a level beyond our regular use of google and such. This provides secure and confidential communication lines by encryption of computer IP addresses using Tor anonymizing software or web proxy to the Tor network (Van Hout, par 3). Another benefit of it is the Bitcoin digital currency which also helps ensure that financial transactions can not be traced. Through this process seller and buyers found an easier and safer way to do their business.

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

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

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

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

Disruptive technology comes in many forms; however, the focus of this essay will be blockchain technology. Blockchain technology is an ‘incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value’ . It is a safe method of distributing digital information, whilst protecting the information from being copied . Blockchain technology is resistant to tampering and is proving to be a cheaper, faster, more transparent and safer form of distributing information compared to traditional ledgers . Information that is held on a blockchain exists as a shared and continually updated database, meaning there isn’t a centralised version of the information, making it much

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.

Bitcoin is a network that enables a different type of payment system it is used a lot for purchasing objects of the dark web and completely digital money. It is the first peer-to-peer payment network that is powered by its users with no central authority or middlemen (someone who buys goods from producers and sells them to retailers or consumers). From a user perspective, Bitcoin is pretty much like cash for the Internet. Bitcoin can also be seen as the most prominent triple entry bookkeeping system in existence.

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.

One of the major controversies around BTC is its legality. While it has not been made illegal up till now, there have been certain instances like shutting down of Silk Road by FBI which do not give positive indications [6]. It should be noted here that the BTC system was not here the main target but the drug dealing which was happening through it. Regulations are not easy to put around because of the core decentralized anonymous nature of bitcoin technology.

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.

Traditionally, currencies have been tied to physical tangible items, such as paper or gold, and provided three functions: a medium of exchange, a unit of account, and a store of value. The earliest published research using cryptography as a basis for electronically transferring cash is from 1982 by David Chaum, a Ph.D. graduate in Computer Science from the University of California at Berkeley. He founded a company in 1990 called DigiCash, which originally sold smart cards for closed systems, such as for highway tolls. In 1994, the company sent the first electronic cash (“ecash”) payment over public computer networks. The history of DigiCash is controversial, but the “ecash” system appears to have been centralized and proprietary and no corporate partnerships were formally established. Other companies, such as Dexit, InternetCash, Qpass, Flooz, Mondex and NetCheque, performed similar online payments, but none of these companies gained meaningful traction due to the complexities and expenses of navigating the technological, economic, legal, political, social, and cultural challenges in virtualizing currencies.[ ][ ]

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)