Bitcoin has become a hot, controversial topic, but what is it and how is it used? Bitcoin is one of several digital currencies, but, as of 2014, it is the most popular one. It is a form of money, but for online use only. Bitcoin is the system of how payments are made, while bitcoin refers to the unit of online currency. Unlike traditional currency, Bitcoin is not regulated by a central organization.
Even though it's been around for more than five years, not too much is known about the origins of Bitcoin. In 2008, a Japanese programmer or programming group using the pseudonym Satoshi Nakamoto published a report about digital currency. The following year, Satoshi Nakamoto presented software that would create the first Bitcoin network and currency. However, by 2010, Satoshi Nakamoto disappeared from the online community.
How Bitcoin Works
In the simplest definition, bitcoins are online money, transferred from one person's digital wallet to another. A new user must install a Bitcoin wallet on their mobile phone or computer. Once the Bitcoin wallet has been installed, a Bitcoin address is generated. The payment transaction is similar to email with one exception: Bitcoin addresses should only be used once. A user can generate as many Bitcoin addresses as needed.
Users earn bitcoins by accepting them as a form of payment, trading, and completing tasks on various websites such as BitVisitor or CoinWorker. Another way to earn bitcoins is through a process called mining. Mining is how new Bitcoins are created. The process is similar to mining for gold. Bitcoin miners solve cryptographic puzzles to earn bitcoins. Like gold, there is a finite number of bitcoins. It is predicted that the last bitcoins will be mined by 2140. As of J...
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... could get up to 20 years in prison if convicted. A month after Shrem and Faiella were arrested, two men in Florida were also arrested for using Bitcoin currency in an alleged money laundering scheme. The case was believed to be the first involving Bitcoin currency in the state of Florida.
The recent arrests and charges involving Bitcoin throw a spotlight on concerns over digital currency such as a lack of regulation, online security and the fact that transactions are anonymous. The bitcoins also have no fixed value, a key difference with traditional currency. Therefore, no one can give the value of such items as a cup of coffee in bitcoin. Supporters love the no fees, no bank account, and no regulation of Bitcoin. However, critics of digital currency argue that it's the lack of regulation and anonymous transactions that are putting users at serious risk.
Bitcoin is a digital currency that was started in 2009. It is a digital representation of currency with no actual tangible representation. Bitcoin, commonly abbreviated as BTC or XBT, is distributed worldwide, decentralized digital money (also called cryptocurrency). It is decentralized, meaning it is not controlled nor backed up by any government, country, or individual entity. Unlike traditional currencies, such as dollars and euros, bitcoins are issued and managed without any regulation from any central government. Thus, it is more resistant to inflation and corruption. A Bitcoin derives its value basically from the demand and usage of bitcoins, similar to a stock. Bitcoin doesn’t derive its value from the government; it derives its value from the people. The more that use/accept it, the more of a demand there for it, and the more valuable it becomes. Bitcoin is controlled by the people; you are your own bank. Transaction terms are determined by the user. Bitcoins can be bought with credit cards, PayPal, bank transfers, or even going to a local bitcoin exchange and buying them with cash. A person can acquire bitcoins as a payment for goods or services, purchase them with real money at a Bitcoin exchange, exchange bitcoins with someone you know, or earn bitcoins through performing mining services for the network. It has value and can be exchanged for real physical money, it’s valued exchange rate goes up and down like a stock, and it’s traded online like PayPal, but it is none of these. It’s widely considered as the future of world currency, but also scrutinized as a gateway for illegal activity. So which is it?
Goodale, Gloria. "Rise of Bitcoin: Is the digital currency a solution or a menace? (+video)." The Christian Science Monitor. The Christian Science Monitor, 23 Nov. 2013. Web. 25 Nov. 2013. .
The topic that I’m going to write about in this paper will be on the electronic currency released in 2009 known as Bitcoins. Bitcoins is a type of currency that entails computer software to be used with one person exchanging with another person for a different kind of trading option such as the US dollar, products or services. There is a fourth reason why Bitcoins can be exchanged which is done when a person is mining, that occurs when a participant acts as a mediator for transactions whereas mediator approves and documents. Bitcoins is one of the largest and first electronic currencies ever created by any developer including the makers Satoshi Nakamoto. Bitcoins doesn’t meet the characteristic guidelines to be considered an actual type of currency, though the US Treasury recognizes it as a type of decentralized currency in that no person or organization including governments oversees the transaction of Bitcoins.
Imagine a world where there are no banks or even a need for wallets. This may sound like a nice freedom at first until illegal activities sky rocket; including the drug and sex trade. The economy will crash and millions of people will be left high and dry with a worthless currency. This type of chaos will not only devastate the United States but will also be seen world wide. With the way technology has been advancing this could be a very plausible future, thanks to Bitcoins. Bitcoins are a new form of digital currency in which the consumer uses and stores all of their money on a computer. This allows for quick trade, not only within your own country but others as well (Ethley par. 2-4). Although there may seem to be great benefits that Bitcoins offer, they are actually more damaging then beneficial. Bitcoin use will have a huge negative effect on the economy, they are filled with security issues, and support criminal activity due to their anonymous nature.
“The Economist Explains, How Does Bitcoin Work?” The Economist (2013): n. pag. Web. 08 Apr. 2014.
This case illustrated that there were real consequences to white collar crime. In addition to paying the fifty million dollar fine, he relinquished another fifty million dollars of his illegal trading profits. (He still had millions remaining, however, from his illegal gains.) His actual prison sentence was three years, yet he served only twenty-two months in the federal prison at Lompoc, California, which was known to have a “country-club” atmosphere.
Further, there exist other elements that characterized Bitcoin and crypto currency. These are; there is lack of regulatory management and oversight. This mean that the currency has got what is known as anonymity which results from shortage of oversight. In this case, it means that once the currency is in the market, government and legal roles fail thus putting the crypto currency out of the currency market. The crypto currency litter the black market due to lack of this regulatory.
The documentary Banking on Bitcoin from director Chris Cannucciari was a documentary released in 2016. Throughout this documentary Cannucciari asserts that the cryptocurrency Bitcoin is the future. Using Bitcoin experts and enthusiasts, this documentary is working to persuade people that Bitcoins peer to peer non-centralized system is the future and should be used over traditional banking methods. The targeted audience for this documentary is businesses, government officials, and anyone interested in the Bitcoin technology. The tone of this documentary is ardent while also informative.
Bitcoin is a digital currency, similar to cash due to the fact it is instant, however, is not managed or controlled by a central government or organization. Instead, the network is run on thousands of independent user’s computers. None of these computers have more control over the network than any other computer. The network that Bitcoin was founded upon is based on 40 years of research in cryptography and over 20 years of research in cryptocurrencies by thousands of researchers around the world. Bitcoin answered what was thought to be an unsolvable math problem known as the Byzantine Generals Problem.
But Bitcoin (capitalized as a concept, lowercased when referring to units of the currency, according to American Banker) is another animal entirely. It is the first and most famous of a large and growing family of so-called “cryptocurrencies.” Others include Litecoin, Feathercoin, Songcoin (“designed for The Music Industry”), Auroracoin (Iceland only) and Dogecoin (“the fun cryptocurrency”)—but Bitcoin is by far the largest. Its origin is traced to a 2008 paper written by the pseudonymous Satoshi Nakamoto. Newsweek recently claimed to have located the real one, but he promptly denied it, so the whole thing remains quite mysterious.
probably done this before. I assume he will be put in jail for a little while,
... punishable up to 18 months in jail along with a $5,000 fine for each of this 6 counts (“Former”). In this case Walker allegedly operated in a fashion similar to the example given above in regarding self-dealing. Whether the work was performed in a manner that complied with all regulations, the act of self-dealing in itself is unethical and lead to the investigation by the OEC.
The marriage of Bitcoin and sports betting created a new medium through which winnings can be attained while taking part in some of the most anticipated sporting events in the world. By applying the basic concept of Bitcoin, sports betting is simplified and matches the efficiency of the modern payment system that is the perfect alternative to conventional payments.
The invention of money is perhaps one of the greatest achievements of human civilization. From the very beginning of society, people have used money to circumvent the difficulties of bartering and to foster trade and commerce. Since then, money has come a long way. No longer do we need to rely on silver coins, cocoa beans, or even anything of intrinsic value to conduct our business; today, we use paper currency, which is convenient and easy to carry around. But slowly, we are moving into the digital age of money, an age in which less of our money is actually tangible and more of it is just data on a computer server.
Firstly, an insight into crypto-currencies, what they are and how they can benefit the worlds economy. A crypto-currency is ‘digital medium of exchange’(RhettandLink) - managed through extensive encryption techniques known as cryptography. Comparable with fiat money, no group or individual can stunt, increase or abuse the production of crypto-currencies. No economic systems can regulate the production or value of the currency, the system that crypto-currencies are based upon was created by Satoshi Nakamoto - purposely creating Bitcoin which the practise of fractional reserve banking would be virtually impossible. Bitcoin is currently the most successful crypto-currency to date - created in 2009, this anonymous decentralized digital currency has been the target of several raids and hacking sprees; the media are contemplating the significance of Bitcoin in our current worlds economy. Whether it has potential of overruling fiat-currencies or if it’s just a puerile project created by the aberrant Satoshi Nakamoto.