Up until the advent of bitcoin, there existed no method to conduct pseudonymous transactions on the Internet. Pseudonymous or anonymous transactions enable the possibility of money laundering and illicit trading and as a result, bitcoin has attracted the interest of policymakers. Such has been the interest courted by this technology that both the US Department of the Treasury and the Department of Justice have made official statements regarding the use and regulation of virtual currencies such as bitcoin. Through this paper, I would like to discuss the motivation behind creating a protocol like bitcoin, the advantages of using such a protocol, potential pitfalls, issues concerning the legality of virtual currencies and use these to examine the sustainability of bitcoin, and its future iterations. This paper has been divided into four sections.
Bitcoin is independent from the control of governments, corporations, or other centralized authorities. This feature tends to appeal to people to use bitcoins for trading. But, it does not enjoy the security and protection which these large bodies can provide, and hence, it becomes volatile and insecure means of trading. Bitcoin needs lots of computers to process and record transactions. This is done by Bitcoin Mining tools.
However we can see, on a economic topic, freedom is not a panacea. Without any regulation, the Bitcoin is leading us to a digital Dystopia—a society full of fraud, money laundering, speculation—and the most horrible thing is, they are anonymous and untraceable. Though the Bitcoin, as a currency, is half-dead, digital currencies still have a bright future, if digital currency transactions are treated as a legal currency under the law, receiving full contractual enforcement in every aspect. Also, law enforcement should become familiar with new technology products, and have the ability to investigate and punish illegal activities. I believe in the near future, with proper but essential regulation, the digital currencies will go further and provide our world with limitless probabilities.
Being untracked is not able to guarantee safety.Users are not insured using cryptocurrency. Taditional electronic money,which can be tracked , have more advantages in this case. Another weak side,which makes digital currency incomplete,is that a bitcoin is not controled by central bank. The payment is realized directly between users without middlemen. It attracts many persons, including thiefs.
But one must question which would they prefer, a hacker gaining access to their bank information or paying a higher fee for a more secure credit card. You may not even be aware but credit card and payment fraud is happening around you everyday. “Payment fraud occurs when someone gains financial or material advantage by using a payment instrument, or information from a payment instrument, to complete a transaction that is not authorized by the legitimate account holder” (Sullivan). It is obvious in this definition that the lack of authorization is a key point in credit card fraud. It is not only the customers and card holders that face challenges, the card issuers and store own... ... middle of paper ... ...es in the future (Koprowski).
The company’s history dates back to the founding of Citibank in 1812, Bank Handlowy in 1870, Smith Barney in 1873, Banamex in 1884, and Salomon Brothers in 1910. Providing consumers, corporations, governments and institutions with a broad range of financial products and services; range of services including consumer banking and credit, corporate and investment banking, securities brokerage, and wealth management. With their legacy in the FX markets, Citi is uniquely positioned to provide active traders with real-time access to the FX market – the world's largest financial market with more than $3 trillion in volume traded each day, according to the latest BIS survey.
FRAUD MANY OF MY FRIENDS and acquaintances are still reluctant to use their credit-card numbers on the Internet, even to buy from well-known merchants over secure connections, and even when their credit-card issuers offer full protection against fraudulent charges. This side of the Internet fraud problem has received much more attention than the other side: that Internet merchants have no really effective way to protect themselves against credit-card fraud. Standard credit-card processing software will give the merchant an approval if the card account is valid, and has enough open credit to cover the sale. For cards issued by U.S. banks, there is an additional security feature called Address Verification System, or AVS. This compares the billing address associated with the card with the one entered by the merchant.
With all of these pros come some serious cons ,such as the fact that there is no separation between the owner in the business meaning if your sole proprietorship business loses money or is said the banks and credit loaners come straight for your personal assets you are also unable to expand there is no room for investors partners or business loans these expansions require a much more formal business structure also in the eyes of partners you are considered less legit and dependable than an LLC or Corporation therefore less people are willing to invest in your company. Similar to a sole proprietorship a partnership can be started easily and is easy when he comes to taxes in filing each partner is taxed according to the amount of sharing the holding the business this also means profits ar... ... middle of paper ... ...s share of profits is distributed. if the members bottom line is not considered earned income because they are not active members and cannot receive the favorable fringe benefit .as a member of an LLC you may not pay yourself wages. After looking at the pros and the cons of several different types of corporations I have found that the only two options that will work best for his type of situation is going to be either a S Corporation or an LLC. both of these options will give him limited liability with full control, allowing the shareholder or the investor to remain simply an investor however in order to enter into an S corporation or LLC both parties must be 100% in agreement.
Consumers are at Risk Pirated software directly impacts consumers because: · It often lacks key elements and documentation, and it always carries no warranty protection or upgrade options. · These untested, counterfeit discs may be infected with viruses that will damage your hard drive and may cripple your entire network. · If they copy software at work, users put themselves and their company at risk by pirating a product protected by copyright laws. Economic Losses When you purchase counterfeit software, you're supporting disreputable companies, not tax-paying, legitimate businesses that provide jobs and salaries to good citizens. The profits from these sales of counterfeit software don't help expand the economy by providing jobs, taxes, and wages, and there is a good chance the profits are funding additional illegitimate businesses.
Despite the many benefits of this service to the bank and its customers , remains a double-edged sword and is not used by all customers, due to the increased distance between the bank and customers can take lack of confidence and in... ... middle of paper ... ...s of online banking: The account can be accessed from any Internet -enabled device in the world. It is faster than traditional banking. Transactions can be competed in seconds . It is a lower cost. Zero cost of stamps or envelopes, ATM charges , maintenance costs , without receiving monthly statements on paper.