Today Bitcoin is having a daily $34,227,224 volume of transactions and a total of 65,394 number of transactions and that gives it a privileged place in the top10 online paying systems with the biggest volume and that also conduct the biggest quantity of transactions. A lot has been speculated wether bitcoin will replace big players such as Visa, PayPal or Western Union among the rest of the top10. And that is something one should certainly consider. Bitcoin is both a currency and a payment system. A cheaper, self-sustained and fast system, it does have serious advantages over its competitors.
VOLUME ($) QUANTITY
Data: “www.coinometrics.com” (1)
Nowadays it is not possible to instantly sned cash through the Internet with next to zero fees. Many migrant workers are able to send money back home to their families in another country only by giving 10% of the transaction value to Western Union. With bitcoin the process becomes almost free.
Another example is that, to use PayPal, you have to sign up for an account, link it to your bank account(giving all sorts of personal information) and waiting three days for the money to be sent from your bank account to your PayPal account. Again this with Bitcoin doesn't happen. The process is simplified. (2)
Until the invention of bitcoin, online digital payments had to rely on trusted third parties like Visa, Western Union or PayPal to keep a ledger of account-holder balances. As to say, a record of who owns that. For example, if “A” sent 1€ via PayPal to “B” ,PayPal would deduct 1€ from “A's” account and add it in to “B's” account.
Another reason for the existence of a third party is the double-spending1 proble...
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...itcoin still might not be able to compete with proven and trusted companies like Visa, Paypal or Western Union it is on the right track to becoming more viable. Its infrastructure is being strengthened (by the ever increasing difficulty and security of the network) and the adoption rate slowly increasing. Truth is that more people and business keep joining daily the Bitcoin ecosystem increasing the spread of the wealth and the uses of Bitcoin. Also new programs are continually being developed in order to make bitcoin more user-friendly so that everyone can be able to surpass the technological barrier that is holding back the majority of the population.
Bitcoin is a decentralized movement leaded equally by its users. Unlike the rest of the competitors in the graph it has no leadership, and to be in the 10th position under that conditions says a lot of its nature.
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?
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.
Information Technology (IT) is a foundation for conducting business today. It plays a critical role in increasing productivity of firms and entire nation. It is proven that firms who invested in IT have experienced continued growth in productivity and efficiency. Many companies' survival and even existence without use of IT is unimaginable. IT has become the largest component of capital investment for companies in the United States and many other countries.
Bitcoin was first proposed by a person known only by the apparent pseudonym of "Satoshi Nakamoto" in 2008. It is an internet based digital currency along with its own payment network which uses strong cryptography to prevent users from illicitly duplicating money. 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. Every time someone successfully "finishes" a transaction, they receive Bitcoins in return. This provides an incentive to keep the currency running.
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.
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.
Over the last ten years people in the United State and around the world have heavily relied more on their debit or credit cards to process transactions of their purchases. In the old days it used to be when you would get your paycheck on Friday and rush to the bank during your break or lunch in order to cash withdraw your funds or deposit them into your account. It used to be where you carry cash to buy groceries, pay bills, and go shopping. Now some people don’t even set foot inside their bank branch because they are paid using direct deposit or the funds are loaded into a debit card provided by their employer. Many employers from around the globe don’t even issue paper check anymore.
This system helps all of these banks provide financial secrecy which is that only you and your banker would legally be allowed to know the financial activity within your account. The financial secrecy, completely different from financial privacy, includes many regulations to maintain this asset of secrecy. For example, many banks would n...
E-commerce, a system by which people can buy, sell and deal without even seeing the person on the other side, has taken a front seat in improving the economy of countries around the world. Technology today has made it possible for monetary institutions to help locate the customers resources and help solve their problems at any given time through online banking.... ... middle of paper ... ...
receiving money by means of computers in an easy, secure and fast way using an account-based system. This can be
Digital money is undeniably convenient; anyone who has used a credit or debit card understands this. However, the era of digital money is only beginning; rapid technological advances will continue to make paper money a remnant of the past. Several innovations are already lessening the burden in your wallet. For instance, the seemingly innocuous mobile phone is actually playing an increasing role in facilitating monetary transactions, especially in Asia. Already, in Japan, large companies such as Coca-Cola have sanctioned vending machines that are not only compatible with common cell phones but also allow consumers to earn credits for using them (Kupetz). In this regard, the United States is strikingly behind the times when compared to other countries. Another new technology in the vein of mobile phones is no-contact cards. These innovative cards do not require a cashier to conduct a transaction; one simply holds a specia...
The use of credit and debit cards today are taking a tour in the sense that electronic cash is becoming more admissible as the world makes a switch towar...
In conclusion, E-commerce looks more promising in the future. With the evolution of the E-commerce application, every business should take advantage of it. I believe it is the new way of reaching out to a large clientele. In future physical business locations would become more of a showroom. This would simplifier customers way of shopping. Like any other project, E-commerce application needs to be managed probably to succeed and be able to compete in the future.