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Introduction to Bitcoin Cryptocurrency

   

Added on  2021-04-17

22 Pages4094 Words38 Views
Bitcoin

ContentsIntroduction......................................................................................................................................3Basic information about Bitcoin......................................................................................................4Acquiring Bitcoin........................................................................................................................4Buy on an Exchange................................................................................................................5Transfers..................................................................................................................................5Mining......................................................................................................................................5Owning Bitcoins..........................................................................................................................5Prices of the bitcoin during 2017 in each month.............................................................................6Bitcoin and its effect on Economies................................................................................................8Reduced reliance on fiat money..................................................................................................9Impact on overseas remittances...................................................................................................9Access to the credit system..........................................................................................................9The reason behind the increase in Demand of the Bitcoin in a few years.....................................10The changes in the price of the Bitcoin.........................................................................................12Bitcoin effect on other global currencies.......................................................................................13Bitcoin impact on the global stock market....................................................................................14Who are with and who are gains the Bitcoin.................................................................................14Consumer of bitcoin......................................................................................................................15Conclusion.....................................................................................................................................17

References......................................................................................................................................18

Introduction The report is based on the Bitcoin which is a cryptocurrency and the worldwide payment system.It includes the details related to the prices of Bitcoin during 2017 in each month along with this itshows what is Bitcoin and it can create an impact on the economics. Moreover, the report shows the rise in the demand of the Bitcoin in few years which leads to fluctuations in the prices of Bitcoin. This cryptocurrency affects the global currencies and its impact on the global stock market.

Basic information about Bitcoin Bitcoin is first decentralized digital currency in which the system works and operation without any involvement of central bank or single administrators. Bitcoin transactions generally take place between the direct users that include the buyer and seller of the currency. Most of the people invest in Bitcoin considering it as an investment (Carmody, 2013). It is said that Bitcoin was introduced by an unknown person under the name of Satoshi Nakamoto in the year 2009. There are different uses of Bitcoin such as: -It can be used for booking hotels on Expedia.Customers can use bitcoin to purchase furniture from overstock and buy Xbox games. Mostly the Bitcoin is used for the trading purpose. Along with this, this currency can be used by the customers to buy merchandise anonymously. (Source: bitcoin, 2018)Acquiring Bitcoin An acquiring refers to as the purchase of the currency. There are numerous ways through which the customers can buy or acquire Bitcoin.

Buy on an Exchange There are various marketplaces where the customer can exchange the Bitcoins which means that they can get involved in the buying and selling of Bitcoin using various currencies. The leading exchanges of cryptocurrency are Coinbase, Bitstamp, and Bitfinex (Yellin, Aratari and Pagliery, 2018). Though, these exchange marketplaces face the issue related to the security of the currencyas it is one of the leading concerns. In the year 2016, the bitcoins worth of tens of millions of dollars were stolen by the hackers from the Bitfinex. Transfers Most of the customers send their bitcoins to each other with the use of their computers and mobile apps as it is a digital money. Therefore, it is the same process like sending cash digitally from one person to other. Mining Most of the people compete to mine bitcoins with the use of computers or desktop to resolve the complex puzzles of math. Mining was the way that created the bitcoins and this how the winners of the contest get rewarded with the bitcoins. This shows the transfer of bitcoin that took place among them (Bitcoin, 2018). Owning Bitcoins Bitcoins are kept in the digital wallet which either exits in the cloud or on a consumer’s processor. This wallet is basically a virtual bank account that permits the consumer to send or to receive the bitcoins and consumer can make the purchase of goods and services easily. These virtue accounts are not insured by any FDIC as like banks.

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