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Virtual Currency Investment (Bitcoin) Assignment

   

Added on  2020-12-28

16 Pages4682 Words193 Views
Business Briefing- VirtualCurrency Investment Options(Bitcoin)

TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1Overview......................................................................................................................................1Current market state.....................................................................................................................2Market penetration.......................................................................................................................3Government position...................................................................................................................5Tax implications..........................................................................................................................6Benefits and drawbacks...............................................................................................................7Security: backing, risks, threat analysis.......................................................................................9Long term Outlook......................................................................................................................9Recommendations......................................................................................................................11CONCLUSION..............................................................................................................................11REFERENCES..............................................................................................................................13

EXECUTIVE SUMMARYVirtual currency is an unregulated digital money whose transaction tends to take placeonly online. Bitcoin is one of them. Bitcoin is considered to be the first open source softwarethat was issued and introduced in the market as cryptocurrency for people, to use, in the year2009. The customer does not have to deal with third party while opting for any type ofinvestment and transfer of virtual currency. It has been able to develop peer to peer network forvarious types of investors, irrespective of what amount they are trying to invest in. Australiahave also been able to attract investors towards Bitcoin as it works independently without anytype of government interventions. 1

INTRODUCTION In the era of internet, digital currency has become one such aspect that has started attractinginvestors towards it. It has its core presence on internet and functions in virtual format only. Thereport makes comprehensive discussion regarding presence of virtual currency in the market andvarious benefits and drawbacks attached in its investment. Since, Bitcoin have been one of themost famous cryptocurrency among all, the report makes its overall discussion based on it. Thereport then focuses upon role of government in the functioning of Bitcoin and its taximplications. Overview Virtual currency is considered to be a kind of unregulated digital money which is generallyissued as well as controlled by its developer and which can then be used and accepted among themember of specific virtual community. It is a digital asset that can be used as a medium ofexchange. Encryption techniques are used in it so as to generate units of currency and ensure thatfunds are being securely transferred. Bitcoin is the first open source software that has been issuedand introduced in the market as cryptocurrency for people in the year 2009 (Minor andBitreserve Ltd, 2015). Operations generally lie in the hands of central bank. These types of fundtransfers are safe and trusted as well as encrypted sites are brought into use to generate, investand further transfer funds. Bitcoin is one of the most common as well as modern examples ofvirtual currency which also offers outlet for personal wealth. It is beyond any type of restrictionsas well as codifications. It also gives assurance to the customers that their money will not belooted and can also be preserved from any type of robberies with the help of encrypted code. The customer does not have to deal with third party while opting for any type ofinvestment and transfer of virtual currency (Lingappa and Visa International ServiceAssociation, 2015). Moreover, there is not boundaries of location as all the transactions tend totake place at the virtual platform. One can also get the cryptocurrencies investment in a cryptowallet and can store it for longer period of time as well. There are various types ofcryptocurrencies that are available in the market. These are, Zcash, Dash, Ethereum, Litercoin,Monero. One of the cryptocurrency that have been able to become a trend setter is Bitcoin. It hasbeen able to develop peer to peer network for various types of investors, irrespective of whatamount they are trying to invest in. Bitcoin is an electronic cash which is a first decentralised2

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