Bitcoin Cryptocurrency Analysis: Social Impact, Issues and Protection

This report provides a comprehensive analysis of Bitcoin cryptocurrency, examining its social impact, intellectual property protection, and various opportunities and drawbacks. The report begins with an introduction to Bitcoin as a decentralized digital currency and explains its transaction verification process. It then delves into the social impact of Bitcoin, highlighting its potential as an alternative to traditional fiat currencies and its role in intellectual property protection through blockchain technology. The discussion covers the advantages of Bitcoin, such as streamlined transactions, payment freedom, enhanced security, and discretion, as well as its drawbacks, including a lack of public awareness and high volatility. Key issues related to Bitcoin, such as cybercrime, the security of private keys, and limited transaction capabilities, are also explored. The report concludes by summarizing the potential of Bitcoin as a secure and efficient means of transaction, while acknowledging the need for further development and improvements to address existing challenges.

Running head: BITCOIN CRYPTOCURRENCY
BITCOIN CRYPTOCURRENCY
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Table of Contents
Introduction:....................................................................................................................................2
Discussion:.......................................................................................................................................2
Social impact of Bitcoin:.............................................................................................................2
Intellectual property protection:..................................................................................................2
Opportunities related to Bitcoin:.................................................................................................3
Drawbacks of Bitcoin:.................................................................................................................5
Issues related to Bitcoin:..............................................................................................................5
Summary:.........................................................................................................................................7
References:......................................................................................................................................8

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Introduction:
The Bitcoin is a form of decentralized crypto currency which is currently in use. The
transactions that are made with the usage of the Bitcoin are verified at the nodes of the network.
In other term, Bitcoin is a computer file which is stored in the digital wallet with the help of the
smartphone application. Transaction of the Bitcoin is done through the digital wallet itself. The
technology makes use of the block chain to keep track of the transaction. The goal of introducing
the Bitcoin in the transaction was to purchase without disclosing identity (Nakamoto 2019). The
aim of the report is to identify the advantages and disadvantages and disadvantages of the
Bitcoin along with it impact on the society and role played in the protection of the intellectual
property.
Discussion:
Social impact of Bitcoin:
With the technological advancement in the society, new techniques have been introduced
such that the monetary properties can be stored. As per the studies, it has been found out that the
crypto currencies are much better alternatives for the storage of the monetary properties or
wealth than the fiat currencies. The Bitcoin helps in gaining value over long term, and is not
subject to monetary inflation hence it is preferred by the people around the world.
Intellectual property protection:
In order to protect the assets that are present as Bitcoin, the wallet has to be updated
regularly. The details of the transaction along with the amount and id is stored in the wallet. The
Bitcoin uses block chain technologies in the process of transaction. Every step in the transaction
is accounted for. The changes made in any step is marked digitally, and cannot be altered without

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notifying the authority. This is one of the most secured form of storage of the digital wealth. The
block chain technology used in the Bitcoin helps in creation of a time stamp which cannot be
altered. All though the block chain technology is used in the Bitcoin, it is not patented and that is
one of the greatest lack in the protection of the intellectual property (Underwood 2016).
In the contemporary world, the usage of the Bitcoin technology is prevalent in all the
sectors. As all the technologies present have their opportunities and drawbacks in some sector or
the other, the Bitcoin has its own opportunities and drawbacks. The section below gives a brief
idea about the opportunities and the drawbacks of using Bitcoin crypto currency in the current
world.
Opportunities related to Bitcoin:
 Transaction: the traditional business transaction consists of several process which
includes, dealing, agents, legal representatives and brokers. Each and every process of the
transaction involves the expenses. With the usage of the Bitcoin crypto currencies, the
middle man in the business can be cut off. This process of transactions and dealing takes
place in the peer to peer network where the third parties are not involved at all. The status
of clarity, accountability and the establishment of the audit trails becomes easier with the
usage of this technology.
 Freedom of payment: with the usage of the Bitcoin, the transaction is possible
irrespective of place or time. There are no restriction in the transfer of money with the
help of the Bitcoin technology (De Filippi 2019). The technology is not attached to any
central administration from where it can be controlled. One is solely responsible for their
own money.

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 Usage of the private keys: Each and every user using the Bitcoin have a private key,
which is usually a password, apart from this they may have their own private key for
enhancing the security of the transactions.
 As the user can control their transaction using the Bitcoin, transaction becomes much
secured than other modes of transaction. No extra fee can be charged without proper
notice. Any alteration in the amount is never left unnoticed.
 Discretion: Bitcoin helps in maintaining unanimousness of an individual from prying
eyes of the hackers, thereby protecting them from the theft of the identity.
 Peer to peer transaction is one of the other important function of the Bitcoin. This
allows the user to interact with one another directly without any approval from any other
third party or banks. The process is extremely fast and safe.
 Encryption of the Bitcoin allows in securing the money that is transferred or received.
 The charges cost for using bit coins are much lesser than the other forms of transaction.
Further charges can be added by the user for the faster processing of the transaction. The
priority of the network can be enhanced with extra fees paid.
 The merchant can convert the Bitcoin into fiat money from the Digital Currency
Exchange, whose service charges are much lesser than the credit cards and PayPal
(Geuder, Kinateder and Wagner 2019).
 As the process of transaction with the help of Bitcoin is irreversible, no sensitive
information is included. The risks for the merchant decreases as there is no loss of
potential data while using this.
 The stakeholders who are benefited with the usage of the Bitcoin includes the merchant
who are using it, along with the other members of the Bitcoin ecosystem. The Bitcoin

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ecosystem includes the miners, the developer and the users. The developers develops the
applications with mentioned changes and suggestion from the client end. The miners are
the keepers of the block chain technology which is in use for the Bitcoin.
Drawbacks of Bitcoin:
 The major drawback of the Bitcoin technology is the lack of awareness. People are still
unaware of the appropriate usage of the Bitcoin. The business have started adapting the
technology after being educated with the importance and the benefits of using the
Bitcoin. People have to be educated about the Bitcoin technology (Bouoiyour et al.
2016).
 The volatility of the Bitcoin is much higher. As the technology is spreading at an
exponential rate the requirement for the Bitcoin increases as well. But the coins are much
limited (Charles and Darné 2019).
 The technology is still developing, and features are being added on a regular basis.
Bitcoin is incomplete and needs time for completion. Certain problems keeps on arising
with the usage of the technology (Urquhart, 2017).
Issues related to Bitcoin:
The unanimousness may be considered to be one of the greatest aspect of Bitcoin, but is
also one of the greatest issues of the technology as well. With the technological up gradation, the
usage of the internet has increased considerably. Issues of cybercrime has increased as well. All
the dark web activities, including the illegal transactions are performed with Bitcoin. As the
transactions are unanimous, tracking these transactions are very difficult. With the further
increment of the cybercrime activities and the volatility of the Bitcoin the entire process of
cybercrime becomes easier (Narayanan et al. 2016).

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The private key may be stolen. For an entire system running on passwords and keys, if
the password itself is stolen the user have got no option. The technology runs on the cloud
computing services which are vulnerable. The privacy in the public block chain is very less. The
transaction through bit coins are not encrypted. Instead they are hashed. Public scrutiny is
applicable for each every transaction that has ever taken place in using Bitcoin. This may give
out the necessary data and hamper the privacy. A project named, DrakWallet have discovered
this phenomenon as a major issue in the Bitcoin technology (Crosby et al. 2016).
Apart from this, in the world of mobile technologies absence of a platform for the mobile
application is one of the major issue. The company like the Apple, Google, and Microsoft have
not yet decided over placing Bitcoin wallet in their respective Application Stores. Recent reports
says that Apple have in fact banned the usage of the Bitcoin Wallet. The app payment cannot be
done with the help of Bitcoin wallets in Apple. The scenario is similar for Google as well
(Hendrickson and Luther 2017).
Limited transactions can take place with Bitcoin. Limited transaction helps in prevention
of the block chain technology from spiralling out of control. The problem has to arouse as yet
because that limit has not being reached until this date. With the increasing demand for the
technology, it is not very far when the Bitcoin will be used for the purpose of mainstream mode
of payment and it will become very difficult for the block chain to follow up.
Usually the cost of transaction is much lesser for using Bitcoin, however, the transaction
charges are high based on the priority of the transaction. For example the charges for the
transaction is very high if client or the user demands fast transactions or immediate transaction to
the other without any waiting or processing time (Urquhartn 2016).

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The time taken by the Bitcoin to perform major transactions is high. Thus the business
are avoiding the usage of Bitcoin. The average time taken by Bitcoin is forty-three minutes,
which is at time very emport6ant for the business. The time is mainly consumed in the process of
verification using the Block chain, which uses decentralized, distributed ledger techniques which
underpins the Bitcoin.
Summary:
After going through the entire scenario, it can be said that the crypto-currency is one of
the secure way of transaction. Bitcoin is one of the well-known crypto-currency of all time which
helps in the transaction of the wealth with a very short notice of time without involvement of the
third party in between the transaction. The user or the client is have full control over his or her
online asset which is transferred with the assistance of crypto currency. The usage of the private
keys helps in keeping the transaction secure. The entire process remains unanimous as the details
of the peers are not used for the transaction. The process of the transaction depends upon the
priority, for the fast transaction process the transaction fees have to be paid. All though the
technology is quite in use, there are no mobile platform for doing that. Bitcoin also helps in the
process of covering cybercrime with its ability to remain unanimous. Hence, we can conclude
that the Bitcoin can be used for the purpose of the transaction with further improvement done to
it which will make it more suitable and less complicated for the usage ion the contemporary
world.

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References:
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price. Economics Bulletin, 36(2), 843-850.
Charles, A. and Darné, O., 2019. Volatility estimation for Bitcoin: Replication and
robustness. International Economics, 157, pp.23-32.
Crosby, M., Pattanayak, P., Verma, S., and Kalyanaraman, V. (2016). Blockchain technology:
Beyond bitcoin. Applied Innovation, 2(6-10), 71.
De Filippi, P. (2019). Bitcoin. De Filippi, P.(2019)«Bitcoin» in Haunter D. & Op den Kamp C.
(eds). A History of Intellectual Property in, 50.
Geuder, J., Kinateder, H. and Wagner, N.F., 2019. Cryptocurrencies as financial bubbles: The
case of Bitcoin. Finance Research Letters, 31.
Hendrickson, J. R., and Luther, W. J. (2017). Banning bitcoin. Journal of Economic Behavior &
Organization, 141, 188-195.
Nakamoto, S. (2019). Bitcoin: A peer-to-peer electronic cash system. Manubot.
Narayanan, A., Bonneau, J., Felten, E., Miller, A., and Goldfeder, S. (2016). Bitcoin and
cryptocurrency technologies: a comprehensive introduction. Princeton University Press.
Underwood, S. (2016). Blockchain beyond bitcoin.
Urquhart, A. (2016). The inefficiency of Bitcoin. Economics Letters, 148, 80-82.
Urquhart, A. (2017). The volatility of Bitcoin. Available at SSRN 2921082.