This website uses cookies to ensure you have the best experience. Learn more

Bitcoin Cryptocurrency Essay

1856 words - 8 pages

Bitcoin Cryptocurrency
Recently, notable interest in payment systems based on virtual currency such as Bitcoin has become widespread. According to Burt, Gilbert, and Blye (n.p), Bitcoin advocates were dealt a major blow in 2014 when the most active Bitcoin world exchange, Mt. Gox, was declared bankrupt, incurring approximately $473 million in losses. Following the Mt. Gox collapse, Bitcoin value fell to around $500 from a high of $1000. Despite this, interest in Bitcoins has remained surprisingly resilient (Trautman 23). This paper will explore the efforts aimed at developing a novel and improved digital exchange medium, its advantages, and disadvantages. The paper will also explore ...view middle of the document...

Keating (31) adds that Bitcoin exchanges have evolved to facilitate transactions by equipping Bitcoin users with a platform for purchasing and selling Bitcoins using different currencies. Exchanges have evolved as the most common means of acquiring Bitcoins with Mt. Gox being one of the biggest exchanges at one time (McMillan & Metz n.p).
Bitcoins are mined by running software through specialized hardware on the computer of a user, using computing power in securing the Bitcoin network, processing and verifying transactions, and keeping all users synchronized together (Mona & James 319). Mona and James (319) also note that the system used in creating new Bitcoins is engineered with a maximum limit of 21 million coins. As more people become recipients of newly minted coins or miners, the mining process yields less new Bitcoins. However, Bitcoin can be divided infinitely, as the currency is not physical (Mona & James 319).
Advantages of Bitcoin
Bitcoins are trusted mainly because they require no trust at all (Mona & James 319: Keating 31). The system is fully open source and decentralized, meaning that any person can access the complete source code it at any moment. Mona and James (319) point out that Bitcoins attract numerous advantages to the users using the medium to make payments, merchants accepting the payments and to users holding Bitcoins to store value.
To the user
Making payments using Bitcoins is easy as compared to credit and debit card purchases (Burt, Gilbert, & Blye n.p). The user can send and receive money huge amounts of money instantly at any time and from anywhere in the world. Moreover, Bitcoin users fully control their money with no imposed limits or borders and users can make Bitcoin payments with extremely little or no processing fees. Transactions from users who include processing fees receive faster confirmation by the network (Burt, Gilbert, & Blye n.p).
To the merchant
A merchant can receive payment for selling goods and services without having a merchant account (Burt, Gilbert, & Blye n.p). Merchant processors assist merchants to process their transactions by converting Bitcoins to flat currencies and later depositing the funds directly into the bank accounts of merchants daily. Since these services are Bitcoin based, they attract lower fees as compared to PayPal or other credit networks. According to Burt, Gilbert, and Blye (n.d.), transactions made using Bitcoins are also secure, for sensitive personal information of users are not included in transactions. In addition, payments made by customers are irreversible, and this protects merchants from fraudulent chargebacks or losses incurred from fraud creating no need for PCI compliance. Another bonus to the merchant is that they can expand into new markets with unacceptably high fraudulent rates and unavailability of credit cards. The net results are fewer administrative costs, large markets, and low fees (Burt, Gilbert, & Blye...

Other Papers Like Bitcoin Cryptocurrency

Hate Crime Laws Essay

2348 words - 10 pages On June 7, 1998, 49-year-old James Byrd Jr. of Texas accepted a ride from three white men, who then beat him severely, urinated on him, chained him by his ankles to the back of their pick-up truck, dragged him for three miles into the countryside, and dumped his corpse in front of an African-American cemetery (Graczyk). A little over a year later, a jury sentenced ring leader John King to death by lethal injection (“Man Executed for Dragging

Rational Emotional Behavior Therapy Case Study Conceptualization And Treatment Plan

2140 words - 9 pages Rational Emotional Behavior Therapy Case Study of Sarah: A Conceptualization and Treatment Plan Rational emotive behavior therapy, REBT, was developed by Albert Ellis and holds the central belief that the events in our lives do not cause our disturbances but that they are instead caused by our view of the events (Murdock, 2009). Murdock (2009) states that “people are seen as responsible for their behavior” (p. 279) but, because they are

Holidays In Albania

1636 words - 7 pages Have you ever thought about having exciting and incredibly cheap vacations? Albania might be the right choice. According to My Travel Guide, Albania is ranked the fourth among ten places worth visiting in Eastern Europe (“Top 10 Eastern European Destinations”). One can encounter three kinds of vacations in this Mediterranean country: winter, summer, and cultural. The ideal places to spend your winter vacations are the Albanian Alps. They are

A Heart Of Darkness

1748 words - 7 pages In this short story, there are frequent significant subject and ideas that make the story, "A Heart of Darkness," by Joseph Conrad, and haunting novel. The main theme is absolute white power over the natives. The theme validates the corruption, and the dependence caused by the white people as they took over the Congo. White men were giving all the power; they had no self-control, and in the end they did not use wisely. The white men became

The Aspects Of Vulnerability Among The Exploited In Medical Research

2287 words - 10 pages Essentially, everyone is in some state of vulnerability. However, some of us are more susceptible to harm due to our vulnerabilities. The susceptible are the individuals with the greatest risk. These individuals risk the loss of their autonomy, and maybe even their lives. Vulnerable populations can be found in every subset of society. However, as previously mentioned, there are some vulnerable populations that are at an even greater risk than

The Hitchhiker’S Guide To The Galaxy

1171 words - 5 pages The Hitchhiker’s Guide to the Galaxy As the human race makes life-changing discoveries, it is made apparent that there is always more to learn as the universe, instead of becoming familiar, is becoming absurd. The Hitchhiker’s Guide to the Galaxy, written by Douglas Adams, as well as the 2005 film adaption, portrays absurdity to be an all-encompassing system in the universe. Through the introduction and attempt to understand lack of reason, the

The Ford Motor Company Wage Increase Of 1914 And The Theory Of Incentives And Efficiency Wages

1252 words - 6 pages ‘It’s not the employer who pays the wages. Employers only handle the money. It is the customer who pays the wages’ (Henry Ford, cited in Johnson and Weinstein 2004, p. 2). When the Ford Motor Company announced that it would more than double the wages of its workers in January 1914 to a ‘five-dollar day’ minimum, was this a contradiction to Henry Ford’s statement? If customers are actually the ultimate payers of wages, then more than

Historical Analysis Of The Economical Breakthroughs Of The Industrial Revolution

1396 words - 6 pages A Historical Analysis of the Economical Breakthroughs of the Industrial Revolution During the Industrial Revolution, many elements of society experienced huge breakthroughs that would change the way they functioned forever. Economics were definitely one of them. With many new inventions and many factories appearing, many, many, more resources were being created than ever before. Also, all of the revenue from these resources was being given to

Leadership Portrayed in Monologue from Shakespeare’s Henry V

1214 words - 5 pages Leadership is defined as a socially constructed process and which also affect organizational future outcomes. Leader is someone at high position who have overall duty for an organization, she or he decide what to do and the way how to achieve it. (Carter and Greer, 2013)The role of leader is extremely important for an organization, leader use their own power to influence the followers though many different ways such as motivation in order to

Cuba Civil Rights

1906 words - 8 pages Picture a country that has limits on how much you can make random government imprisonments and more what do you do. That is the situation for the eleven million seventy-five thousand two hundred forty-four people of Cuba since the takeover of Fidel Castro. The US is opposed to Castro taking control of Cuba. Castro managed to ease the United States nerves when he said that Cuba was against all forms of communism. According to Lana Wylie the Union

US Freight System

1273 words - 6 pages General Environment Each American requires the movement of approximately 40 tons of freight per year across the freight network. This includes everything from shirts to lawn mower to orange juice. • As the U.S. population expands, the U.S. freight system will be called upon to meet the demands of a larger population • Between 2010 and 2035, the system will experience a 22 percent increase in the total amount of tonnage it moves • By 2050, with

Related Essays

Tax Issues Relating To Bitcoins Essay

2232 words - 9 pages of bitcoin for proper treatment for tax purposes. Thus, the basic objective of this paper is to study a few selected tax issues relating to Bitcoins. 2. What is Bitcoins? Bitcoin is cryptocurrency electricity converted into lines of code with monetary value.1 in the simplest of forms, cryptocurrency is digital currency. A form of payment that uses cryptography to control its creation and management, rather than relying on central

Dafdsd Essay

534 words - 3 pages for easier transactions. In contrast, it is debatable whether it can be stable in comparison to other traditionally used currencies. -Acceptance of the Bitcoin being a legitimate form of currency has been acknowledged by various entrepreneurs as well as the fact that it is labeled as legal tender in Germany. Although with this fact, the cryptocurrency is slowly becoming more centralized as regulations are put on it in the countries of practice

Virtual Currency Will Not Replace Sovereign Currency

2800 words - 12 pages :// (accessed 3 27, 2014). Jordan Chittley, Kevin Newman Live. "Jordan Chittley, Kevin Newman Live ." CTVNews. 3 4, 2014. (accessed 4 13, 2014). Juanjuan, Niu. "Can Bitcoin Become Real Money?" CNKI. 1 7, 2014.

Freedom And Responsibility Essay

2141 words - 9 pages Built within the Constitution of the United States are specifically defined freedoms that are guaranteed to all citizens. Conversely, with every constitutional freedom there comes a corresponding responsibility. On September 25, 1789, the state legislature’s twelve proposed amendments were transmitted by congress, the first two dealing with congressional representation and congressional pay. The following numbers three through twelve were