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Internet Research Paper

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How the development of the Web and Internet has impacted global finances?
Internet and World Currency – Bitcoins and Illegal purchases over the web

By Harvey T. Mayorga
Panther ID 2191830
FIN6644
Instructor: Dr. Krishna Dandapani

ABSTRACT
The subject of this project is going to be Bitcoins. I will be researching and going about how Bitcoins work, how good or bad can bitcoins be and its involvement in illegal purchases over the internet.

SUMMARY
Page
2 Abstract
4 What are Bitcoins?
6 Bitcoins Timeline
7 Bitcoins good or bad?
9 Who is using Bitcoins? – Bitcoins and illegal transactions
11 Silk Road and Bitcoins
13 Bitcoins and the US Economy
14 Income Statement
16 Balance Sheet
18 Cash Flow
19 Bitcoins today
21 Where to Buy Bitcoins?
22 Articles

What Are Bitcoins?
Bitcoin is an innovative payment network and a new kind of money. It was created in 2009 by an unknown person using the alias Satoshi Nakamoto.
Bitcoins is an online payment system introduced in 2009 as an open-source software. It is a peer to peer or P2P system where users can transact directly without needing an intermediary. Transactions are verified by network nodes and recorded in the block chain or public distributed ledger. This ledger uses its own unit of account, bitcoin. The system works without a central repository or single administrator, which has led the US Treasury to categorize it as a decentralized virtual currency. (www.wikipedia.com, 2015)
Bitcoins are stored in a digital wallet. This wallet can exists in either the cloud or on a user’s computer. Through this online bank account or wallet the user can send and receive bitcoins, pay for goods or save money. (www.money.cnn.com , 2015)
According to Jose Pagliery, author of “Bitcoin – and the future of money”, bitcoins is an interesting concept, but so far is still a complicated concept. He

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