...The SCDS Group Global Article - Bitcoins Bitcoin is a digital currency invented in 2008 by Satoshi Nakamoto, a pseudonym for a person or group who, apart from a 2008 paper introducing Bitcoin, have remained anonymous and absent (Carmody, 2013). The currency has been gaining wider acceptance across the globe with 30% of Bitcoin transactions going through China’s BTC exchange (Tseng, 2013). There are estimated to be an average of 50,000 to 70,000 Bitcoin transactions daily to purchase goods such as video games, books, computer servers, and more (Bitcoin is an innovative payment network and a new kind of money, 2013). The introduction of a decentralized digital currency has many potential positive and negative consequences to the global economy and the societies that participate in global economy. One positive consequence of using Bitcoin is that it allows access to participate in the global economy without the need for a bank account and its associated banking infrastructure. Anyone with internet access via a computer or mobile device is able to set up a Bitcoin account and begin exchanging the virtual currency. This directly benefits third world countries where exchange of currencies and banking is not easily accessible. Another positive resulting from the introduction of Bitcoin is the potential savings that can result from using the currency when transacting between two parties that do not share a common local currency. The biggest potential for Bitcoin worldwide is probably...
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...BitCoin the Future of Currency Currency is basically anything that is accepted as a medium for exchange. The common concept of currency is a physical note or coin of a certain denomination regulated and guaranteed by particular government or bank. Everyone around the world uses and depends on currency on a daily basis, hundreds of millions of transactions transacted by hundreds of millions of people whose individual wealth depends on the stability of their currency. The stability of any currency is dependent on many economic factors the most implicit being the stability of the issuing government. If the government who is backing the tender is unstable then the value of its money will directly be affected. Another huge factor in the value of a countries currency is inflation. Inflation is dependent on many factors, most of which are subsequent to the nature of an economic cycle. Some inflation is a by-product of the regulation, de-regulation and/or government monetary policy. What if there was a new currency that was not associated with a nation, government or bank? What if there was unified currency that allowed the wealth of one person to directly compare or exchange with to the wealth of another regardless of geographic location? This “new” currency has recently been developed and it is called the Bitcoin. The Bitcoin and its concept is extremely progressive and is not considered a savior currency that will solve any monetary problems; however, this paper will outline the...
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...Analysis Money is a driving force that makes the world go round. From the purchases of homes, vehicles, and even to the way we make a living, we cannot escape the importance of currency. Without it every economy in this world may just fall apart. In this article analysis we will look at the various functions of money, the Federal Reserve and its role in the United States (U.S.) money supply, as well as the evolution of bitcoins and its future or nonexistent future in the U.S. Economy. Money serves as three functions: medium of exchange, a store of value, and a unit of account. The most important function of money is a medium of exchange to facilitate transactions. Without money, transactions would have to use the barter system. The Barter System is the act of obtaining a good or service of equal value in exchange for a desired good or service. A store of value is a medium of exchange that must hold its value for a period of time such as land or art for example. Money is more liquid than the average store of value, due to it being accepted everywhere, in various denominations. Lastly, as a unit of account, money provides a common measure of value of goods and services being exchanged. The supplier and the purchaser of goods make decisions on how much to supply and how much to purchase by knowing the value or price of a good. [1] The two objectives of the Federal Reserve in managing the U.S. Money supply are price stability and full employment. Price stability is the situation...
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...Analysis Money is a driving force that makes the world go round. From the purchases of homes, vehicles, and even to the way we make a living, we cannot escape the importance of currency. Without it every economy in this world may just fall apart. In this article analysis we will look at the various functions of money, the Federal Reserve and its role in the United States (U.S.) money supply, as well as the evolution of bitcoins and its future or nonexistent future in the U.S. Economy. Money serves as three functions: medium of exchange, a store of value, and a unit of account. The most important function of money is a medium of exchange to facilitate transactions. Without money, transactions would have to use the barter system. The Barter System is the act of obtaining a good or service of equal value in exchange for a desired good or service. A store of value is a medium of exchange that must hold its value for a period of time such as land or art for example. Money is more liquid than the average store of value, due to it being accepted everywhere, in various denominations. Lastly, as a unit of account, money provides a common measure of value of goods and services being exchanged. The supplier and the purchaser of goods make decisions on how much to supply and how much to purchase by knowing the value or price of a good. [1] The two objectives of the Federal Reserve in managing the U.S. Money supply are price stability and full employment. Price stability is the situation...
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...unit of account, a standard of deferred payment, and a store of value. Money has develop in pace and parallel with human civilization from the barter-system, the commodity money, the evolution of the fiat money to the technology of e-money. The Barter System Barter system is an old-age method that was created adopted by people to exchange their services and goods for other goods or services in return. During ancient times, barter system was a local phenomenon, which involved people in the same locality. The history of bartering-system can be traced back to 6000 BC where it is believed that barter system was introduced by the tribes of Mesopotamia. This system was then adopted by the Phoenicians, who bartered their goods to people in other cities located across the oceans. People used to exchange their goods for weapons, tea, spices, and food items and sometimes, even human skulls were used for barter. The advantage of bartering is that it does not involve money. You can buy an item in exchange for some other thing you currently have, but don't want. But despite the advantages, the main drawback of this system was that there were no standard criteria to determine the value of goods and services, and this resulted in disputes and clashes. Another disadvantage is some of the trade items or items to be bartered are perishable items, especially foods which have high tendency to rot. It is also difficult to set value for such items with short life span and moreover, most of the...
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...Page 1: Invented in 2008, Bitcoin is not the first attempt at an all-digital, cryptographically based currency. Others have existed in one form or another for nearly fifty years, but have either failed to take off or dramatically crashed and burned. Bitcoin is the first cryptocurrency with the deep structure, wide adoption, and trading momentum to achieve escape velocity. In practice, Bitcoin blends credit cards' ease of digital transfer with the relative anonymity of a cash handoff. Like all currencies, the problems it poses are both practical and metaphysical; like cash or credit, Bitcoin is somehow both more and less real than the goods it is traded for. Until now, the most well-known of these goods have been illegal drugs, like those on Silk Road. But the drug marketplace's shutdown gives Bitcoin a chance to gain some much-needed legitimacy. Page2: Bitcoin's future potential was a hot topic last year at emTech, an MIT conference on emerging technologies. In a panel hosted by MIT Technology Review's Tom Simonite, MIT economist David Johnson and BitPay CEO Stephen Pair discussed Bitcoin's complex relationship with paper currencies, credit, and state authority. Johnson noted that buyers and sellers, banks and governments all care deeply about what money is used for. Money's use carries associations of value, which in turn helps establish whether a currency, a payment form, and a social model for transactions are legitimate. "It's hard to bring any of them on board if the money...
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...Invented in January of 2009, Bitcoin is the world’s first online digital crypto-currency. Rather than relying on central authorities, Bitcoin uses cryptography to control its creation and management. In today’s day and age, cryptography is heavily based on mathematical theory, which Bitcoin creators used to create computational algorithms as a means of securing electronic Bitcoin transactions. From a globalization perspective, the dramatic rise of Bitcoins is of particular importance because of the threat it poses to the centralized global monetary system, as well as central banks of governments all over the world. For the basis of this report we will examine two reputable news sources, the British Broadcasting Corporation (BBC) and the Canadian Broadcasting Corporation (CBC), and review their coverage on Bitcoins, to produce an in depth analytical analysis of the global impact that this decentralised digital currency poses. Brief Introduction into the Background of Bitcoins In 2009 when Bitcoins were first unveiled to the global market, it was introduced as an alternative to the failing fiscal policy of the global monetary system, which was seen as a catalyst for guiding the world into the 2008 recession. Both news outlets recognized developer or developers, Satoshi Nakamoto, as the pseudonym for the creator of the Bitcoin protocol, which is based on “a fundamental critique of the world’s monetary system” (Mendoza, 2012, para. 4). Nakamoto expanded on this critique through...
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...Bitcoin Within the emerging world of digital technology, the amount of online transactions has increased steadily since they were created in 1979. In 2016 it is estimated that there will be upwards of three hundred ninety two billion dollars in total online transactions. With such a high demand for easy online payments, the utility of digital currencies is being recognized by more people every day. One of the newest forms of digital currency stands out greatly in terms of success in the business world. This form of currency is known as Bitcoin. Before I delve into the details regarding the utility of Bitcoin, I find it appropriate to give some background information and to explain the modus operandi of Bitcoin as it is understood by very few people, yet is extremely significant to understand both the utility and the apprehension felt by those who don’t approve of a solely digital currency. Bitcoin is a digital asset and a payment system that was invented in 2008 and released as an open-source (free usage) software. The novelty system behind bitcoin allows for direct transactions without an intermediary (such as a bank). Bitcoin also encrypts (codes) transferred data by sending the unrecognizable encrypted data through one path along the internet, then sends the decryption key (to decode the data) along another path. This assures financial security by preventing anyone along the network path from being able to intercept this data. Bitcoin currency is stored in a personal bitcoin wallet...
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...main arguments against the establishment of a cashless society and demonstrate how they are neglectable. Author, advisor and commentator on digital financial services, David Birch has classified these arguments in his book “Before Babylon, Beyond Bitcoin: From money we understand to money that understands us” (London Publishing Partnership: June 2017). They are: conservatism, demographics, seigniorage, security and privacy. 1.4.1 Conservatism It is argued that every person has an innate sense of conservatism, a risk-averse attitude towards innovations, and anchors himself to traditional value. This is what brings some persons to think there...
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... What is Bitcoin? 3 Bitcoin is digital Ownership of bitcoins is digital information Typically used on the internet Based on cryptography 4 Bitcoin is a currency Has all properties of a currency Facilitates the trade of one good for another Does not need to have “intrinsic” value The value is determined by supply and demand 5 Bitcoin is decentralized No central issuer or controller Based on a public protocol Cannot be regulated by any institutions A p2p network of nodes running open source software Multiple parties are each “doing their own thing” 6 Bitcoin is the first! Plenty of physical currencies (commodities) Gold, silver, seashells, rocks … Plenty of centralized digital currencies PayPal, WebMoney, e-‐gold, WoW gold, Second Life, … Bitcoin is the first decentralized digital currency Invented in 2008 by “Satoshi Nakamoto”...
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...Unlike other businesses where the money a person earns for the company is never seen by the employee, a self employed business person reaps all of the revenues. Of course, there are bills and overhead costs to be paid, but a greater amount of profit goes to the business owner. Possibly the greatest aspect that self employed people can boast is their level of work satisfaction. To be so hands-on, always striving to improve the business, creates a sense of personal value. A self employed person can look at an overall product or outcome and feel satisfaction in what they have done or created. This is not usually the case for people who work for someone else. At the end of each day, Frimet can take pride in the money services business that he has created. Every small success leads to a desire to do more, be more. Robert Frimet could not see himself ever working for someone else again, there are too many positives associated with being self employed for...
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...EXECUTIVE SUMMARY TRENDS * Indian consumers are increasingly showing an interest in owning premium and luxury watches. This trend picked up traction in 2014 and 2015. Urban Indian consumers are perceiving watches as a fashion statement and are now willing to own more than one. This style trend has gathered momentum among both men and women consumers. The rising importance of watches as a fashion accessory among urban youth helped watches register retail value growth of 19% in 2015, with sales reaching Rs76.7 billion. COMPETITIVE LANDSCAPE * Titan Industries Ltd continued to be the clear leader in watches with a retail value share of 40% in 2014. The company also posted the biggest increase in actual retail values sales during 2014. The company’s top five brands – Titan, Fastrack, Sonata, Zoop and Xylys – performed well and received a good response from consumers. Also, the company has licensed brands Tommy Hilfiger, fcuk, Timberland and Police in the Indian market. The company has traditionally been the largest player in the watches category in India and has a presence in over 220 towns. It has over 400 World of Titan stores and over 150 Fastrack stores across the country to cater to its consumers. The company also has over 50 multi-brand outlets named Helios and is present with its shop-in-shop stores in large-format retailers, such as Shoppers Stop and Lifestyle. The company, in order to tap into the rising trend of internet retailing in India, operates its own e-commerce...
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...Cash’s Evolution to Digital Currency Tony Giuliani Business Finance 350 September 25, 2013 The other day I needed to fill up my car with gas, but when I got to the gas station by my house the pumps had a sign on them saying “Cash Only” due to an internet outage. This did not bother me as I had cash on hand but as I pumped my gas several vehicles pulled up, saw the signs, and left for another station. I even heard one person muttering about how inconvenient it was for them that the store could only take cash as they got back into their car. Now normally I pay for gas at the pump with a credit card even though I usually have cash on me, mainly because I do not have to deal with pre-paying and guessing how much gas I need, and I prefer to pump my gas and go about my day with a minimum of human interaction. This is a phenomena getting more and more common throughout a world where currency and coinage are quickly becoming items that people no longer carry as their primary instrument of payment and businesses would rather not accept. We all want a quantifiable measurement for what our wealth is but don’t really care if it is in actually hard currency or just expressed in the zeros and ones in the digital world. Call the money a Dollar, Euro, Pound, Deutschmark or any other name you want as long as we know, on paper, we have an amount of them is all we care about. Why have currency and checks become less and less important as a form of payment when they were once responsible...
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...Overview Society ismoving from a cash driven to a electronic payment system for the purchase or use of goods and services. The internet and mobile devices have become the market place of choice for transactions. Cash transactions are not possible through this election mercantile system. Bitcoin has risen to fill the need for electronic transactions. Bitcoin is a form ofdigital currency. Bitcoin has no government and no source of backed asset such as gold backing. The use of digital currency is being driven by several different issues. Such as the rise of rebellion of consumers who are seeking refuge from banks and taxation by governments. Consumers are losing faith due to the liquidation and taxation of the value of government back currencies. Bitcoin has become a currency that consumers can use like cash over the internet to avoid recording of the transaction. Another use is for payment of illegal activities anonymously. This report researches the rise and use of bitcoins and how it will challenge central government backed currencies. The Cyprus run on the banks George Kyprou, 62, born in Larnaca Cyprus, had worked most of his life as a chauffeur and driver in England, proudly buying his London council flat and scrimping to put aside money in Cyprus for when he returned for holidays and eventually to retire. "I'd put aside £50 here, £20 there, all my life," he said. Over decades, he had built up around €6,000 (£5,200) in a Larnaca account. "It was a state building society;...
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...BITCOINS: A VIRTUAL CURRENCY Submitted to- Professor Dilip Thosar Submitted by- Chidansh Choudhary Rashi Taneja Rashmi Khinvasara Ridhima Agarwal Sahitya Kalidindi Tejal Bhandari Date of submission: 24th December ‘13 EXECUTIVE SUMMARY: Virtual currencies are increasingly becoming a part of not only the virtual world but also in the real world. There are various problems associated with virtual currencies. Due to its similar nature to real currency, a lot of questions have risen regarding its acceptance among the people in the market, and the reliability factor. In the following paper, we have discussed the different types of virtual currencies based on their exchange factor. Bitcoins, a type 3 virtual currency is one of the most popular crypto currencies. We have discussed the characteristics and the process of transacting Bitcoins in detail, emphasizing on the pros and cons of its usage. We have also compared it with the ‘fiat’ money and mentioned its legal aspects. In the end we have mentioned a few areas for further research in relation to Bitcoins. TABLE OF CONTENTS: Sr no. | Content | Page no. | 1.2.3.4.5.6.7.8.9.10. 11. | IntroductionTypes of virtual currenciesIntroduction...
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