Digital Economy refers to an economy that is based on digital computing technologies. The digital economy is also referred as the internet economy, the new economy, or web economy. The term “Digital Economy” was introduced by Don Tapscott’s in his 1995 Book- The Digital Economy: Promise and Peril in the age of networked intelligence. It was among the first books to consider how the internet would change the way we did business. Bitcoin is a cryptocurrency and worldwide payment system. Bit coins runs in peer-to-peer network system where the transactions take place between users directly using cryptography.
Bitcoin is the first decentralized digital currency. Bitcoin was invented by an unknown person or group of people under the name Satoshi Nakamoto in 2009. These transactions are verified by network nodes and gets recorded in a public distributed ledger. This ledger is widely known as block chain. Block Chain is a public ledger that records bitcoin transactions. The maintenance of these block chains is performed by a network of communicating nodes running bitcoin software.
The value of Bit Coin is exceeding over time every day. The current value of coin is 17239.99 US Dollar, i.e. almost 18000 US Dollar per each coin. Bitcoins can be used to buy merchandise like: books, furniture, Xbox as well as to book hotels on Expedia anonymously. International payments are cheap and easy since Bit coins are not tied to any country or subject to any regulation. Small businesses like them because there are no credit fees and some people just buy them as an investment, hoping that they will go up in value. There are market places which works as a loop for buying and selling of bitcoins using different currencies. These market places are called “Bitcoin Exchanges”. Coin base is a leading exchange, along with Bit stamp and Bitfinex. These Bitcoins are generated by a competitive and decentralized process called “mining”. Bitcoin miners are processing transactions and securing the network using specialized hardware and are collecting new bitcoins in exchange.
Bitcoin has been giving the Republican tax plan a run for its money when it comes to who has been dominating the news over the past week. One of the interesting fact about Bitcoin is that, it’s floor value is zero and does not pay any interest. There is no asset value attached to it except what the markets gives it and it has no central bank supporting it.To prevent fraud, the bitcoins software maintains a pseudonymous public ledger of every transaction. Bitcoins can be stored in a variety of places from a wallet on a desktop computer to a centralized service in the cloud. On the so-called secret internet, the black-and-gray market site Silk Road anointed the bitcoin as the coin of the realm. A young bit coiner, The Real Plato, brought on the road into the new millennium by video-blogging a cross-country car trip during which he spent only bitcoins. Both the code and the idea of bitcoin may have been impregnable.
Some users protected their bitcoins by creating multiple backups, encrypting and storing them on thumb drives, on forensically scrubbed virgin computers without internet connections, in the cloud and stored in a safe-deposit boxes. But even some sophisticated early adopters had trouble keeping their bitcoins safe. Non-technical newcomers to the currency, expecting it to be easy to use, were disappointed to find that an extraordinary amount of effort was required to obtain, hold and spend bitcoins. . People receiving bitcoins won’t have to pay anything for the transactions. Bitcoin mining is a competitive market, and so the resources expended line up with the opportunities to earn revenues. This process could theoretically be done with much fewer resources by an honest central authority. These processes can be accomplished in a decentralized way by mutually disinterested agents, but at the cost of consuming many more resources.
One of the easiest way to buy bitcoins was to use pay-pal to buy Linden dollars, and to trade them within that make-believe universe for bitcoins. Bitcoin has become a source to resentment. Crypto currencies have been drawing significant interest over the last several months. The growing visibility is evident in both google trends search data and also the rising market values of the digital currencies themselves.
Zack Friedman, founder and CEO of “Make Lemonade” whose career has included stints as CFO of a global energy company, hedge fund investing and jobs with “The Blackstone Group” and Morgan Stanley, said cryptocurrencies have undisputed advantages but an uncertain future. But security can be a concern. Bitcoins worth tens of millions of dollars were stolen from Bitfinex when it was hacked in 2016. “Blockchain technology, which is the backbone of digital currency, has the potential to disrupt financial services by reducing the cost and complexity of financial transactions”. One of the greatest benefits of cryptocurrency is that, it cannot be counterfeited, and transactions cannot be reversed arbitrarily by the sender. It uses a “push” model which prompts the cryptocurrency holder to send exactly what they want to the seller without any other form of information. Cryptocurrency is not bound by exchange rates, interest rates or transaction charges. In addition, digital currency transactions take place at the same speed, regardless of where the sender and receiver are located.
Despite the popularity and positive price performance, digital currency is not without risk. The common risk being price volatility and regulatory intervention. While cryptocurrencies have experienced explosive growth, they currently remain a relatively small part of the global financial ecosystem. Regulators and policymakers will continue to monitor cryptocurrencies to determine any potential impact to financial stability or broader system risk. The future of cryptocurrency means allowing you to have ultimate control over your money, who you send it to, and what type of fees you don’t have to pay. It is slowly becoming one of the fastest adopted forms of online payments. The benefits of cryptocurrency in today’s economy could appear to be earth-shattering, breaking down the geographical barriers. Cryptocurrency doesn’t come without risk, so one should become familiar with key concepts before becoming an investor.
Bitcoins are even referred as gold mines nowadays because of it’s rising value. The steep rise in the value of cryptocurrencies is, depending on your risk tolerance, a compelling lure to get in or a likely sign of a coming fall. Despite Bitcoin being the best-known cryptocurrency around, others have entered the market, one of which is Academy Coin. Academy coin is a cryptocurrency that enables teachers and other forms of educators to receive payments from their students, fans, or members. Currently, as cryptocurrencies operate outside the control of the government, and because of that reason there is concern about the illegal operations and various international security issues that comes with such new technology. Government across the world are jumping on the cryptocurrency bandwagon, meaning that the entire industry could change dramatically in the upcoming years. Because of the cryptocurrency, instead of paying various platforms to gather data, one could pay their customers directly as the blockchain prohibits anyone entity from controlling networks, it will be more difficult to know about the buyers. Cryptocurrencies eliminate the annoyances of traditional payments methods. Cryptocurrencies cut out the annoyances. There are no fees attached to these digital currencies because they are not owned by anyone. Instead of being driven by profit and owned by large corporations and government entities, cryptocurrencies were invented by people, for people.
Some of the advantages of Bitcoin is that there is freedom in payment and it allows users to be in control of their transactions and helps to keep bitcoin safe for the network. All the Information is transparent because of the block chain.The purchase of Bitcoin are discreet and there is also a fewer risks for merchants.The transactions fees is also very low and the transactions are not taxed.Bitcoin users can pay for their coins anywhere with internet access. There are also some disadvantages of Bitcoin. People are not aware of the digital currencies. Bitcoin has volatility due to the fact that there is a limited amount of coins but the demand is increasing by each passing days. According to the news and research, as much as medias and trading centers begin to accept bitcoins, its price will eventually settle down. Another disadvantage of bitcoin is that, bitcoin is not accepted worldwide and the valuation fluctuates time to time. There is also no valuation of guarantee of bitcoin.
Bitcoin as you can see, is not perfect. It has many advantages that physical currencies do not provide it’s users, however it also has it’s disadvantages. As a matter of fact, bitcoin is still a relatively young and new currency with limited stocks. People are just becoming aware of it and majority of people needs to understand it’s importance in order to succeed. Since they are an international currency, you can use them in any country without having to convert between currencies. The blockchain is really secure and it lets you make sure that your money goes to/comes from the right person.