Bitcoins: It is a virtual and digital version of cash emerging as a global payment platform that can be used through
smart phones, tablets, and other devices. Bitcoin was introduced in 2009 by pseudonymous developer Satoshi
Nakamoto, when the global financial crisis led to distrust of Banks and Government was high. It is a peer-to-peer
payment network and digital currency based on an open source protocol, which makes use of a public transaction log.
When paying with Bitcoin, there will be no exchange of digital notes or tokens between buyer and seller. Instead, the
buyer requests an update to a public transaction log which shows ownership of the coins and is maintained by a
decentralized network that verifies and timestamps payments. What makes Bitcoin unique is that there is a record as to
who possesses it, and there is a network that records transactions and there is no way to increase the number of
Bitcoins in existence. It works on Cryptography proof that allows any two willing parties to transact directly with each
other without the need for a trusted third party - whether it is State or Bank or Regulator. Bitcoin is fast evolving in
terms of merchant adoption. Many large business houses, including Microsoft, Dell, PayPal, Dish Network, Expedia,
NewEgg and TigerDirect have adopted it. Bitcoin helps businesses save on transaction cost and settlement time and
mitigates risks related to foreign exchange. Bitcoin may be well suited to facilitating cheap cross-border money
transfers. However, these coins lack intrinsic value as their value depends only on the willingness of users to accept
them. Further, the big psychological hurdle in its usage is inability to reverse or recall transaction.
At present, the usage of virtual currency is not authorized by any central bank or monetary authorities. Israeli is in
forefront in creating tools to facilitate the Bitcoins to be used in many ways such as buying of products, sending
remittances and investments in stock market. The United States is currently considered to be Bitcoin friendly compared to
other nations. On the flipside, there are concerns with regard to maintenance of its value, KYC compliance, taking undue
advantage of the system (unlawful activities) by unscrupulous persons/agencies and lack of consumer protection.
Recently, the Central Banks of Europe, China and India expressed their concerns about the usage of the unregulated
currency. As on 1st January 2017, it is estimated that 15 million Bitcoins are in circulation across the globe and the value
of one Bitcoin reportedly quoted at $1000. Definitely, it is going to be a game-changer in virtual currency arena provided
it crosses regulatory hurdles.
smart phones, tablets, and other devices. Bitcoin was introduced in 2009 by pseudonymous developer Satoshi
Nakamoto, when the global financial crisis led to distrust of Banks and Government was high. It is a peer-to-peer
payment network and digital currency based on an open source protocol, which makes use of a public transaction log.
When paying with Bitcoin, there will be no exchange of digital notes or tokens between buyer and seller. Instead, the
buyer requests an update to a public transaction log which shows ownership of the coins and is maintained by a
decentralized network that verifies and timestamps payments. What makes Bitcoin unique is that there is a record as to
who possesses it, and there is a network that records transactions and there is no way to increase the number of
Bitcoins in existence. It works on Cryptography proof that allows any two willing parties to transact directly with each
other without the need for a trusted third party - whether it is State or Bank or Regulator. Bitcoin is fast evolving in
terms of merchant adoption. Many large business houses, including Microsoft, Dell, PayPal, Dish Network, Expedia,
NewEgg and TigerDirect have adopted it. Bitcoin helps businesses save on transaction cost and settlement time and
mitigates risks related to foreign exchange. Bitcoin may be well suited to facilitating cheap cross-border money
transfers. However, these coins lack intrinsic value as their value depends only on the willingness of users to accept
them. Further, the big psychological hurdle in its usage is inability to reverse or recall transaction.
At present, the usage of virtual currency is not authorized by any central bank or monetary authorities. Israeli is in
forefront in creating tools to facilitate the Bitcoins to be used in many ways such as buying of products, sending
remittances and investments in stock market. The United States is currently considered to be Bitcoin friendly compared to
other nations. On the flipside, there are concerns with regard to maintenance of its value, KYC compliance, taking undue
advantage of the system (unlawful activities) by unscrupulous persons/agencies and lack of consumer protection.
Recently, the Central Banks of Europe, China and India expressed their concerns about the usage of the unregulated
currency. As on 1st January 2017, it is estimated that 15 million Bitcoins are in circulation across the globe and the value
of one Bitcoin reportedly quoted at $1000. Definitely, it is going to be a game-changer in virtual currency arena provided
it crosses regulatory hurdles.
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