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F159 Bitcoin .edited

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Business Law

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Homework

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07Nagbal

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Running head: BITCOIN 1

Bitcoin

Institution Affiliation

Date

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BITCOIN 2

Introduction

Business transactions can be handled using the physical currency of digital currency.

Digital currency has properties that are similar to physical currency even though it is

electronic in nature and it comes in two varieties, cryptocurrency, and virtual currency.

Bitcoin is an example of a digital currency that is a cryptocurrency in nature (Meiklejohn et

al., 2016). Bitcoin was invented in 2009 by a group of unknown people who called

themselves Satoshi Nakamoto. In the same year, Bitcoins became the first digital currency

that was decentralized. Just like physical currency, Bitcoin can be used to purchase products

and services.

Nature of Bitcoins

Bitcoins are digital in nature and are given as a reward for mining. They are issued

and managed without any central authority since there is no institution that can claim to be in

charge of Bitcoin. Since Bitcoin is not regulated by anyone, it is, therefore, more resistant to

inflation and corruption. An individual who owns bitcoins can be their own bank and one

does not need to know the technical details before making use of them. One can also hold the

bitcoins as an investment. In order to be able to use Bitcoins, an individual must, first of all,

install a Bitcoin wallet on the device they will be using. A Bitcoin address will then be

generated and one can create more as the need arises. The address can then be shared by their

friends.

Bitcoins do not exist in their physical form and any balances are kept in a public

ledger that is kept in the cloud. All transactions are also kept in the cloud and any verification

is done through the use of powerful computer systems (Perugini et al., 2014). There is no

financial institution or government that backs the use of Bitcoins. An individual Bitcoin does

not have any value as a commodity. Despite the fact that Bitcoins are not identified as legal

tender, they have gained popularity and the number of users has increased.

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Running head: BITCOIN 1 Bitcoin Institution Affiliation Date BITCOIN 2 Introduction Business transactions can be handled using the physical currency of digital currency. Digital currency has properties that are similar to physical currency even though it is electronic in nature and it comes in two varieties, cryptocurrency, and virtual currency. Bitcoin is an example of a digital currency that is a cryptocurrency in nature (Meiklejohn et al., 2016). Bitcoin was invented in 2009 by a group of unknown people who called themselves Satoshi Nakamoto. In the same year, Bitcoins became the first digital currency that was decentralized. Just like physical currency, Bitcoin can be used to purchase products and services. Nature of Bitcoins Bitcoins are digital in nature and are given as a reward for mining. They are issued and managed without any central authority since there is no institution that can claim to be in charge of Bitcoin. Since Bitcoin is not regulated by anyone, it is, therefore, more resistant to inflation and corruption. An individual who owns bitcoins can be their own bank and one does not need to know the technical details before making use of them. One can also hold the bitcoins as an investment. In order to be able to use Bitcoins, an individual must, first of all, install a Bitcoin wallet on the device they will be using. A Bitcoin address will then be generated and one can create more as the need arises. The address can then be shared by their friends. Bitc ...
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Tags: law cyber