Answer To: LPC UTEC3015spring 2019Coursework Brief UTEC3015 Understanding Technology Spring 2019 Coursework...
Soumi answered on Mar 03 2021
BITCOIN AND DIGITAL CURRENCY SYSTEM
BITCOIN AND DIGITAL CURRENCY SYSTEM
Current Status of Bitcoin and Cryptocurrncies in the World
Cryptocurrency originated in the form
of Bitcoin, in 2008
Bitcoin is banned in Nepal, Pakistan, UAE, Egypt, China, Iran, Indonesia, Bangladesh
In Japan and USA Bitcoin is allowed
Bitcoin’s value went down in 2018, where its prices reached only 25% of its previous value
The genesis of the cryptocurrency in the form of Bitcoin, in 2008, has officially been the second generation of attempts for creating digital currency; however unlike the previous generation of centralised digital currency, cryptocurrency has been decentralised and widely popularised for its convenience and the capability of avoiding double spending, which is a mandatory part of traditional financial systems.
As mentioned by Watson (2018), despite the gradual simplification and availability of the data about cryptocurrency, especially Bitcoin, it still not properly assessed by majority of the people and due to the lack of centralised authority and high risk factors, it has been absolutely banned in countries such as Nepal, Pakistan, UAE, Egypt, while implicitly banned in China, Iran, Indonesia, Bangladesh, while in countries such as Japan and USA (Library of Congress, 2019).
It is observed that in 2017, the value of Bitcoin increased many times, while its value went down in 2018, where its prices reached only 25% of its previous value. Considering the global events such as Brixit and hacker attack vulnerability in addition of personalised risks, Bitcoin along with Litecoin, Ethereum and Ripple are becoming very difficult to sustain and manage value (The Guardian, 2019).
Based on the current trend of cryptocurrncies it can be said that there are too much risk involved in cryptocurrency transaction and it is radically different than the traditional financial systems, which are the major reasons for its banning by reserve banks. However, considering the value cryptocurrncies are capable of providing, it can be said that there is ample scope of growth although for which, the current condition have to be overcome at first.
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Buying of Bitcoin
Step 1: Register on Bitcoin Exchange and Get Bitcoin wallet
Step 2: Make Payment for Bitcoin through banks or card
Step 3: Own Bitcoin equivalent to the payment
The buying process of Bitcoin is very easy and any person with ample monetary resources and a legal identity can buy Bitcoin or any other cryptocurrency. As mentioned by Yaya et al. (2019), firstly, a person must create a Bitcoin wallet for registering him or herself in the Bitcoin Exchange. Once the wallet is created, using the regular currency a person can buy the desired amount of Bitcoin, considering the equivalent amount he or she...