Example of the Assignmnet .pdf - Bitcoin-lastest Assignment International Trade and Finance(Swinburne University of Technology StuDocu is not sponsored

Example of the Assignmnet .pdf - Bitcoin-lastest Assignment...

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Bitcoin-lastest - Assignment International Trade and Finance (Swinburne University of Technology)
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FIN 30013 INTERNATIONAL TRADE AND FINANCE Topic 4: The growth in bitcoin: Critically assess the growth in relation to international finance
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Table of Contents What is Bitcoin ........................................................................................................................... 1 How Bitcoin works .................................................................................................................... 1 The growth of Bitcoin ................................................................................................................ 2 Advantages of Bitcoin ................................................................................................................ 3 Disadvantages of Bitcoin ........................................................................................................... 4 Impacts of Bitcoin in International Finance ............................................................................... 5 International Issues and Discussions .......................................................................................... 5 Conclusion .................................................................................................................................. 6 List of References
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What is Bitcoin According to Laha (2017), bitcoin is a virtual currency in digital form created by a mysterious programmer, Satoshi Nakamoto in 2009. It is the first decentralized cryptocurrency system which means that it is not controlled by a bank or government as a result bitcoin is more freedom (Clark 2013). The valuation of Bitcoin will not be affected by the political reason and it has its own value which depends on the demand and supply for it in the market. Bitcoin is traded peer-to-peer without third party and it is accepted as payment by both online and offline. There are two ways to acquire bitcoin which are mining online and purchasing through Bitcoins Exchange. How Bitcoin works Figure 1: How a block chain works According to How does Bitcoin work (2017), bitcoin is a network relies on a public ledger, which is known as block chain. Block chain enables the moving of bitcoin from one individual to others. It includes all the confirmed transactions and encodes the information onto bitcoin itself. Therefore, bitcoin wallets can calculate the balance for users to verify the new transactions. Two keys are required for each transaction which are public key and private key (Khatwani 2017). Public key is for everyone to verify the transactions while private key is a secret data that kept in bitcoin wallets for signing the transactions. Private key is a length of number generated for every bitcoin user to confirm their identities and allow 1
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them to make payments or receipts. The owners must keep their private keys securely in order to prevent the transactions from being altered by others. Next, all transactions are manifested to the users and the transactions will be confirmed then recorded to the block chain through ‘mining’ process in order to ensure the validity of the transaction (Tripathi 2017). The growth of Bitcoin Figure 2: The growth of Bitcoin According to Jessop (2015), bitcoin was registered on 18 August 2008. In November, Satoshi released a paper titled Bitcoin: A Peer-to-Peer Electronic Cash System. In January 2009, the first block named ‘Genesis’ was launched for mining and the first transaction took place. In 2010, bitcoin reached $1 million and there was the first offline transaction known as “Bitcoin Pizza” transaction, which a person paid 10,000 bitcoin for two pizzas (Desjardins 2017). In 2011, bitcoin hit “dollar parity” and an illicit drugs marketplace, Silk Road was established. It was said that 1,000 merchants started accepting bitcoin in 2012. Bitcoin was ruled as a currency following the end of Silk Road and it reached $1 billion in 2013. In 2014, the price of bitcoin fall with the shutdown of Mt. Gox, the biggest bitcoin exchange. In 2015, New
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  • Spring '20
  • International Monetary Fund, Global financial system, Bitcoin-lastest

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