Bitcoins - International Impact of Virtual Currencies3723818
Bitcoin is a payment method invented by Satoshi Nakamoto who released it in 2009 as an open-source software. Claims to the identity of Nakamoto have by no means been verified, but the Bitcoin has progressed from obscurity to the biggest of its type, a digital asset now becoming called the 'cryptocurrency'.
The most significant characteristic of Bitcoin is that in contrast to standard and traditional printed currency, it is an electronic payment method that is primarily based on mathematical proof. Conventional currencies have centralized banking systems that control them and in the absence of any single institution controlling it, the US Treasury has termed the Bitcoin a 'decentralized virtual currency'. The underlying concept behind Bitcoin was to create a currency completely independent of any central authority and 1 that could be transferred electronically and immediately with almost nil transaction fees.
By the end of 2015, the number of merchant traders accepting Bitcoin payments for products and services exceeded one hundred,000. Major banking and monetary regulatory authorities such as the European Banking Authority for instance have warned that customers of Bitcoin are not protected by chargeback or refund rights, although financial experts in major monetary centers accept that Bitcoin can provide legitimate and valid monetary solutions. On the other hand, the increasing use of Bitcoin by criminals has been cited by legislative authorities, law enforcement agencies and financial regulators as a major cause of concern.
The owner of Bitcoin voucher service Azteco, Akin Fernandez comments that there will shortly be an important game-changer in the manner Bitcoin is generated. The rate of Bitcoin generation every day will be literally 'halved' and this may alter the perception of Bitcoin totally, even though it will be nearly not possible to predict how the public at big and the merchants will react to such a move.
Against the backdrop of such a move, the predictions are that the transaction volume of Bitcoin is set to triple this year riding on the back of a probable Donald Trump presidency. Some market commentators are of the view that the price of the digital currency could spike in the event of such a possibility top to marketplace turmoil globally.