Syftet med denna uppsats är att undersöka Bitcoins egenskaper och funktioner samt diskutera dess eventuella påverkan på dagens ekonomiska system. Den forskning som publicerats på ämnet undersöker främst tekniska och säkerhetsmässiga detaljer, det är därför intressant att analysera ur en ekonomisk synvinkel. Genom att använda makroekonomisk teori ska jag försöka klargöra om Bitcoin kan konkurrera med dagens valutor. Bitcoins volatilitet i värde gör det tvivelaktigt, en volatilitet som inte kan kontrolleras. Bitcoin uppfyller delar av de funktioner och egenskaper som definierar en valuta enligt makroekonomisk teori, men inte lika många som fiatpengar och Bitcoin bör därför inte kunna konkurrera med dagens valutor. Fiatpengar är att föredra även i andra områden som acceptans och säkerhet. Bitcoin är bättre ur ett kostnadsperspektiv, dock under specifika omständigheter som sällan uppfylls. Bitcoin kommer därför tills vidare fungera som ett alternativ betalningssystem och valuta för personer och företag som är villiga att ta de risker som medföljer.
A private initiative that has created a virtual currency and a payment system based on cryptography and decentralized management, Bitcoin is considered not only an interesting, but also a disruptive technical innovation by many observers. A number of regulatory and supervisory bodies have issued assessments of the phenomenon, contributing to an emerging international discussion. Does Bitcoin’s claim to provide useful monetary and payment services hold up when checked against principles of monetary theory and the economics of payment systems? We find that while Bitcoin does not rival the established money and payment systems in their traditional domains, a complementary function is conceivable in niches. Using the Bitcoin network poses several risks to customers, however. Since this network and financial services related to bitcoins are not regulated, costumers must take appropriate technical measures to protect their bitcoin holdings. In case of error and fraud, payments are difficult to reverse. Furthermore, the significant exchange rate fluctuations could pose a grave risk to bitcoin owners’ wealth and discourage widespread use for monetary purposes. In a nutshell, at present, bitcoins can be regarded as speculative assets, and the Bitcoin network might inspire further innovation in payment systems and other applications.
Bitcoin has enabled competition between digital cryptocurrencies and traditional legal tender fiat currencies. Despite rapidly increasing acceptance, so far the affirmation of cryptocurrency as better money has been thwarted by dramatic deflationary price instability. Successful at disposing of any central monetary authority, bitcoin has elected to have a fixed deterministic inelastic monetary policy, establishing itself more as digital gold than as a currency. Price stability could be achieved by dynamically rebasing the outstanding amount of money: the number of cryptocurrency units in every digital wallet is adjusted instead of each single unit changing its value. The apparent awkwardness of this unfamiliar paradigm is discussed at length, proving that its only real novelty is about fairness and effectiveness. Furthermore, suggestions are provided about how to ease the effect of contractionary monetary policy. The proposed monetary base adjustment has neutral impact on the overall wallet wealth, as it does not introduce any arbitrary distortion into the intrinsic value dynamics of the wallet. The adjustment is based on a commodity price index determined with a resilient consensus process that does not rely on central third party authorities. It is posited in this paper that a digital cryptocurrency adopting elastic monetary standard is Hayek Money, so named from the Nobel Prize-winning economist: a good money standard providing stable prices for a new economic era.
A virtual currency can be defined as a type of unregulated, digital money, which is issued and usually controlled by its developers, and used and accepted among the members of a specific virtual community. The recent developments in widely spread internet and data mining activities, highlighted the issue of accepting and using virtual currencies for different purposes, including, buying commodities or services, saving, as well as converting into real currencies, such as US dollars, euro or other currencies. One of the most controversial and the most advanced virtual currency scheme to date is the one so-called Bitcoin, designed and implemented by the Japanese programmer Satoshi Nakamoto in 2009. Although the use of Bitcoin might have positive impact on financial innovation and the provision of additional payment alternatives to consumers, it also might increase the risks in financial payments, exchange rates of real currencies, as well as increase the possibility of money laundering, using them for illegal deeds. Therefore , the purpose of this paper to clarify the main characteristic of Bitcoin, and analyze its positive aspects as well as the threats that may occur to the modern world economy , in case the usage of this money , significantly increases .
In January 2009 the Japanese software-designer SATOSHI NAKAMOTO invented a virtual currency named Bitcoin and released software for managing transactions in the new money.It consists solely of bits and bytes, but we cannot see it as a coin or banknote on the market.There is no cover in terms of gold or stocks, for example -in fact, nothing but the source code of the software which consists of thirty-one thousand lines of code.NAKAMOTO wanted to create a currency immune to potentially predatory bankers and politicians and so the currency and the mechanism to acquire Bitcoin were controlled entirely by software.The payment system is completely decentralised and so contains no central organisation which monitors transactions.Many people use this new currency to pay for services or products on the Internet, since it is no less safe than traditional payment systems.In this paper I will first introduce the basic parameters and functions of the alternative currency, and will deal especially with security and privacy issues relating to the virtual money.After that I will examine the value of Bitcoin on the online market, especially answering questions such as how we can acquire it.After this the legal background will be presented and suggestions made for its possible regulation, whilst its likely role in criminal behaviour is suggested.The paper was written in order to stimulate interest in this special, new currency, its working mechanisms, advantages and possible dangers, and because it represents a unique paradigm-shift, not simply in cyberspace, but in real-world payment systems also.
Bitcoin is a new kind of money, which means a digital currency which can be used for commercial purposes. Over time, the trade has evolved from barter to the use of the precious metals as money, then to the coins with intrinsic value and to the symbol coins and later to the use of the electronic money, reaching at present to a virtual currency, created and used through the internet network. Bitcoin promises to its users getting high returns under conditions of low risk arising from transactions carried out instantly, without intermediary bank and almost no fees. At this moment, Bitcoin is still an experimental new currency, but in the future it can offer an alternative to previous costly systems and it can increase online business access to developing countries.
The worldwide economic recession and the concomitant limited stock of finances have had an influence on the available money of every household and have also inhibited the improvement of socio-economic conditions and medicine. The Reconstruction and Development Programme (RDP) has the objective of improving the living conditions of the people with regard to housing, education, training and health care. The latter seems to be a major problem which has to be addressed with the emphasis on the preventive and promotional aspects of health care. A comprehensive health care system did not come into being property in the past because of the maldistribution of health care services, personnel and differences in culture and health care beliefs and values. The question that now arises, is how to render a quality health care service within the constraints of inadequate financing and resources. A comprehensive literature study has been done with reference to quality health care and financing followed by a survey of existing health services and finances. Recommendations are made about minimum requirements to be accepted if one were to adapt rather than die in terms of the provision of healthcare: the decentralization and rationalization of the administration of health care, the stress on and realization of effective and efficient primary health care, the acceptance of participative management in health providing organizations, the provision of financial management training for health care managers and the application of management accounting principles for the improvement of the efficiency and effectiveness of management.