Bitcoin : A Threat And Opportunity For Auditing

Cryptocurrency is a digital asset that serves as a medium of exchange with no central authority and was created to prevent the issue of double spending. This problem is solved with the use of blockchains where miners confirm transactions on a public ledger. As of today, there are over 1,000 different types of cryptocurrencies, and at least 600 of these have listed market caps of over $100,000. Bitcoin, Ethereum and Litecoin are top cryptocurrencies trading today with their combined market cap topping $331B. Bitcoin, created in 2009, is the biggest cryptocurrency and has recently reached a net value of over $270 billion, with much of its growth being in the last few months. This has led to much

Considering vastness of the study and limitations of words and understanding, the author has tried to cover most of the parameters to judge the Australian economy in relation to the global economy trends and its implications. However, some of the newer areas of economic development have not been covered, specially in relation to the Australian economy. One of the most economically disruptive phenomenon is that of Bitcoin and its implications on the global economy. There are several other parameters and phenomenon that could not be covered by the Author in relation to limitation of time and words.

Consumers tend to be comfortable with virtual transactions and they also prefer payments using electronic systems to cash. There is an increase of accessing personal information to online platform (DeVries, 2016). However, the awareness of customer is likely to be a limiting factor for cryptocurrency to adapt into monetary market. According to Consumer Cryptocurrency Survey, there is only 6% of participants “very” familiar with cryptocurrency, particularly Bitcoin (PwC 's Financial Services Institute, 2015).

Some people only knew blockchain as the causal technology behind the always controversial digital currency Bitcoin. Yet, blockchain technology is so much, much more; it's unbelievably innovative and its potential is extensive to say the least. Much like the internet of today, there’s no need for you to know how this technology works to use

Cryptocurrencies provide consumers numerous advantages not discovered in fiat money. To start with, they are devoid of territorial boundaries. All existing cryptocurrencies can be used throughout the world-- the very first "real life" loan. As a result of their inherent decentralization, they could not be restricted, and also no cryptocurrency individual can be discriminated from various other cryptocurrency individual. This new economic climate is independent of any specific nation. Individuals have full control over the worth and also use of their cryptocurrency holdings, which suggests that customers do not depend on Central Banks or debt institutions. Cryptocurrencies can be dealt both for fiat currencies and also for various other cryptocurrencies, which offers customers higher leverage over the value of their possessions.

Institutions have failed to understand that bitcoins and blockchains have symbiotic relationships. The coin is an incentive mechanism to maintain security. Until the invention of Bitcoin in 2008, security and decentralization seemed like contrary concepts. Traditional models of financial transactions lie on centralized control to provide security. The architecture of traditional financial network is built around a central authority. As a result, security and authority had to be vested in that central actor. The resulting security model looks like concentric circle with very limited access to the center and increasing access as we move away from the center. However, even the most outermost circle, cannot afford open access. The entities near the

Bitcoin was created in 2009 as an international currency to make digital transactions easier and faster(Yellin). “This computerized money exists only as strings of digital code” (“A New Specie”). This currency is used without intermediaries

Currency acts as a store of value, a medium of exchange and a unit of account. Physical currencies are promissory notes payable to the bearer on demand. Digital currencies are internet-based form of currency. They represent both developments in payment systems and a new type of currency. Digital currencies, in hypothesis, serve as money, at present day they act as money to a small amount of individuals and institutions. It has been often questioned as whether the decentralised digital currency, such as Bitcoin and Litecoin, will emerge as the preferred method of payment for Internet Services or will remain a superficial payment method compared to well established existing payment systems.

Bitcoin is a platform which serves the role of intermediaries exactly as a traditional institution. It helps in making it harder to cheat in transactions and reduction in the value of credibility lent trusted intermediaries. A lack of trust becomes less of an impediment to trade opening up financial market participants (Obstfeld and Rogoff. 334). It is able to save cost, speeds up the clearing and settlement, as well as brings the reduction of the operational risks. It could also help implement tailor-made transactions protocol which means it would keep transaction detail confidential and the supervisors are able to receive the records as the same time. It improves the bargaining power of sellers and buyers when they deal with brokers which can be it’s most significant function (Dirk 1).

“The shift from a centralized technical infrastructure to distributed, ecosystem-enabling platforms is laying the foundations for new business models in investment insights and financial transaction technologies” (Bhatia). It will make commerce safer and more reliable. Blockchain is so secure because it is decentralized, it uses cryptography, and because of user integration. All three of these methods are laying the foundation for the future of commerce. Cash, credit, debit, PayPal, Venmo, and the current transactional system are becoming obsolete,it is time to move

Without deny, Bitcoin is a currency well-known for its association with the online gambling industry. Due to the user advantages it offers, more and more players begin discover the benefits of betting with the cryptocurrency. The limitless characteristics provided by the currency’s decentralization allow it to punch through the usual nuisances faced by online bettors.

The concept of cryptocurrency and ICOs are built on trust. If the tokens are fully implemented in all aspects, then there is trust within the community and technical solutions will be applied to provide the security of network. The remaining barriers to widespread adoption are likely to be overcome as the sector develops. This has profound implications for the future of financial mediation and central banking as there may not be a need to have a

Bitcoins, referred as magic internet money, the new currency of the future; the question is when is it going to become socially acceptable? Created in 2009, the Bitcoin is forcing world governments to react to the phenomenon of digital currency. The Bitcoin, valued today at $480.42, making it the most valued currency around the world by several hundred dollars. If this is true, why does no one invest nor pays attention to the threads of the miracle Bitcoin? Warren E. Buffett, investing titan, commented one day on the Bitcoin stating that it’s just a “mirage” and that any person thinking to invest in it should “stay away.” Many other Fortune 500 companies like J.P. Morgan and Wells Fargo have also taken opposition against the Bitcoin with the same reasons as Warren Buffett himself.

Bitcoin (BTC), a cryptocurrency, is a type of digital currency which was introduced in 2009 by pseudonymous developer "Satoshi Nakamoto". Since then 12 million bitcoins have come into existence with a current market cap of around 8 billion USD [1]. The algorithm is designed as to allow only 21 million BTC to come into existence ever. Bitcoin uses peer-to-peer technology to operate with no central authority or banks; managing transactions and the issuing of bitcoins is carried out collectively by the network [2]. Bitcoin is not the first attempt. But none have managed before to take off so dramatically and with such wide adoption to achieve escape velocity. The questions which are important now are how the bitcoin managed this success in

Due to the recent nature of this topic and how it will be discussed in this paper, there are very few reasonable scholarly sources available. There are a few from well-known publications and journals but none that touch on Bitcoin in the way I would like to discuss it. I have a few good sources to pull from but because the lack of scholarly sources, I will have to use sources such as Wikipedia and Bitcoin.org because they are the authoritative source of information for Bitcoin.