Bitcoin refers to a digital currency which runs as a devolved fiscal open source software and offers an ideal blend of online transactions, digital encryption, cryptography, and peer-to-peer interactions. Similarly, it could be applied for cash deals or as a defensive hoard or store of digital currency and is not charged. In the realm of Bitcoin, mining denotes to the transaction processing whereby transaction annals of contemporary Bitcoin public record referred to as blocks, are summed up to the record on preceding dealings called the blockchain (Singhal & Rafiuddin 2014). It is apparent that Bitcoin offers a reward for the mining facilities given by various “miners” all over the world. As such, this is an obligatory enticement, as shorn of the miners, the Bitcoin technology would not be in a position to function.
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There is a mining puddle which is essentially a sum of miners mining on chunks as a cluster. Despite the fact the blocks are mined more rapidly, the recompenses must be shared in line with the struggles put in by distinct miners as likened with the whole cluster (Ciaian, Rajcaniova, & Kancs 2016). It is clear that the network produces a extreme of 50 Bitcoins per block; as well, this figure lessens gradually with the application of the software, and it is as a result of premeditated such that no above 21 million Bitcoins is real internationally.
From this study, it is clear that online banking has widely developed even via mobile banking. From the fact that there were about 167 currencies worldwide by 2012, digital currency seems to greatly help in easing internationally-based transactions; thus, the growth of the global economy (Ciaian & Rajcaniova 2016). Singhal & Rafiuddin 2014 argues that, “a Bitcoin’s price is computed by its demand as well as demand.”
Purpose of the study:
The aim of this study is to explore the effect of Bitcoin amid individuals and the global economy. For that reason, this paper attempts to outline and emphasize how the application of Bitcoin could progress in various thrifts of the world in a similar approach. As such, it appears that the motives of the global currency as being social and political in nature. It is evident that governments and citizens confer sentiments as well as pride in what signifies their country, which encompass their anthem, flag, and currency (Ciaian & Rajcaniova 2016). Furthermore, the aim of this study is to examine the application of Bitcoin to further the basis for technical development, hearten free trade and dealings, and stock fiscal entireties in a secure depository, while appraising numerous facets of Islamic Banking and evaluating if Bitcoin is acquiescent with the studied ideologies, and maintaining the idea of a technologically progressive global economy (Singhal & Rafiuddin 2014). To some extent, the range of this exploration is confined to Dubai to comprehend development. However, the findings of this investigation are not restricted to Dubai since the place is a case economy and rather not the focus of research. As such, the findings represent the effects of the Bitcoin in the global economy.
In line with the discussion above, the global economy is absolutely affected by the manner in which Bitcoin is accepted and used. Thus, the research question is: in what ways is the global economy affected by the approval and application of Bitcoin as a mode of transaction worldwide?
As likened to other extents in the fiscal structure, Bitcoin is in the early emerging phase and comparatively, explorations are imperfect (Ober, Katzenbeisser, & Hamacher 2013). It is apparent that currency has unceasingly progressed over the past centuries transversely the world in accordance with the rules and the value consistent with the conversation rate variations (Ciaian & Rajcaniova 2016). The design of Bitcoin has a verge of error and has been permitted for the scam as it has been managed as an inevitable and unavoidable aspect. It is clear that Bitcoin applies the perception of worldwide digital solitary moneys which permits for cryptographic evidence in lieu of belief, and deals with the difficult of over-production of ancient cash that leads to price increase, amid other numerous aids. Furthermore, it maintains a record of every deal in what is referred to as blockchain (Ciaian et al. 2016). According to research, blockchain operates as a public ledger for every deal ever accomplished, and thus every Bitcoin has a past that could be drawn (Singhal & Rafiuddin 2014). Four variables that include security, regulation, accessibility, and acceptance are acknowledged in the bionetwork of Bitcoin at large in conjunction with human factor besides the technical aspect.
According to Singhal & Rafiuddin 2014, there is a need for a common currency by 2024 in all world’s 191 states besides a monetary combination to jointly save the deal dues. This work relies on the study of an economy as well as evaluating the effect that Bitcoin would have on it. For the investigator’s suitability as of imperfect capitals, the Dubai’s economy has been selected as the case economy area (Ciaian et al. 2016). It is apparent that Dubai has established its approach towards developing to being a “Smart City”, in a span of 3 years via the relations of all government amenities and offering them for laid-back access and permitted application, accessible and effective via the application of smart expedients (Ciaian et al. 2016). It pursues to link administration, education, public safety as well as public health sectors. In line with Dubai’s idea of a “smarter” economy in addition to its predisposition towards generating the heart for Islamic frugality in the Middle East, a study is done to discover the effect on Islamic Banking. Regardless of banking performs, this study could be inferred to the thrift of a different nation pertaining to its surroundings, economic, and, financial circumstances (Ciaian & Rajcaniova 2016). It is evident that Islamic Banking is administered by the ideologies of Shari’ah. In line with a recent study, it is abridged that money is either treasurable or food, is plentiful and easily accessible and does not indulge or disintegrate, has fundamental charge, subsists in the generation and operates as a method of exchange. In this study, it as well tried to determine the magnitude where Bitcoin is in configuration with these ideologies.
Bitcoin being a worldwide coinage, it has been a global debate (Nakamoto 2009). The study has exposed that various benefits that come with such a financial set-up. One of its rudimentary advantages would be embedded on the shared resident who strategizes on conveying and obtaining cash. In the present state, they are enforced to compensate hefty duties for global dealings, which is difficult that Bitcoin unravels for the residents. For the similar motives, even cosmopolitan companies stand to profit from the outlined benefit (Ciaian et al. 2016). It is evident that Vancouver is habitat to the initial Bitcoin Automatic Teller Machine (ATM). With an astounding sum of diverse currencies and money conversion appears to come with business charges along with a service fee for organizations that perform the service (Hurlburt & Bojanova 2014). It is evident that the removal of numerous currencies could save lots of resources and scratch needless spending. As such, this is not only a concept but also a run-through in certain global regions (Singhal & Rafiuddin 2014). “The unsurpassed instance of solitary currency is Euro simplicity of financial dealings amid the EU affiliates” (Ciaian et al. 2016). From the approval of a common currency, the European Commission projected that up to 20 billion of Euro were per annum saved. It is apparent that free trade is forbidden by the variance in currency conversion charges, nearby nations that run beneath a single currency seem to trade and conversion further frequently with one another.
H1: Bitcoins could instigate fast and secure global transactions. As such, there would be more international dealings, which would in turn lead to worldwide economic growth (Singhal & Rafiuddin 2014). The figure below shows a simple model on how Bitcoin operates.
H2: Bitcoin could be precarious to the global economy as it lacks guaranteed valuation, physical form, buyer protection, and because it is built in deflation. As such, it would unsafe and thus many people would have fear on using it; thus, global economic growth would slow down as there would be more losses if Bitcoin could be approved by many nations as a global crypto-currency for carrying out transactions (Vigna & Casey 2016).
Question 1: What is the definition of a digital currency?
It is a form of currency accessible only in digital form.
Along with the question 1’s outcomes, it is clear majority of the business specialists agrees with the above definition of Bitcoin.
Question 2: What is the history of Bitcoin?
It was established in 2009 by unknown person employing the name Satoshi and freed as open-source software. Bitcoin started operating in March 2010.
As shown in this graph, majority of the people understands the history of Bitcoin and have agreed with it.
Question 3: What are the pros and cons of Bitcoin?
They include easier worldwide transactions, lower transactional charges, high privacy and anonymity, extensive approval as a payment method, and superior liquidity.
They comprise high price volatility, lack of chargebacks, environmental ills on mining, possibility of replacement by superior crypto-currency, and exposure to precise fraud and scams.
As evidenced in the graph, majority of the respondents agreed with some of the mentioned pros and cons of Bitcoin.
Question 4: What is the future of Bitcoin?
Experts maintain the world is headed to the application of technology-centered currencies like Bitcoin. It is anticipated to be valued over $25,000 in 2019.
From the above graph, it is clear that majority of the respondents were unsure of the Bitcoin’sfuture.
Question 5: Why do Bitcoin exchanges quote different prices?
Its prices differ relying on the exchange that one is purchasing. This depends on aspects like volume on an exchange.
The above graph shows that majority of the business specialists agreed with the mentioned reasons as to why Bitcoin exchanges quote different prices.
Question 6: Is Bitcoin money?
It is not money as the crypto-currencies are not knotted to any nation or allotted by governments and do not fit beneath the description of an ancient currency.
From the above graph, it is clear that majority of the respondents affirmed that Bitcoin is not money.
Question 7: Do you know the difference between bitcion and other currencies?
Bitcoin’s dealings are listed on its blockchain, has no central authority, and only conditional to inflation due to insufficiency generated by an artificial confine.
From the graph, it is evident that either majority of the respondents did not understand the difference between Bitcoinand other currencies, or they did not agree with the outlined difference.
Question 8: What are the reasons for using Bitcoin?
It is fast, confidentiality oriented, secure, technology-oriented, international, and unconditional on inflation.
It is clear that many people understand the use of Bitcoin.
Question 9: Do you think that Bitcoin will be alternative to tangible currencies?
It would be problematic for Bitcoin to become an alternative to tangible goods and possibly would develop to being obsolete when other crypto-currencies will turn to being better substitutes for payments as well as trading. However, if it is given time and a lot of resources, investment, and attention put on it, things could change.
From the graph, it is apparent that majority of the respondents affirmed that Bitcoin will not be an alternative to tangible currencies.
Quesdtion10: Do you think that Bitcoin will still alive in the future?
It all depends on the efforts that would be engaged that it is improved ad accepted towards becoming a common global digital currency. However, it could become obsolete if no attention and investment is made on it.
From the above graph, it is clear that majority of the respondents did not perceive Bitcoin to be alive in the future.
This study is an exploratory research via questionnaire design built on a purposive sampling approach which splits the tester into dual clusters of society – business or even corporate defendants and distinct respondents. In regard to the acuity of Bitcoin, the tester distributed individually into persons who are anti-Bitcoin and those that are pro-Bitcoin, those who are anti-Bitcoin, who are uninformed of it and those that are neutral about Bitcoin respectively (Singhal & Rafiuddin 2014). The tester has been studied via a comprehensive questionnaire that evaluates the rudimentary cognizance of Bitcoin and the queries are intended to stress on the branded variables. The medium of the investigation is Electronic-Mail and telephonic deliberations or individual one-to-one gatherings to amass information. This method of contact correspondingly lessens the general budget of the study and maintains within the time confines. The previous tool has been selected for operative data gathering and its scrutiny (Ølnes 2016). The study technique has been applied to evaluate the cognizance of digital moneys, principally Bitcoin in Dubai, specialists’ views in monetary as well as fiscal domains on the effect of Bitcoin on the global thrift in broad-spectrum and as regards to Dubai, the acquiescence of Bitcoin with the ideal Islamic Banking resolutions in Dubai, besides estimating their reactions to the four capriciousness of the Bitcoin network, for instance, accessibility, acceptance , security, and regulations (Ciaian & Rajcaniova 2016). This data and analysis of it are vital for a wide-ranging comprehension of the market necessities in Dubai and globally and Bitcoin’s agreement with it.
The tester dimension is 70 and has been separated correspondingly into the above-mentioned two clusters (Ciaian et al. 2016). The tester pool comprises of economic as well as financial professionals, cosmopolitan devotees of Bitcoin spectacle from all countries on the globe, directors of fiscal corporations in Dubai (Davis 2011). Accompanied by this pool, certain businesses of Dubai that have previously embraced Bitcoin performs by accommodating Bitcoins as a form of money are similarly measured and evaluated grounded on their involvement and finding. In the initial cluster of business users, “fiscal & monetary professionals, top-level supervisors and directors of businesses like Al Islami Foods, Noor Bank, Citibank, ABB, Scientechnic, Dubai Investment, and Emirates Business Management amid other transnational firms were involved” (Singhal & Rafiuddin 2014). This group of defendants unswervingly affects the guideline and approval of Bitcoin (Singhal & Rafiuddin 2014). In consort with this puddle certain trades of Dubai, for example, First Mobile Wallet LLC that have by this time embraced Bitcoin performs by approving Bitcoins as a method of coinage are equally plotted and gauged centered on their practice and decision.
The queries are expressed in a rational headway beginning with straightforward queries to determine the cognizance of the tester on the subject of Bitcoin since one of the facets of this study is to evaluate what specialists comprehend and identify Bitcoin to be (Ølnes 2016). If the tester has a rudimentary comprehension of what the expertise is and an elementary understanding of digital moneys, then the queries development to further multifaceted matters and kindle course of thinking. The survey is allocated into two segments (Ciaian & Rajcaniova 2016). Section A tries to understand the respondent’s awareness of Bitcoin. For section B, it consists of questions regarding the use and effect of merging Bitcoin with Islamic Banking besides Bitcoin’s height of acquiescence with the Shari’ah doctrines. The next cluster of respondents is persons’ users besides customers who create the market sordid for Bitcoin (Singhal & Rafiuddin 2014). They are not anticipated to have any preceding comprehension of Bitcoin or its domain. The queries have been set in a rational evolution commencing from modest interrogations that try to comprehend first, the range that Bitcoin enjoys in regard to the online dealings. Secondly, it is the cognizance of the alleged technology.
It is apparent that section A annals the respondents’ period taken on the Internet, its drive, and their incidence of applying online business services. For segment B, it tries to comprehend the respondent’s phase of cognizance of Bitcoin (Hurlburt & Bojanova 2014). Similarly, the surveys have been dispersed via LinkedIn, E-mail, and Facebook.
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