The world of technology, financial markets, and commerce today have a new focus of attention: virtual currencies and, especially, one of the most talked-about, bitcoin.
The issue is a planetary concern. While some see it as a great innovation and economic revolution, others see it as a threat. One thing is for sure, Bitcoin’s involvement as one of the most popular trading commodities cannot be denied. One proof of this is the emergence of various trading robots such as the Bitcoin Up trading robot.
China, Japan, Russia, the United States, and all of Europe is talking about the issue. In early 2017, the Chinese Central Bank announced investigations for those who trade bitcoin, warning that it is not a legal tender.
In the United States, the securities market authorities had to decide whether to accept the registration of Exchange Traded Funds (ETFs) in virtual currency to be traded in the market of that country. The answer was negative. Although the decision continues to generate legal debate.
Bitcoin has come under increasing scrutiny in some countries because it has been used to launder illegally acquired profits. In the first quarter of this year, the G-8 Financial Action Task Force Against Money Laundering warned that bitcoins are part of the methods used by terrorist organizations and others outside the law in their financing schemes.
Now it is very easy to buy and sell bitcoin because many trusted, as well as certified companies have introduced applications that work in a robotic style and provides result accurately from all sides and corners, on time.
In the Colombian case, virtual currencies have also generated controversy and, in some cases, bad news. According to Jhonatan Higuera, coordinator of the Financial Market Analysis Unit of the Faculty of Economic Sciences of the National University, the first approach of people with the issues of virtual currencies in the country has been, to a large extent, the pyramid scheme or fraudulent scandals.
But bitcoin is not itself a pyramid scheme or a fraud system. It is an application and a technology that facilitates transactions between people, thanks to a protocol known as a blockchain. The objective of Bitcoin is to make transactions without intermediaries. It is working with a secure hosting system so that you never lose your data as well as to protect you from any theft attack.
It is very easy to use bitcoin in buying selling applications with no extraordinary learning required to handle the entire process. Moreover, that has pre-defined features to forecast the best profit deal while using the robotic application of bitcoin-related software that provides you the best possible profit deal.
Between the two aspects
It is necessary to bring some clarity to one of the most in-depth debates for the future of financial markets, central banking, commerce in general, and investment. To begin with, it is necessary to distinguish between two things: one, bitcoin as an innovation for the transfer of value and, another, the fraudulent ways of using it.
Let’s go with the first aspect: the innovation generated by virtual currencies. In 2009, when Satoshi Nakamoto released bitcoin and the computing protocol that supports it to the world, he was looking for answers to a specific issue.
The financial crisis, which caused a profound breakdown in confidence in the global financial system, had raised questions about how to prevent economies from remaining so vulnerable due to poor banking practices. So this style of investing easier and well in shape because no nay central bank involved bitcoin transactions so easy to buy and sell in related markets.
Nakamoto had a question in mind that he wanted to solve via informatics and computing: how to transfer value between two agents without the need for an intermediary? The answer to this question implies a depth load for the financial system and the fiat money regime that implies, above all things, the need for someone to act as the guarantor of the contents of any transaction: that is, a Central Bank and a financial intermediary.
According to Nakamoto himself, as he wrote in the document where he explains the design of his computer model, the main obstacle that had to be solved, from a technical point of view, was double-spending: it referred to the error in a scheme of digital payment that led to a single data package being duplicated, basically due to some negligence in programming or due to the intervention of another who falsified it in bad faith.
This risk means that the same group of data can be used in two different transactions, ruining trust in the system. From these types of errors, for example, not even physical money is saved, since as is known, banknotes can be forged, generating a risk of fraud in operations.
All your transaction detail or documents fully protected with proper hidden style so no chance of stealing. You can personally approach all your detail in this application when you sell and buy bitcoins.
If the double-spending was not resolved, any virtual payment system would be unfeasible and an intermediary would always be needed to guarantee the quality of the operations. Here the trusted application who works with a scanning robotic system provides you real-time protection and a list of best investment deals or time in bitcoin. So must try this application makes your buying selling process easy as well as profitable from all sides and corners on time.
Nakamoto designed this system under the principles of blockchain, which makes it possible to transfer data safely and without the risk of duplication. The principle is basic: to prevent duplication, each new movement must incorporate the general tracking of operations. This means that all the information from previous operations is incorporated into the system, plus those derived from new transactions.
Besides, the protocol must use a P2P technology; that is, a way of computing that does not need central servers or clients but is done directly between users.
In this way, the technical answer had been reached: decentralize the transfer of information, with high levels of security.
And what about value?
But that was not enough, since the main problem remained to be solved: the historical and cultural one; that is, how a specific asset ends up being used to transfer value. That is perhaps the biggest surprise of this whole bitcoin phenomenon.
Nowadays the investment in this currency shape spread day by day. Many things intergraded with this who makes this currency provide know well internationally.
Bitcoin is the result of increasing the computing power of the blockchain network. Every time someone manages to incorporate a new block into the network because they have managed to find an algorithm that allows it, they become a creditor of a new bitcoin package, which is the way to represent the utility of the system.
The assumption is that the more complex the blockchain, the more difficult it will be to hack. Thus, the programmers who began to make the algorithm with which the system operates more complex, increased the computing capacity of the network, incorporating new blocks and, consequently, had to be paid. Bitcoin was the way to recognize their effort.
Disclaimer. The views and opinions expressed here are those of the authors. They do not purport to reflect the opinions or views of IdeasPlusBusiness.com. Any content provided by our bloggers or authors is of their opinion and is not intended to malign any organization, company, individual, or anyone or anything.
For questions, inquiries and advert placements on the blog, please send an email to the Editor at ideasplusbusiness[at]gmail[dot]com. You can also follow IdeasPlusBusiness.com on Twitter here and like our page on Facebook here. This website contains affiliate links to some products and services. We may receive a commission for purchases made through these links at no extra cost to you.
The Ideas Plus Business Editorial team is responsible for this post. For collaborations and partnership requests, kindly send an email to the Editorial Team at ideasplusbusiness[at]gmail[dot]com for the terms and conditions. You can also follow IdeasPlusBusiness.com on Twitter here and like our page on Facebook here.