Essays on Bitins - Bubble or Bn Literature review

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The paper “ Bitсоins - Bubble or Bооn” is an informative example of a literature review on finance & accounting. Economic bubble and boon are common to all currencies and other financial instruments world over. In many instances, after the economic bubble, a bubble burst is experienced. Bursts always have a negative effect on the economy and it takes time before recovery. A bubble period witnesses an increase in speculation. About Bitcoins currencyThe current wave in the financial world is a currency called Bitcoins. Bitcoins bubble has swept all nations across the Globe.

Bitcoins are a virtual currency and involve no exchange banks. Transactions are carried out online through computer networks. Bitcoins currency was launched in 2008 the year in which the financial crisis was sweeping across major countries. The currency gained prominence from 2012. A paper on the same has already been published by Satoshi Nakamoto. The currency utilizes what is known as digital tokens and transactions are cryptographically verified. Transactions can be carried out anonymously without the involvement of third parties. Instead, public and private keys are used by either party to transact.

The networked system uses free web-based open-source software. Bitcoins wallet software makes it possible to transact over the network. To prevent Bitcoins from being spent twice, transactions are always broadcast over the network. Mainstream entities have started accepting the currency as a transactional tool. A number of organizations in countries like the US, Canada, and China accept Bitcoins in financial transactions. In Vancouver Canada, Bitcoins ATMs were introduced in 2013. The surge in the increase of Bitcoins usage has seen several Bitcoins bubbles and bubble busts (Forbes, 2013). Bitcoins prices changed drastically to reach considerably below $70 in July 2013 and then rising again to hit $600 in November.

Although Bitcoins is used as a currency, its constant variations in value make it an unreliable currency. As a result, it’ s predominantly used for speculative purposes rather than as a medium of exchange (Guardian, 2013).

References

Forbes, T. 2013. Bitcoins May Be Following This Classic Bubble Stages Chart. Retrieved 2014-01-07.

Guardian, W. 2014. Bitcoins: more than just the currency of digital vice. Archived from the original on 29 April 2013. Retrieved 20 April 2013.

Lee, Timothy B. 2013. "Bitcoins Doesn't Have a Deflation Problem." Forbes. Retrieved 27 January 2014.

Main. F. 2012. European Central Bank "1" (PDF). Virtual Currency Schemes. European Central Bank. p. 5. ISBN 978-92-899-0862-7. Retrieved 5 March 2014.

Mark, W. 2013.

Ritchie S. King. 2013. "By reading this article, you're mining Bitcoins." Qz.com. Atlantic Media Co. Retrieved 17 December 2013.

Robert. M. 2014. "Bitcoins Exchange Mt. Gox Goes Offline Amid Allegations of $350 Million Hack." Wired. Retrieved 2014-02-24.

Robert. M. 2013. "Bitcoins Exchange. Wired. Retrieved 2013-06-19.

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