The paper “ Development of Different Virtual Currency Schemes like Bitcoin and Linden Dollars” is an intriguing variant of the case study on finance & accounting. The world economy is witnessing a growth in virtual money and is being continuously being used by all economies. Virtual currency is defined as a type of currency that is unregulated digital money which is controlled by the developers and is accepted among the members as a virtual currency and is used for the purpose of trading. This has led towards the development of different virtual currency schemes like Bitcoin & Linden Dollars. Bitcoin is the most successful and controversial virtual currency scheme which has been launched by the Japanese government which is similar to the scheme launched to BitTorrent and looks to work on the peer and peer network.
Bitcoin is used as a currency which can be used for all purposes and competes with other currency like Euro & US Dollar (Virtual Currency, 2012). Bitcoin looks to create a database that has all the products and services which can be brought and helps to create an opportunity through which the business is able to gain efficiency and trade with each other.
This scheme is being developed as a decentralized system that doesn’ t have any central monetary system involved in the transactions. Since, creating virtual money through which use of Bitcoin system has helped in the creation of monetary value and has aided towards the GDP of the economy it is contributing positively towards the growth and opportunity which the economy provides. Further, virtual currency has no effect from the monetary policies which will thereby ensure that the creation of monetary value for the economy is dependent on the specific activity which is undertaken rather than on the monetary policies which have been drafted (Virtual Currency, 2012).
The Bitcoin scheme will thereby help to generate revenues on a planned basis and will grow at a rate which is predictable and is shown below (Virtual Currency, 2012)The fact that the supply of money which will be created through the Bitcoin scheme won’ t be affected by the issuance of money or printing extra money from the central authorities because the scheme looks to present the predicted flow of money.
ReferencesVirtual Currency. 2012. Virtual Currency Schemes. Eurpoean Central System. Retrieved on April 27, 2013 from http://www.ecb.int/pub/pdf/other/virtualcurrencyschemes201210en.pdf