Bitcoin is the perfect currency and payment system for our digital age.It is decentralized, open source, and highly secure, allowing you to shop online or send money around the world in just seconds— at a fraction of the cost of other payment systems.With Bitcoin, you don’t need a bank account, credit card or special technical knowledge.You can use it to spend, send or save, converting it easily to paper currency whenever you choose.Why Bitcoin Has Value Bitcoin as an Investment How Does It Work?The creation of Bitcoin required a great deal of sophisticated computer engineering, but people can use it easily and conveniently with no technical skill.It works on a decentralized ledger known as a “blockchain,” which tracks every transaction in a public, verifiable manner through a computer process called “mining.” Users can buy bitcoins from multiple sources and store them in a digital “wallet,” which uses sophisticated encryption to store them securely.

What is Bitcoin Mining Bitcoin - The Regulators are Here Everything About Bitcoin (Video) How Secure Is It?Bitcoin is designed to be both the most secure and the most open currency in history.Secure because its complex encryption makes it virtually impossible to be hacked if stored properly, and open because all transactions are noted on a public ledger (without revealing personal identities).In this way, fraud is minimized, privacy assured, and the network flourishes to the benefit of all users.Getting Ready for the Institutional Investor Bitcoin Security: A Best Practices Primer Maximizing Bitcoin Security Who Benefits?Since no government or other central authority operates Bitcoin, its benefits flow only to the users.Whether you’re a consumer buying items with Bitcoin or a merchant accepting it as payment for goods or services, Bitcoin provides an easy, low-cost way to conduct business.All parties benefit from reduced fees, and for people around the world with no banking or credit card relationships, Bitcoin can serve as a highly useful currency and payment system.

Why You Should Accept Bitcoin A Bitcoin Shopping Guide Merchant Adoption: Full Speed Ahead How to Get Started?Entering the world of Bitcoin is getting easier all the time.Many companies now offer services that in a few minutes can get you signed up for your own wallet, ready to buy your first bitcoin and then start shopping at the hundreds of thousands of businesses now accepting it as currency.bitcoin echeckThe same is true if you own a business and want to accept Bitcoin.bitcoin emissãoSign up today using a payment processor and remove all the risk and volatility!ezanga bitcoinGuide to Buying Bitcoin Getting Started for Merchants A Guide to Bitcoin TermsStarting from a business plan of a renowned Multi-Level Marketing company, even without having any direct connection with it, Telexbit comes in 2016 with the concept of giving thousands of customers the opportunity to save on their calls National and international VoIP services.

Headquartered in Cheyenne - WY and in Nassau - Bahamas, Telexbit has come up with a unique concept of managing Network Marketing through the sale of products.Skip to content Skip to navigation Blockchain Protocol Analysis and Security Engineering 2017Main navigation | Main content College of Science and Engineering CSE Home CSE Directory Give to CSE Student Dashboard Software Engineering CenterBefore proceeding further, make sure you’ve read earlier two parts in this series:From those two articles, we concluded that both Money system (and Bitcoin system) are superior to Barter system.So now Barter system is out of equation.From the discussion so far, we’ve learned that Money was invented to overcome the limitations of barter system.Overall, money serves following functions:Let’s check these functions and how Bitcoin fares on these parameters.If a given thing cannot perform the primary functions, we cannot call it money.If something wants to call itself “money” then it must ALWAYS perform following two functions, irrespective of time and place.ConditionFiat Currency (Rs.

$)BitcoinReadily acceptable.yes because it is issued by the government (or its Central  Bank)Not yet.Since Bitcoin is not issued by government, most people don’t trust it.You already know how Chinese RBI (People’s bank of China) has issued warning against use of Bitcoins.Similarly, a day before Christmas, even Indian RBI issued warning against Bitcoin use (click me to read the press statement).Durabilityyes (unless someone burns or tears it apart)Even more durable than paper currency.(Unless someone shuts down the entire internet.)CognizableYes, even illiterate people can recognize and differentiate between currency notes based on their dimension, color and images.Less.Because illiterate cannot recognize it.Even a literate person will require computer, special software and internet to recognize & use Bitcoin.Easily DivisibleYesEven more.FungibleYesYes, for now.Hard to counterfeit?Hard but not impossible.Bitcoins are created by crypto-currency mathematical algorithm= Harder to counterfeit, but not impossible once the Quantam Computers are invented.Easy to carry / PortableyesAnswer is both yes and no.Yes because Bitcoin is a digital currency, can be used via mobile, tablet, laptop etc. as long as you know the password (private key.)No, because Bitcoin system cannot work without electricity, internet connection.

It’ll not work if you forget the password (private key).As you can see, Bitcoin doesn’t fully meet the all the conditions.Therefore,Money’s function as “a measure/unit of value”, helps in following ways:These are functions/utilities derived from the primary functions of money viz.(1) Medium of exchange (2) Measure of Value.Similar to email exchange, but with slight modification.so, in theory, yes it is possible to transfer value using Bitcoins.RTGS: Real Time Gross SettlementNEFT: National Electronic Fund TransferBitcoinProcessing fees between 25-55 rupees.(includes SERVICE TAX)Processing fees: 2.50-25 rupees (includes SERVICE TAX)No such processing fees or service tax.*Money transferred instantly.Just like email from one account to another.Net Transfers at interval of “1 hour” cycles.Meaning, if you send money @9.15AM then it’ll reflect in recipients account @ next interval i.e.@10AM.Instant transfer like email.but ‘double spend verification’ can take upto 10 minutes.Weekdays: 9 to 4:30PMSaturday: 9 to 1:30PM**Weekdays: 8AM to 6:30PMSaturday: 8AM to 12:30PMRound the clock, 24/7.

also works on holidays.Centralized monitoring by RBIIt’s a decentralized system.You need recipients (1) Bank account number and (2) Bank Branch code (IFSC).**Only need the “public address” of recipient’s digital wallet.Both sender and receiver must have bank account.= must meet “KYC norms”Anyone can open a digital wallet account.You don’t even need an email address.Even a Robot / AI can open.Ceilings on Money transfer:SBI Retail Banking: NEFT Rs.0 to 2 lakhs; RTGS: 2 lakh to 5 lakh.Higher limits for corporate banking.No such ceilings.*this is one of the reasons why Banks hate Bitcoins because they can’t earn commission on money transfer- like in traditional netbanking and credit card.** IFSC or Indian Financial System Code is an alpha-numeric code that uniquely identifies a bank-branch participating in the NEFT system.What about Bitcoins?Yes in theory, Bitcoin can serve as a standard of deferred payments, as we saw in Part II.But at the moment it is full of problems because Bitcoin is not fully serving the primary functions viz.

(Medium Exchange + Measure of Value)What about Bitcoins?Same answer as earlier.Possible in theory, but difficult at the moment.(because Bitcoin is not fully serving the two primary functions of money).What about Bitcoins?(because Bitcoin is not fully serving the two primary functions of money).Money system solves this problem:What about Bitcoins?(because Bitcoin is not fully serving the two primary functions of money).Money as a tool of Social empowermentOther functions that we already saw:So far we only learned the positive things about money.Now let’s check some negative aspects:in a separate article later, we’ll see issue of inflation/deflation with respect to money supply in Fiat currency vs Bitcoin.Otherwise the current article will become too long.So, let’s move on to next limitation of money:For money, real value and face value is not always the same.Money illusion comes when people start valuing their wealth in terms of ‘face value’ of money rather than on ‘real value’ of money.

For example:Chocolate business and Price stickness:Airline industry and Price stickness:Ok but why is it bad?Recall There are two ways to raise capital: Debt vs Equity.Case #1:  Imagine an Overcapitalized Company setup entirely on equity (shares).But and on each of these shares, company has to pay dividend.As a resultWhat’s the solution: company should buyback some of the shares from shareholders.Case #2:  Imagine an Overcapitalized company setup entirely through debt (loans/bonds).But on such debt, Company has to pay interest regularly, as a result:What about Bitcoins?Well companies in bitcoin system can also suffer from overcapitalization, if idiots or crooks are running the company.Assertion reasoning instructions: Each of the following questions contain a set of Assertion (A) and Reasoning (R) statements.Use appropriate Answer codes from following:Q13.What are the secondary functions of money?Q14.What do you understand by the term “Money Illusion”?Q15.How is RTGS similar to Bitcoin system?Q16.