In general, this paper is going to consist of an explanation of Bitcoins and the Blockchain-system, followed by the results of the question if Bitcoins could impact the future of online commerce. Additionally, this paper will exhibit the risks of investing or working in this decentralized trading system.To show the procedure of purchasing Bitcoins or other cryptocurrencies, I am going to conduct a self-experiment and procure a cryptocurrency and document the process of doing so.
Cryptocurrencies have been causing major public attention for the last few years. Especially the most prominent one, Bitcoins. In between all this internet activity people seem to overlook the real meaning of Bitcoins, how they work and how they could be integrated in the economic world as it is right now. The goal of this pre-scientific paper is to explain the function of Bitcoins, reveal it ́s risks and to elucidate the possibility of Bitcoins making an impact on the future of online commerce, by detailed literature and internet research.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Explanation of Bitcoins
- Bitcoins and their history
- Blockchain system
- How to buy Bitcoins
- Current legal status of Bitcoins and other cryptocurrencies
- Australia
- United States of America
- Europe and United Kingdom
- Future of Bitcoins
- Investors
- Risks behind Bitcoins
- Hackers
- Unregulated system
- Bitcoins and illegal transactions
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper aims to explain the functioning of Bitcoins, explore its risks, and examine the potential impact of Bitcoins on the future of online commerce. This will be achieved through detailed literature and internet research, as well as a self-experiment to document the process of purchasing a cryptocurrency.
- Understanding the functionality of Bitcoins and the Blockchain system
- Exploring the potential impact of Bitcoins on the future of online commerce
- Analyzing the risks associated with investing or working in the decentralized trading system
- Examining the legal status of Bitcoins and other cryptocurrencies globally
- Investigating the potential for Bitcoins to be used in illegal transactions.
Zusammenfassung der Kapitel (Chapter Summaries)
- Chapter 1 provides an introduction to Bitcoins and the Blockchain technology, outlining their history and explaining the process of buying Bitcoins. It further discusses the current legal status of Bitcoins in key regions like Australia, the USA, and Europe.
- Chapter 2 focuses on the role of investors in the cryptocurrency market and explores the potential impact of Bitcoins on online commerce, both currently and in the future.
- Chapter 3 highlights the risks associated with owning, buying, or selling Bitcoins. It addresses the implications of Bitcoins being an unregulated currency and discusses the potential for illegal transactions using Bitcoins.
Schlüsselwörter (Keywords)
This paper focuses on the concepts of Bitcoin, Blockchain technology, online commerce, cryptocurrency, decentralized trading system, legal status, risks, and potential for illegal transactions. It also delves into the impact of investors on the cryptocurrency market.
Frequently Asked Questions
What is Bitcoin and how does it work?
Bitcoin is a decentralized cryptocurrency that operates on a Blockchain system, which is a public, digital ledger that records all transactions without a central bank.
What are the risks of investing in Bitcoins?
Risks include high market volatility, the potential for hacking, lack of government regulation, and its use in illegal transactions.
How can Bitcoins impact online commerce?
Bitcoins could revolutionize online commerce by providing faster, lower-fee international transactions and reducing the reliance on traditional payment processors.
Is Bitcoin legal in the United States and Europe?
Bitcoin's legal status varies, but it is generally recognized as a taxable asset or medium of exchange in the US and EU, though specific regulations are still evolving.
What is the Blockchain system?
The Blockchain is the underlying technology of Bitcoin. It is a decentralized network that ensures transparency and security by validating transactions through cryptography.
- Quote paper
- Christopher Schulz (Author), 2019, Bitcoin. What is its Impact on the Future of Online Commerce?, Munich, GRIN Verlag, https://www.grin.com/document/984207
