Bitcoin is both a cryptocurrency ( A digital asset designed to work as a medium of exchange) and an electronic payment system. System is peer to peer, no intermediary is there and transactions takes place between users directly.
Bitcoins can be exchanged for other currencies and products also. Many merchants and traders across the world have also start accepting bitcoins as payment.
Then the main question is why government and regulator warning against its use. The main reasons are :
1. There is no single administrator and it works without a Central repository. ( Yes NO BANKS or REGULATORY BODIES ARE THEIR TO CONTROL IT)
2. Use of Bitcoins by criminal has attracted the attention of financial regulators. Even European Banking authority have warned that bitcoins users are not protected by refunds or charge backs.
3. Since the transfers of bitcoins are attached with some code which is again decoded by miners (independent individuals), its liquidity depends upon their availability.
4. Its conversion rate fluctuates heavily (Since no body controls it), for example in India exchange rates are controlled by RBI, similarly SEBI control movement in the prices of shares, etc, but in case of Bitcoins there are no such controls so its value can be 600$ sometimes and sometimes even 100.
Source: Wikipedia.
its value have increased multifold times since this article was posted
ReplyDeleteI was looking through some of your blog posts on this site and I think this site is real instructive! Continue posting .
ReplyDeleteVery interesting ,somewhat intrigued to browse ,but too worried of being hacked ,or being put on a no fly list ,worst ,being on the watch list,,,,Thx ,,Very informative and so interesting ,most likely ,read more on this dark topic.
ReplyDeleteJoseph Donahue
Some of these just link to nonsensical conversations in Reddit!? Some are fucked up. But that torproject browser is bad news, surely it's just encouraging paedos and sociopaths.
ReplyDeleteCrazyAsk
I thought this was interesting. At first I thought it was about something like witchcraft, etc. I would like to find out more about it. I wonder why it is not accessed on the regular web.
ReplyDeleteKelly Hubbard
The name ""darknet"" is apropos. It just goes to show that people are not always ""good."" There's a whole lot of weirdness out there. That being said, I am glad that some people still hold themselves to a higher standard--but I also tend to think that this standard is a learned behavior, and not necessarily a given. At any rate, humans are lead astray rather easily...Your article is very compelling and gives one plenty of food for thought. Up, useful, interesting.
ReplyDeleteHarold Burton