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The Impact of Bitcoin in Financial Markets

Autor:   •  October 10, 2017  •  Research Paper  •  1,482 Words (6 Pages)  •  904 Views

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The Impact of Bitcoin in Financial Markets

Bitcoin was invented in 2008 by a Japanese Satoshi Nakamoto, which was originally intended to be an attempt to encrypt the base money. In fact, similar circumstances have been in a variety of forms exist for nearly 50 years, but did not get great success did not disappear. Bitcoin is a hidden structure with a deep structure, widely used in global trading, in order to achieve its escape speed.

Until now, Bitcoin has been recognized in some countries legitimacy, but in some countries is banned bit by bit currency transactions, which in 2017 this year in mainland China has been banned bit currency transactions. Bitcoin from the advent of the present, its value has been from the initial one less than $ 3,000 rose to about $ 3,000. Why is the value of Bitcoin growing so fast that it is inseparable from its far-reaching impact on global financial markets.

The Dark Internet:

Bitcoin is accompanied by a huge risk on the Internet, where the transaction of Bitcoin provides a channel for some illegal transactions, such as blacks,

Black network is through the ordinary search engine can not access the site. We get the surface of the network, not even half of the existing Internet. Black network can only be through the Tor browser and other special software to access, so you can achieve the purpose of anonymous search for the Internet.

In the dark network, you can find the trading platform for assassins, weapons and more illegal things. By using encrypted money like Bitcoin, people can engage in illegal transactions without providing any information about themselves. An encrypted currency like Bitcoin is a way of giving the world the power of such transactions, which eventually leads to an increase in cybercrime.

On the other hand, the price of Bitcoin has generally risen a lot, but there is also a falling situation, which may continue. Due to the high and low points, Bitcoin offers a strong speculation. Like trading stocks, Bitcoin's trading volume is so great that people see invisible uptrends, and the value of Bitcoin may grow further.

The reason for this is the increase in the cost of investing in the stock market. Apple or Facebook's share can cost about $ 150, while Bitcoin can be purchased as low as one-tenth of the price. This has become a relatively easy target of speculation

The impact of Bitcoin on financial markets is also reflected in banks and governments:

All previous currency transactions were made through banks. Now, with the evolution of Bitcoin, the situation has changed. The power of money trading to give the government and the central bank is changing to the masses. For safety reasons, usually the central bank and financial institutions to maintain the People's Exchange transaction records. However, by using Bitcoin transactions, this creates a new autonomous organization that can provide transactions. Ultimately, if large-scale adoption, across the bank and government intervention, therefore, Bitcoin may be to some extent will lead to the politicization of money.

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