Bitcoin May Continue To Survive Moving Ahead
With the fall of Chinese Yuan, the value of bitcoin would upsurge. This notion makes us visit bitcoin, to know what it is all about. According to the theory given by authors, in simple words, it is an innovation that can probably enhance human welfare. It has the potential to bring revolution in business and communications.
Let us take an example; the use of credit card payments can sometimes put businesses on chargeback fraud. Merchants may suffer from fraudulent charge backs. It is also known as friendly fraud, where consumers makes payment through their credit card and then asks for a chargeback from the issuing bank making a false claim that their product was not delivered. So merchants may lose the product as well as the payment for the product. Here comes the advantage of bitcoin, as payments cannot be reversed, this provides protection to the merchants from chargeback fraud.
According to the study done by Brito and Castillo, before bitcoin’s invention, online transactions would require a third part intermediary.
If we talk about digital money then even after sending digital money, people had a copy of that, this means that even after sending money they can spend it. This gave rise to double-spending problem. This problem can only be solved by a ledger-keeping third party. But without the help of third party, bitcoin can solve this problem through block chain, where all the transactions are registered in a publicly distributed ledger. This would ensure that money cannot be spent again. Through public key cryptography, bitcoin transactions are secured and verified. Now the transfer of ownership and all the transactions are recorded.
Some of the benefits of using Bitcoin are:
Since there is no involvement of a third party, one can reduce the cost of doing business.
It also has the potential to ameliorate the quality of life of the poorest, by providing them the access to basic financial services. Many organizations have been helping the needy people by providing them meals and toiletries through bitcoin.
It is a great platform for technical and financial innovation.