The Ethics And Impact Of Bitcoin: A Critical Essay.

Bitcoin and Real Money

1.Do you think Bitcoins are approaching being unethical monetary instruments without technically carrying a value similar to Real money?

2.Is using bitcoins unethical?

3.Do you think the bitcoin system is “evil” as Paul Krugman suggests? Is it similar to a Ponzi scheme?

4.Is Bitcoin is against the central bank or solving money issues?

Bitcoin is both a digital asset or account unit and computer protocol. It is a digital print of peer-to-peer open source print that was launched by the world developer Santoshi Nakamoto on January 3, 2009. His mysterious formula was considered by a writer as a strategy that the security and use of this technology do not depend on the reliability of the Creator. The protocol was created to read and create the open source for everyone. Crypto currency is a protocol and software based on the entire peer-to-peer transaction and minimum cost allowance worldwide. For years of reality, continuous media coverage near Bitcoin, epic drama, a roller-coaster ride, and lemon studs from major retailers are seen. Bitcoin is used by many new organisations, which is the most common form of effective currency.

1.Bitcoin is an open digital peer-to-peer currency which is not supported by other product, like silver or gold. Bitcoin is almost completely present in the online and digital world, although few bitcoins have been personally linked. The U.S. dollar, Likewise others currencies such as coin or paper currencies being issued by the national banks (Rychlewski, 2013). This means dollars are Federal Reserve Notes which are print at the U.S. Bureau of Engraving and Printing. So the dollar is called the fiat money that means the dollars originate their values from laws and regulation of the United States government. Interestingly, in the United States in the year of 2014, the United States decided that Bitcoin will be taxed as a property not a currency for the IRS or International Revenue Service. IRS defines Bitcoin as a converted currency which can be used as an exchange medium. Technically, Bitcoin refers to the network and technology associated with currency with capitalized "B" when Bitcoin refers to the actual currency with a small case "b". Bitcoin has complete disbelief in the control or authority of the underlying philosophy, essentially a completely stateless, market-based method, without interference from any region or country level bank. It is very technical. Bitcoins generated through a procedure called mining (Chen, Tang and Tang, 2013). The involvement of mining process for adding records of transactions to Bitcoin's community ledger is known as the block chain. Bitcoin nodes usage block chains to detect valid Bitcoin transactions. In this present development world, the process of mining is deliberately designed to be resource-intensive and difficult. This means the blocks daily found by miners rest relatively steady. So, basically, to make a Bitcoin "mine", a person must use a sufficient computational power to solve a difficult mathematical problem.

The Ethics of Using Bitcoin

2.Yes, it is true that Bitcoins are unethical for buying illegal products though it allows important functions in criminal operation for causing cyber crime to the country. Protecting against cyber crime became a more and more complex task. Therefore, the organization need to hire capable people, train and remuneration them (Hamburger, 2017). The organisation needs to organise a risk management security system for cybercrime and set up operation and technical environment to sustain awareness and prepare to reproach criticism and restore critical service. The primary form of organised crime where the strong, strict and top crime is identified by the communication. With the appearance of new private channels of electronic communication alternative form of criminal organisation are formed. Corporate and Bureaucratic criminal organization developed the deep division of employment with in the organisation. However, the highly dedicated units involved in the overall structure of confidential electronic communication which was rigid. It is so because the fees of internal service create money flows within the organisation. As long as the money transfer is largely based on positive non-anonymous personal relationships, the organisation remains rigid. It would be noted that the cash flow was always an important part of illegal transactions. Due to the emergence of the Bitcoin currency, the situation changes dramatically: Bitcoin uses uninformed tone by the Tor Network together, providing digital goods and criminal services, supplying and providing secretly. The flow of money has always been a dangerous part of criminal activity. Therefore, it is not a large surprise that criminals are comfortable and broadly used in the system of new payment (Bollen, 2017). This leads to the Criminal Service market - A key writer calls - "Criminal Economy.

3.Regarding Bitcoin system, peoples have the highly negative opinion. Nobel winning author Paul Krugman considered Bitcoin is an Evil in an article published in New York Times newspaper. Claiming that Bitcoin offers an essential starting point for moral evaluation only if it has obvious mistake. Bitcoin is a mass of code stored in the computer hardware. It is man operated and thus cannot work independently. It can undoubtedly be used in an immoral way, but this is the evil that it is equivalent to any other currency because it can be used as per as convenience for any kind of immoral purpose (Kaushal, 2016). Considering the fact that Bitcoin should be studied properly for further understanding. In this way, an organisation will see how Bitcoin can be used in good ways and how it stands in position in comparison to other currencies. A standout amongst the most every now and again made moral charges against Bitcoin is the obvious secrecy of those utilizing the money takes into consideration criminal action to be done openly in ways different monetary standards do not operate. However, those who use Bitcoin do not stand the level of nomenclature. In the first place, all exchanges utilizing Bitcoin are blocked by public chains the divisions in these exchanges are distinguished by their address of Bitcoin which goes about as one type of alias. Therefore, if a person can add his address, he is no longer unidentified. Linking IP addresses can be done in a variety of ways, including data analysis available through block chains and traces (Benson and Chumney, 2011). Also, if a person wants to purchase Bitcoin using other currency, or they could use a bitcoin exchange to convert bitcoin to another currency which requires the need for its bank account and the organic traditional forms of personal documentation used for authentication. This implies that the use of Bitcoin is not anonymous.

4.The Bitcoin practice could reduce the asset transfer by transforming the service which was used for long term. Presently, to transfer large assets requires time and resource which is a very complex matter. To reduce this complex method, Bitcoin's public ledger can replace this. Bitcoin is able to represent real world assets. Companies like Colored coin are already working out ways for using Bitcoin as a physical property (Iwamura et al., 2016). A part of a Bitcoin would identify publicly that who owns that particular property and its history by including records, which enable one to verify all records over the block chain and hand over the title on-site.  Likewise, the financial instrument and real estate can compete over block chain rules which will reduce friction and create efficiencies and by allowing individuals to transfer property directly without using help from a lawyer, broker or other to end the transfer. Block chain can also transform identity management. Different types of Identity including driving license and passport which are still using paper based methods. These valuable documents are often forged and stolen. That's why a cryptographic network based block chain can be used to verify individual’s identity by monitoring movement across the border. It possible by presenting a Bitcoin key when someone at a checkpoint or a border crossing was instead scanning paper passport or showing (Kaplanov, 2017). This also helps a government officer to verify the key and registering his or her entry into the block chain. It can also be used in different types of identity management like social security numbers and tax identification. Till date, the difference between block chain and Bitcoin is still unknown among people around the world. Some of these clients are going to use this technology to the specific point to cut costs or to add extra revenue streams.

Conclusion

There is a comprehensive agreement that TOR-Network Coordination with Bombing Bitcoin transactions that supports the new worldwide crime economy. The organisation wants the Tor Network to protect our democracy because Tor's privacy contributes to maintaining free political opinion of the property. Also, the option to ban Bitcoin and to control the flow of illegal money seems promising. It will hamper the important tasks of organisational crime very effectively.  In addition to environmental impact, some Bitcoin transactions are anonymous and non-traceable. It is fairly easy to identify this huge power waste which regulates some of the mining firms governing the entire system. Next, to it, Bitcoin will seriously affect the global economy crime, which trusts on non-traceable crypto coins. If the organisation disrupts non-transferable money flow, there will be anonymity exchange of criminal services. Only the proposed conclusion cannot overcome if all concerned countries do not participate in the bam of Bitcoin. For this reason, Bitcoin should consider additional measures like banning currency exchanges

References

Benson, S. and Chumney, W. (2011). The Rise and Fall of a Ponzi Scheme: The Ideal Illustration of the Law and Ethics of the Federal Bankruptcy Code. Journal of Legal Studies Education, 28(2), pp.273-330.

Bollen, R. (2017). The Legal Status of Online Currencies Is Bitcoins the Future?. SSRN Electronic Journal.

Chen, J., Tang, T. and Tang, N. (2013). Temptation, Monetary Intelligence (Love of Money), and Environmental Context on Unethical Intentions and Cheating. Journal of Business Ethics, 123(2), pp.197-219.

Hamburger, J. (2017). State Money Transmission Laws vs. Bitcoins: Protecting Consumers or Hindering Innovation?. SSRN Electronic Journal.

Iwamura, M., Kitamura, Y., Matsumoto, T. and Saito, K. (2016). Can We Stabilize the Price of a Cryptocurrency?: Understanding the Design of Bitcoin and Its Potential to Compete with Central Bank Money. SSRN Electronic Journal.

Kaplanov, N. (2017). Nerdy Money: Bitcoin, the Private Digital Currency, and the Case Against Its Regulation. SSRN Electronic Journal.

Kaushal, R. (2016). Bitcoin: First Decentralized Payment System. International Journal Of Engineering And Computer Science.

Rychlewski, L. (2013). Waiting Bitcoins. BioInfoBank Library Acta, (1), p.3047.