This work is about bitcoin and illegal trading as well as fluctuations and the causal effect of it. The recent emergence of new technologies in the financial sector and virtual communities lead to new types of transactions and started questioning the relevance of financial centers around the world. The main reason for the emergence of virtual currencies (cryptocurrencies) is not necessary incapability or shortcomings of traditional currencies, but rather the development of the internet and its networks. Unfortunately, cryptocurrencies raise more controversies on questions such as legal framework, financial risks or effect on the economy – this is a challenge for the financial sector and the existence of financial centers.
In the beginning, it is necessary to define Virtual Currencies. This type of currency can be defined as International Monetary Fund (IMF) in a research "Monetary and Capital Markets, Legal, and Strategy and Policy Review Departments" describes digital representations of value, issued by private developers and denominated in their own unit of account. This definition clarifies the usage of virtual currencies as it has the functionality to be transacted electronically, stored, accessed if two parties of a transaction confirm an exchange.
Virtual currencies emerged because of the creation of a blockchain or so-called distributed ledger system. This system is exceptional because of decentralization principles. The most important detail in a system is the unique ledger of transactions. Bitcoin technology allows to have a consensus between members of a network and decentralize transactions within a network.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Bitcoin and illegal trading
- Fluctuations and causal effect of it
- Bitcoin Fluctuations in the year of 2013
- Market Fluctuations in the period 2015.01-2017.01
- Conclusion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This research examines the reasons behind cryptocurrencies' fluctuations and the challenges they present to illegal trading. It analyzes the volatility of cryptocurrencies, particularly Bitcoin, and its implications for both legal and illicit transactions.
- Volatility of cryptocurrencies
- Impact of fluctuations on capital accumulation
- Use of cryptocurrencies in illegal trading
- Legal framework surrounding cryptocurrencies
- Adoption of cryptocurrencies by businesses and individuals
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: This chapter introduces the concept of virtual currencies and the rise of cryptocurrencies due to the internet and its networks. It defines cryptocurrencies and their decentralized nature, highlighting the role of blockchain technology.
- Bitcoin and illegal trading: This chapter discusses the use of Bitcoin in illegal trading activities. It examines the anonymity and ease of transactions offered by Bitcoin, attracting both legal and illicit users. The chapter also explores the growing acceptance of Bitcoin by legitimate businesses, contrasting its use in black markets like Silk Road.
- Fluctuations and causal effect of it: This chapter delves into the volatility of Bitcoin, citing its significant peaks and plunges during 2016-2017. It explores the challenges posed by these fluctuations to the use of Bitcoin as a form of capital accumulation.
- Bitcoin Fluctuations in the year of 2013: This chapter focuses on the specific fluctuations of Bitcoin during the year 2013. It analyzes the factors contributing to these fluctuations and their impact on the cryptocurrency market.
- Market Fluctuations in the period 2015.01-2017.01: This chapter analyzes the market fluctuations of cryptocurrencies during the period from January 2015 to January 2017. It identifies the factors influencing these fluctuations and their implications for the cryptocurrency ecosystem.
Schlüsselwörter (Keywords)
Cryptocurrencies, Bitcoin, Blockchain, Volatility, Illegal Trading, Decentralization, Anonymity, Legal Framework, Capital Accumulation, Market Fluctuations.
- Arbeit zitieren
- Gabriele Pauliuk (Autor:in), 2018, The Cryptocurrency Bitcoin And Causal Effects Of Market Volatility, München, GRIN Verlag, https://www.grin.com/document/584612
