project proposals

How Bitcoin is Feasible to the Currency Standards?

Majed Alqatari

Jack Kennedy

JTC300-Project Proposal

June 21st, 2019

Introduction:

In 2010, Bitcoin was introduced as a digital currency worldwide. Since then, the price of this remarkable cryptocurrency has advanced exceptionally. In the initial phases, Bitcoin’s value was just 1 dime. In the current times, the estimated value of Bitcoin has raised to $9,000. Due to this increase in Bitcoin’s value, its market has attracted many investors. However, the question is whether Bitcoin is feasible enough to be regarded as a standard currency or not.

When it comes to the digital currency, its decentralized nature is the major factor that is questioned by the opponents of its utilization. In simple words, there is no transaction control of the digital currency as no organization or database is involved. Consequently and expectedly, the financiers and the investors are engaged in the exploitation of the digital currency owing to its decentralization. This manipulation is utilized for conducting illegitimate and criminal activities such as the trade of weapons, drugs, and trafficking. In addition, many assets are lost and compromised due to the numerous technical issues attributed to Bitcoin. Furthermore, the consistent fluctuation in the Bitcoin price results in grave economic instability. Therefore, it is imperative to conduct a thorough examination of the probability of the resolution of issues concerned with Bitcoin. This assessment is not only essential for the official introduction and implementation of Bitcoin but also for a more productive corporate environment. Many governments throughout the world have made attempts in establishing associations that could efficiently control, supervise, and record the cyber transactions. Similarly, IT specialists are endeavoring to create user-friendly and practical software to save Bitcoin from hacking and virus attacks. In this manner, it would be possible for the governments to safeguard their citizens from criminal offenses threatening the safety of the people. Moreover, such measures would facilitate the creation of a safer business environment for entrepreneurs.

Procedure:

Considering the vitality of this topic, an assortment of resources is available with many perspectives. For data collection, I am going to begin my research by utilizing the extensive database of the CSU Library as it contains reliable and authentic resources. In addition, the search engine allows the users to filter a number of features thereby making the research process extremely convenient. It is done by enabling users to select particular resources by looking for keywords, dates, topics, and type of paper/resources required. The next step would be to conduct a comprehensive investigation of Internet resources. However, it would be ensured that Internet sources are valid and credible. As far as the criteria are concerned, I am planning to emphasize on using distinctive sources. In order to cover the safety part, I will be searching for resources that contain authentic content regarding the crimes associated with cryptocurrency. Later, real-life incidents would be discussed for making it clear to the audience that economic safety and financial matters are affected by such criminal activities. Due to the limitation of space and time, only certain technical issues including hardware/software damage, cyber-attacks, and hackings will be highlighted. To authenticate my perspective, the issues will be discussed using the expert analysis of top-notch individuals such as Bill Gates. In the same connection, authentic sources related to Economics will be used for studying the stability and highlighting the reasons fluctuations in the price of Bitcoin occurs.

For the evaluation of the Bitcoin feasibility as a standard currency, I will use the criteria including stability of the currency, safety, and the issues related to technology. When it comes to safety, I am going to mention the probable outcomes of Bitcoin expansion. In order to explain the scenario, I will be emphasizing on several principal unlawful user activities, such as drug dealings, tax evasions, and weapon trade. In addition, the effects of the mentioned crimes will be detailed to demonstrate their threatening impact on national security. An unbiased approach will be used for listing Bitcoin’s advantages and disadvantages so as to give the exact picture. A comparison of Bitcoin with other competitors will be given. On the other hand, I am going to compare Bitcoin as a currency to other international currencies, especially the American Dollar. In fact, stability of the currency will be a major comparison element. Lastly, I am going to examine the technical concerns that Bitcoin is expected to face. After that, I will analyze the potential solutions to protect the digital currency and provide a secure investment environment for all the stakeholders.

Qualifications – Sources:

Since the time I started taking the Micro- and Macro- Economics classes, it became an inspiration for me to delve into the field of cryptocurrency for further exploration. I remember a specific chapter in a book that particularly discussed the Bitcoin topic in detail. It was in 2017 that this chapter was included in the existing curriculum and made it possible for me to learn about the uniqueness of Bitcoin for the industrial and business sectors. Also, I gained awareness of the Bitcoin’s drastic impacts on the worldwide economy as well as on the political spheres. Later, I got the opportunity to apply for the Business Administration minor that included Accounting, Business Law, Finance, Marketing, and Management classes. Currently, all Business classes talk about Bitcoin as a major topic.

I also learned about the reliability of peer-reviewed resources. Presently, I have been triumphant in finding two sources that could be considered extremely critical due to their content value. Out of the two, one source has been published in the peer-reviewed journal named Harvard Journal of Law & Technology. This source mentions the various probable actions that are expected to be taken by the miners of the Bitcoin. The author also states a few actual cases related to the United States and the steps taken by the US government for handling the respective situations. The second source has been published by an IT and Safety expert, Michael Cobb, who asserts that despite of the technical threats, Bitcoin is a secure cryptocurrency. This article recommends various strategies for Bitcoin protection.