Thesis paper revision + Outline

 I have a paper that is quite messy and everywhere and I need someone to organize it and give it some structure to make it look like a paper. Adding onto that, after revising the paper I also need you to make an outline it, I will give you a template. 

 

The main point (Thesis of this paper): 

This study aims to show the dynamic of the use of Bitcoin has as a primary had crypto-currency and how it has-been penetrating the domestic and international markets since it was created in 2009 until the present. Analyzing specific advantages and disadvantages from an objective point of view that will allow to Demonstrate That virtual currency can classify as the new that currency will evolve the way we see the money.

Because of ITS growing Central Popularity Governments show some concern after Evaluating ITS potential against all electronic Transactions, which is why they have confirmed interest in formally regulating virtual currency they can receive money so profit from STI.

Money has transformed through history, we are witnessing a new change in the scheme in how capital, new technologies allow us to see things in a different way and money is no exception. The Bitcoin for many cataloged as the modern era Keywords: crypto-currency, Bitcoin, Virtual Of money wallet, mining, chain blocks, Silk Read, Forex Market encryption.

I’ve attached the original file and the Outline template. Please DO follow the guidelines for the outline. For the paper, please feel free to research and add in more information (with citation), if you do so I will give you some extra money. 

Last Name

Student Name

L.A. Teacher Name

Advisor Name

Due Date

Thesis Outline

I. Introduction

A. Hook

B. Topic

C. Thesis Statement

II. Argument 1

A. Topic sentence 1

1. Evidence 1

2. Evidence 2

3. Evidence 3

B. Topic sentence 2

1. Evidence 1
2. Evidence 2
3. Evidence 3

C. Topic sentence 3

1. Evidence 1
2. Evidence 2
3. Evidence 3

III. Argument 2

A. Topic sentence 1
1. Evidence 1
2. Evidence 2
3. Evidence 3
B. Topic sentence 2
1. Evidence 1
2. Evidence 2
3. Evidence 3
C. Topic sentence 3
1. Evidence 1
2. Evidence 2
3. Evidence 3

IV. Argument 3

A. Topic sentence 1
1. Evidence 1
2. Evidence 2
3. Evidence 3
B. Topic sentence 2
1. Evidence 1
2. Evidence 2
3. Evidence 3
C. Topic sentence 3
1. Evidence 1
2. Evidence 2
3. Evidence 3

V. Conclusion

A. Opposing viewpoints

B. Restate main ideas and thesis

C. Why should this matter (Lasting Idea)

INTRODUCTION

Cryptocurrency

is a scheme that has been taking a lot of strength since 2009 and has penetrated all spheres of world economies. For many specialists, these coins considered the new revolution of the money and for many others, something that has no relevance and they tend to disappear, which itself can secure in this essay is that we are living significant changes, where everything takes real virtual importance to the development of trade electronic.

Just seven years since its launch has become Bitcoin virtual currency more. Essential for all transactions of goods and services, or currency market network, currently moving figures close to 440 million dollars per hour (coinmarketcap). Being a decentralized currency has great advantages and its Once disadvantages that capture the eyes of governments and central banks, there is the possibility that this money may come to replace traditional currency for any virtual transaction in the exchange of goods and services refers thanks their low transaction costs.

It is a new virtual currency, which begins to circulate in 2009 created by the developer pseudonym, Satoshi Nakamoto, of course, Japanese origin. Little is known about this person or persons who developed the protocol Bitcoin, since not known with certainty source from which they come, indeed considered that it was a group of people called genii mathematicians to create a currency based on a scheme peer-to-peer electronic cash system with cryptographic security. It is indicating that operations are user to user without entities centralized controlling issue. Therefore, a limited amount of this is determined equivalent to 21 million by the year 2033 Bitcoin currency due to its high and sophisticated level mathematical. So much so that in 2015 this pseudonym “Satoshi Nakamoto” obtains ” award

innovation without limits “Granted by the average English communication” The Economist “By the invention capable of altering the traditional financial system.

Bitcoin is a decentralized currency without any global government body that regulates and control issue, have planted the following questions why use one comes intensifying each day despite the restrictions and discourage exerted by governments and central banks? Why is it essential that central states regulate the use of this type of coins? Why is Bitcoin considered source of investment? In addition to that if they are free

market forces that determine price, why other factors influence it? They are questions analyzed and to respond in the course of this trial. For the Suddenly, if you can ensure that this type of virtual currencies have enormous potential and that is for some global economies they are already studying how to create their currencies virtual to allow free virtual trade without restrictions.

Such has been the rise of this currency in many countries have implemented ATMs to convert money to local currency Bitcoin. Countries such as Germany, the United States, and Switzerland topped the list of countries that are developing policies to legalize and encourage their use, Mexico and Argentina in Latin America are leading the use of Bitcoin. In Colombia, it is a term which is just beginning to listen; few people know this currency, Bogota Medellin guide the use of Bitcoin. Financial education is vital for the Colombian population understands and adhere to new technological systems.

In Colombia the use of this coin is just beginning, it is not surprising that policies and regulations that took regarding this issue come once the major world economies they have made their measures against this new system. Both the Bank Republic to the Financial Supervision is of great interest that the Government regulates and take action against this type of transactions are on the rise penetrating all financial markets.

Indeed, this currency is here to stay in the global financial market; its use intensifies every day is a currency of high growth but cannot currently measure impact can cause the traditional economic system. If you notice that an I coin with a high potential for e-commerce because of no prerequisites for accessing it, each coin is unique and impossible to forge and most amount interchangeable with traditional currencies.

VIRTUAL COINS ARE IN ADDITION TO ELECTRONIC COMMERCE

Once past the barter system, money had an intrinsic value; this means that each coin or currency worth its weight in mind that it cast, either in gold or silver. With Over the times, the coins began to merge into other different metals thus losing its intrinsic value. Subsequently, arise in economies notes guaranteed by the gold standard one which it was in force during the nineteenth century and ends following the First World War because the different governments needed to print money to finance their wars and no they could back that money in a precious metal. Under the Bretton Woods in 1971, it was decided to adopt the dollar as an international currency with the condition that the Federal Reserve supports the gold standard, not be sustainable this pattern finally leaves to give way to fiat money that we know now where the only value is trust you have in each currency.

But like everything in life is continually evolving and changing, since 2009, it has been listening to the concept of cryptocurrency or cryptocurrency that in itself is virtual money, online money, electronic money or digital currencies. Under these terms and denominations has been giving the new concept of exchanging pay for goods and services or foreign exchange market, so electronics without intermediaries, which has led to this new scheme is transformed and significantly penetrated the global financial system.

1 The gold standard is a monetary system that sets the value of the currency regarding a certain amount of gold.

2 Bretton Woods agreements are the resolutions Monetary and Financial Conference of the United Nations where the rules for commercial and financial relations between the industrialized countries established. The World Bank and the International Monetary Fund using the dollar as an international reference created.

The most significant difference between this type of digital currency to physical currency, is that no group or individual has access to accelerate its production of money because of these crypto coins only a certain amount of units generated at a limited speed and whose value is known such and earlier, added to a very large computing power is needed to solve sophisticated mathematical algorithms to create each currency.

They cryptographic incorporate these principles crypto coins three which leads to implement a safe, anonymous and decentralized economy.

The emergence of crypto coins occurred due to the crisis experienced in 2008 and had its beginnings in the United States due to failures in economic regulation, crimes by banks, a more competitive world market, energy crisis and the possibility of a worldwide recession produced a credit, mortgage crisis and distrust all markets.

With all the problems presented above added to the stock exchanges and markets values collapsed causing the financial crisis worldwide, arise from the need to to have represented your money on something more reliable, where the term of cryptocurrency begins to take importance. From this moment the rules in markets changed forever, they start to create some electronic coins that have been gaining interest and acceptance of millions of people worldwide.

The first attempts to implement that occurred as a concept or idea was cryptocurrency Dai made by Wei in 1998 with Bmoney (Weidai, 1998), which proposes creating a new type of decentralized money where no agency exercises any control as a means of payment.

The first cryptocurrency originates under the name of Bitcoin, begins operating in 2009 by pseudonymous developer Satoshi Nakamoto, under a scheme peer-to-peer electronic cash system (Weidai, 1998), the origin of the creator or creators of this platform is unknown, in which It proposes a new kind of money that included cryptography to control its creation and all sorts of transactions, which wants to tell us that purchases made from user to user without

3 Cryptography: art or science of secrecy of messages or documents. Addresses all aspects of secure messaging, authentication, digital signatures, electronic money other applications. No centralized under a high-security protocol authority. All digital currencies after the Bitcoin had different characteristics and protocols but all similar and based on Bitcoin.

Since 2009 and with the rise living at that time the Bitcoin currency is beginning to create a countless alternatives for digital coins, it is difficult to determine the number of digital currencies that might be, it´s estimated that there are currently more than 700 cryptocurrencies are circulating in the network, however www.coinmarketcap.com website is dedicated to recording all market capitalization of such currencies in real time and has 100 digital currencies among which they are in order of importance the Bitcoin, there, Ripple, Bitcoin, and Moreno.

In Figure 1, the developments that have had since its inception in crypto coins observed 2009 with Bitcoin as from the year 2013 there is a boom that captures the looks International because of its tremendous growth and how they could affect the economies of

especially countries in international banking as nobody regulates these crypto coins to be decentralized and its use is gaining ground since many people are doing transactions with these non-traditional means of payments due to transaction costs they are much lower than those offered by the current financial system.

Figure 1 Evolution of crypto coins

Source: Miunetenetblog, 2014

Although currently it not knows which way to take the evolution of money, if you can ensure that is living a new era with many significant changes where new developments money are crypto coins, even though its use is not massive, gaining more followers every day and while there are buyers and sellers that support these coins as means of payment your increasing growth will be higher.

Are considered so crucial that currently the government of the Republic of China itself It intends to market its cryptocurrency, would be the first in the world that would regulation by a State for all types of electronic transactions, ensuring the comfort and transparency of economic operations in addition to that high would be reduced costs of issuing banknotes and controlling traditional money laundering, tax evasion tax and criminal acts that could potentially occur.

It is for this reason decided to perform this research on the importance of crypto coins in the global economy. This paper discussed in detail the cryptocurrency Bitcoin, which is the most used and is more relevant in all electronic transactions because of their trust and acceptance as payment. Will explain why it has intensified its use despite the communique issued governments to restrict their use and how they have influenced the price of this virtual currency.

WHAT it IS AND HOW IT WORKS Bitcoin?

The Bitcoin is a network that allows a new payment system with a fully digital currency.

It is a decentralized currency, which indicates that it is no centralized authority that has and exercises control over it, it is entirely public and driven by all users, not controlled by anyone. To transact Bitcoin intermediaries and costs avoided in transactions offers advantages over traditional financial systems.

You can settle goods and services over the internet and from anywhere in the world paying you bitcoin also can be exchanged for local currency or physical conduct negotiations in the currency market. It is a global currency has no political barriers, economic or Social.

Technology to create Bitcoin is too complicated; it uses large and complex algorithms mathematical for the creation of each Bitcoin making it a very safe currency. Thanks to your low cost for transactions added level of security and ease of use is generating a

revolution in the way of how business is done.

For ordinary people, the Bitcoin is something like a mobile application or desktop they provide a virtual wallet 4 It is enabling them to transact goods and services, receive and send Bitcoin between users.

The Bitcoin network shares a public accounting called “Blockchain” or chain blocks, and this contains each processed transaction accounting, keep each record distributed resistant synchronization verifies the validity of each transaction. This authentication protected for digital signatures 5, which it makes it even safer and allows users to have full control to send and receive Bitcoin addresses from your account. Anyone could process such information having specialized hardware and computer equipment so powerful that would give Bitcoin rewards for doing this work, this kind of people engaged in these operations are called in this best-known market “mining” as miners. These computers verify the transactions carried out and receive a reward in Bitcoin currently 25 Bitcoins (Geral P. Dwyer, 2014).

In the words of Marc Andreessen, founder of Netscape 6 ” a chain block is necessarily only one record, a ledger of digital events distributed or shared among many different parties. It can just be updated from the consensus of most System participants and, once entered, the information can never erase. The chain of 4 It serves low-value transactions and high volume requiring high speed and security, allows users to pay faster than cash transactions are carried out in less time.

5 The digital signature is a cryptographic mechanism that allows the recipient of a digitally signed determine that the message is authentic and has not altered by anyone message.

6 Netscape Browser that once was the most successful of all time disclosed in 1994. Its creator Marc Andreessen partner of Silicon Valley with Bill Gates and initiate Internet Explorer browser wars.

Bitcoin blocks it contains an accurate and verifiable record of all transactions that have made in his story “.

The difference between the traditional monetary system and the Bitcoin is that in the first governments just print money when they need it, while in the case of Bitcoin this is not created, you must discover, and that is why only expected to have 21 million at the end Bitcoin all mining, in other words, it will become increasingly difficult to find because of its difficulty Bitcoin mathematics, since a reasonably considerable force is needed to solve computing algorithms making it increasingly complicated. Is so arranged that no one had absolute control the cryptocurrency.

Then in Figure 1, the amount of Bitcoins that are intended to produce is shown from its creation in 2009 until 2033, the year for which is expected to be 21 million Bitcoin. A June 2016 in circulation more than 15 million Bitcoins. Once discovered all Bitcoins, it will work to make the respective trade buyers and vendors of goods and services transactions or negotiations currency.

Figure 1 Total Bitcoin in time

Source: Blockchain Portal, 2009

Currently, there is a growing number of businesses and users using Bitcoin, both in America and Europe. In these continents, there are already restaurants, buffets lawyers, services Popular internet as Namecheap, WordPress, Reddit, and Flattr who accept as payment

Bitcoins. Similarly, in the US, brands like Microsoft takes payment

applications with Bitcoin currency, this will have joined large platforms and businesses such as PayPal, Target, Amazon, Uber, OLX, Victoria’s Secret, Subway and Overstock among others.

Then, in Figure 2, a map of growth shown presents the trade and accept Bitcoin as payment.

Figure 2 trade growth that accepts Bitcoin

Source: Portal Bitcoin.org, 2015

It is estimated that worldwide there are more than 30,000 establishments that are now accepting currency as payment, the country’s leading the list in America is Canada and the United States,

Europe the nation with more businesses that accept Bitcoins as payment in Germany, and is not surprising since it is the highest power of the continent, Spain follows the statistics, and It shows a growing number. Such is the rise of the currency in some countries already have installed ATMs to withdraw local money in exchange for Bitcoin and in the case of Dubai which has 400 ATMs deployed platforms barcode reader that accredits Bitcoin. Asia leads the Bitcoin transactions, and Latin America countries such as Mexico

and Argentina have been showing an increasing behavior. In the Mexican case, the Bitcoin has been a help for Mexicans living in the United States who want to send remittances to their relatives in Mexico, thanks to its low cost (half a cent, regardless of the amount emitted) transactions are increasing, since the commissions from banks business are still very high. In the case of Argentina, as this country enters again in crisis in 2014, Argentines see in the Bitcoin an ally to have insured savings and not suffer inflationary effects, as occurred in the history of that country, where he was unable to maintain price parity management for many years. In Colombia, it is estimated that there are over 30 sites that today receive virtual currency payments,

some theaters and bars in Bogota Medellin accept as payment the Bitcoin.

Bitcoin is still a new phenomenon that continues to revolutionize the world in late 2013 total value of Bitcoin in circulation exceeded 1.5 trillion dollars every day in the world millions of dollars exchanged in Bitcoins. They were performed every 24 hours in June.

2016 225,302 Bitcoins transactions which indicate that each hour on average made near 9,400 sales representing 84,000 Bitcoin, the virtual currency moves figures close to 55 million dollars per hour depending on the coinmarketcap.com medium, which records platform 100 used crypto coins moment. Acceptance among users has been such that day after day. These figures are increasing.

To acquire Bitcoins, you can through trade in goods or services between persons that currency available, can also be purchased through some exchange Bitcoin 7 that already have this service to buy and sell Bitcoins for the Colombian case despite there are not many companies offering products or services in exchange for Bitcoin, there Some companies already took the first step to enter the new world of crypto coins.

There are some sites where you can sell and buy items paying with Bitcoin, it is the case of ” Conbitcoin.com, “And there is an exchange where you can change Colombian pesos per Bitcoin and vice versa, this is” Bitmarket.Co “This stores the Bitcoins marketers own servers to ensure that they do not defraud those who want to buy Bitcoins with Colombian pesos.

Another portal is localbitcoins.com. Also, it has a section dedicated to changing Bitcoins in Colombia. To understand a bit like these sites, work, what they do is pay platform for users who already own Bitcoins make offers to sell a certain amount 7 Companies engaged in the trading operation in Colombia through Bitmarket.co and localbitcoin.com can buy and sell Bitcoin. Determined rate of change. Exchange rates can change daily as any currency, but unlike other conventional coins, it is said that the price of this will be given only by market forces “supply and demand,” however, it is studied later that other factors influence the price of Bitcoin. In these portals always You may see the exchange rate at which these currencies are trading, once has the ideal offer the buying process starts. It should be noted that not necessarily should buy complete units of Bitcoin; you can also buy fractions thereof, i.e., you can buy Bitcoins desired value in pesos.

Once the purchase is made the Bitcoins are frozen to the buyer, the seller indicates payment methods where the buyer will deposit the money (Colombian pesos) the which may be through bank deposit, a twist, or even cash. Once the seller has his money notifies the exchange house so that they generate the delivery of Bitcoins to the personal account of the buyer, which was mentioned when negotiating the purchase on the site.

Bitcoins can also be purchased in the form of exchange between individuals who wish You do, and finally can get through mining, something that we explained above and its degree of difficulty due to the high level required for mathematical discover the Bitcoin is not so commonly found.

In Figure 3, the whole process is generated when making transactions observed with Bitcoin, whether to purchase the currency or to validate a purchase or sale of goods and services.

Figure 3 how Bitcoin works?

Source: Portal Bitcoin.org

Once the Bitcoin incorporated into our accounts to use them is easier than you could think of, all payments made with Bitcoins according to the portal “blockchain.info” are more comfortable to perform than the same purchases made by card credit and debit cards and are I received without having a merchant account, plus costs for each transaction are relatively low, and only needs to have the application installed on purse mobile phone or computer.

Bitcoin PRICES

Bitcoin price is determined by supply and demand; this indicates that when Bitcoin increased market, the price rises and when said demand falls, the low cost. To the have a limited number of Bitcoins in circulation, new Bitcoins are created to predictable and stable speed. What will determine the price is mostly the trust put in that currency’s supply and demand, as more transactions are followed Bitcoins performing at its rate will be stable, but this is where various aspects that influence mainly determine which people are affected when compromise with this coin.

In Figure 2. The Bitcoin price action shown from its inception until

2015.

Figure 2 Bitcoin prices

Source: Portal Blockchain. 2015

The graph shows the price action Bitcoin, when this starts at a price of 0.75 dollars to settle at the end of 2013 at its highest point above $ 1,200 Bitcoin, then begins a downward trend throughout 2014 and 2015 which recorded prices below $ 200. In 2014, after 5 years of the Bitcoin and when at the height of the price, a drug ring dismantled online Silk called Read 8 He is accepting Bitcoin payments and caused a significant drop in prices Bitcoin, it cost depreciation as I get to settle above $ 300, gradually has generated confidence and now the price of Bitcoin has been showing recovery and has exceeded the barrier of $ 650 to June 2016. This price volatility can be explained due to several aspects; the most important are the following three elements:

1. The media will mostly have an essential influence on currency users, since all the talk of Bitcoin may positively or negatively impact the confidence in the currency way, which can make price up or down depending on the amount of supply and demand continue willing to continue negotiations with Bitcoin. Many media

8 Read Silk (Ruta de ceda in Spanish) was a black market online computer operating with hidden services. Products sold were considered contraband, were based in the United Kingdom and the United States, offering products such as heroin, LSD, cannabis and other drugs. International and “The Washington Post”, the specializing economy “Blomberg” business web “Quartz” in the most critical moment of the price of Bitcoin, early 2014, cataloged this digital currency as ” the worst year currency “” the worst possible investment ” and as a currency ” no inherent value, hardly anyone uses it for anything other than buying drugs. “These strong accusations caused the Bitcoin prices continue their downward trend.

2. Another aspect that has determined the price through the history of Bitcoin are political taken by governments as to restrict or allow operations with this coin, as in the case of the Chinese government that initially gave a free hand to transactions with Bitcoin, which produced at the time that the price of Bitcoin They will be located at the highest rate, reaching more than USD 1,100 per Bitcoin in 2013

Later rule and put restrictions aimed at banks and their employees, which caused the price of the currency began to fall, this creates panic collective where people who hold Bitcoin want to leave them causing currency depreciation, however the media like BBC, China continues to lead Bitcoin transactions, accounts for 30% of world market Bitcoins, this represents daily operations exceeding 60 million, his Once China today accounts for 70% of global mining representing 8 million dollars a year solving complex algorithms (Danny Vincent, 2016), which It makes it the world leader in Bitcoins. Change or undermine Bitcoins is not illegal in China.

3. Finally, the security issues as many virtual platforms have presented cyber-attacks Bitcoin-based businesses, but not directly

Bitcoin platform (due to its high complexity), it is the case of two exchange houses suffer a considerable loss of Bitcoins, the first was on July 26, 2011, the third site trading Bitcoin “Bitomat” by trading volume, suffers a loss of 17,000 Bitcoins due to a technical error, shortly after the House of most important changes the moment the Japanese call “MtGox” 9 takes this lost and returns to all users lost, subsequently declared bankrupt in March 2014 due to the theft of 850,000 Bitcoins by hackers, they represented in their currently about 390 million, it generated distrust in the currency and price was affected by a downward trend, falling below USD 300 per

Bitcoin. Eventually, it confirmed that this type of computer attack was a car theft by its owner, transferring part of Bitcoin to personal accounts.

Because of these attacks on virtual platforms, they have been improving all security systems implemented more technology regarding the encryptions virtual wallets, backup, offline and printed wallets to avoid future fraud. Significantly, not only the Bitcoin currency is exposed to this type of fraud in the many people and businesses have been attacked through their credit cards, debit, traditional bank accounts and enterprise portals. Why benched Like the Bitcoin system day to day develop security methods for all its customers?

The Bitcoin is a currency that has similar behavior to other traditional coins, or even the same expression of oil, which rises and falls in prices presented external aspects.

Bitcoin IN THE WORLD

In Figure 4, it is shown in detail where Bitcoin flows freely and where restricted, prohibited and unregulated.

9 MtGox: central platform which managed 80% of global transactions in Bitcoin

Figure 4 Circulation Bitcoin in the world

Source: Portal Bitcoin charts, 2015

The use of Bitcoin is growing, a currency that has reached worldwide, although in Asia there is some restriction is where most transactions are still carried out, both Europe and North America continues growing popularity of this currency and the absence of any limitation, trade has benefited from the exchange of goods and services paid with Bitcoins. Is to note that in countries where its use is restricted, the internal policies of each nation Bitcoin allow the use of the ordinary people under own responsibility, stating that

It is an entirely volatile currency and to refrain from making use of it. It is called restricted that you are prohibited to use this money to officials of central banks and commercial.

In the case of Colombia, negotiate with Bitcoin is not illegal, although the Bank of the Republic and the Superintendence Financier have asked users to avoid transactions with this coin because there is no bank or state to back it up. In one of his statements the Bank of the Republic reports that ” The Bitcoin is not a currency in Colombia and, therefore, it does not constitute a means of legal payment tender with unlimited liberator power. Do not There is then mandatory to receive as a means of compliance with obligations “Further he adds that” the Bitcoin is not an asset that can be considered a currency because it does not have the backed by the central banks of other countries “Why such currency” It cannot be used for payment operations. ” While warns of use at any time declares Bitcoin as something illegal, the use of this currency is under the responsibility of each person.

As for the Financial Superintendence, this issues a warning that virtual currencies ” They not backed by physical assets, by a central bank, or by active or reserves that authority, so the exchange value thereof could be reduced drastically even to zero.” In the development of this work, it has been presented that Bitcoin has high volatility, and this kind of statements issued by central banks could lead to low in price, because users may be susceptible to this type of information, which generate a transactional little and hence the amount could fall. Similarly, it is not something novel that governments and central banks want to restrict the use of this virtual currency, since 2009 when they first transactions have come done the same no warnings that this has influenced the Bitcoin to follow your long way and penetrating all the markets.

Bitcoin HAS countries where any restrictions Although the Bitcoin is not yet known by many people in the world since for many is still something new that creates distrust and fear; some countries have already adopted specific measures to restrict their use. Many analysts and economists agree that this concern because the states known in advance of its enormous potential as currency and are afraid

this coin can displace national currencies, which would generate the population require third parties to manage their money. Below is a list of 10 countries is presented in where the use of Bitcoin could eventually have drawbacks when making any kind commercial transaction either because central banks or the state itself has put barriers to try to prevent their use.

• Bangladesh: The central bank ruled this country clarified that “Bitcoin is not a currency of any country, any transactions with Bitcoin or any cryptocurrency is a punishable offense.”

• China: as we have seen, China is the country that executes more transactions Bitcoin, the restriction is aimed at domestic banks and all their employees. However, operations or undermine Bitcoin is not illegal for citizens ordinary.

• Thailand: Like most countries, the Bank of Thailand in 2013 warned via press release that the Bitcoin is not considered a coin and It intended to be illegal. However, it is a country where there and there is evidence that their companies that receive and traded this currency. Thailand has regulated the granting of exchange currency Bitcoin dedicated to converting local currency.

• Vietnam: Vietnam’s central bank stated in a press release that ” the Bitcoin transactions are highly anonymous so that the Bitcoin can become a tool for crimes such as money laundering, drug trafficking, tax evasion and illegal payments.” While warning people about the risks, at any time prohibit their use, which it is a country where it is also evident that this currency is being used for virtual transactions.

• India: exchange rate policies have been implemented so that it cannot make changes

Bitcoin by Rupees. Under this scheme is not entirely illegal transactions in Bitcoin, as these policies as in China, they are focused on banks nationals.

• Russia: Although no law legitimizes has banned its use; the Russian government has prohibited from making any transactions with this currency. Russia like many economies in the world is going through a significant devaluation of its currency; This has led to its citizens to seek this alternative to having your money in a currency devaluation does not represent. It is for this reason that the Russian government does not see welcome the investment in digital currencies.

• Iceland: for this country buy or negotiate with Bitcoin would violate its laws.

• Sweden: This country has established specific regulations to negotiate and look at Bitcoin not prohibit their use, but is aware of changes that occur.

• Bolivia: Being a country of a revolutionary character, it is a country that has characteristics conservative in the use of money. Its central bank said the following way ” It is illegal to use any currency that is not issued and controlled by a government or authorized entity. “

• Ecuador: the government of this country does not want Bitcoin is a rival or competition as this state is building its system of electronic money.

This list of countries shows that the restrictions are not broad, are countries have warned his people about the volatility of the currency. However, it has demonstrated that despite the warnings or limitations, these countries are showing activity in the market using the virtual Bitcoin as a means of payment.

TRANSACTIONS BETWEEN TIME

The average time it takes a transaction with Bitcoin is 10 minutes. It’s the time Estimated to verify that people who are conducting their operations efficiently have the money and it reaches the right person; this is because the system is designed to undermine Bitcoin block at that particular time, where the transaction verified and executed.

Then in Figure 3, the behavior of the timeout occurs for confirmation from the Bitcoin platform in the period between March 2014 and January 2016, which effectively observe that 10 minutes is the maximum time waiting for users so that transactions can be formed. Only one peak appeared in March 2014 was a transaction where it takes me 12 minutes to be confirmed.

Figure 3 Waiting time for confirmation

Source: blockchain Portal, 2016

It is a platform that handles technology, users can perform all kinds of transactions with this currency and in just 10 minutes can have a maximum response to all their movements. This is a plus when compared with what it takes for a transaction in the traditional financial market, which could take up to 48 hours to be confirmed operation again.

ADVANTAGES AND DISADVANTAGES OF Bitcoin

Throughout the present work, it has shown that Bitcoin has many advantages for those who they use and have a business relationship with Bitcoin, either to purchase goods and services or because seen as a source of investment in the forex market 10. While it is beneficial for many, not It is for governments and central banks of countries, and that is why restrictions or prohibitions come by this specific group. Next, the advantages are presented, and Bitcoin has disadvantages.

10 The Forex market is a decentralized international market to buy and sell currencies. It helps companies or investors to convert one currency into another.

• ADVANTAGE

• No intermediaries in transactions: Therefore, there are no payment

commissions to any entity for the use of cards or transfers made.

Which it does not happen with traditional banks, where the charges are excessive. Although Most transactions are commission free, there is currently a bill or committee if you want to have less time confirmation of the deal, this generates compensation for miners who are expediting information. Now there a charge of $ 10 per any transfer regardless of amount or destination. Remittances

other countries have benefited from the Bitcoin since their cost is much lower.

Collecting generated use for the purchase of goods and services it is minimal approaches the Bitcoin 0,00001.

• Any transaction either by payment or transfer will not take more than 10 minutes. Is the estimated time to confirm that the money came out and entered the that was to come? Otherwise happens with the traditional financial system, where banking transactions may take up to two days for confirmation.

• Freedom of payments: You can send or receive money instantly and from anywhere in the world, at any time, without banks with schedules and have complete control over your money.

• Money is not attachable: You cannot foreclose to events where authorities consider it.

• If desired, you can store large amounts of money equivalent in Bitcoins without administration costs.

• Businesses are always done directly between buyer and seller.

• Lower risks for traders: are secure transactions, contain no data

personal and private customers and irreversible, this ensures that the money out, including the right person, it protects merchants against losses

by fraud.

• If desired, they can be made anomias transactions entirely without disclosing the user’s identity. No data transmission of personal data.

• Cryptography secures negotiations. Which indicates that they are insurance, messages have a digital signature and trying to hack.

• Security and control: users have complete control over their transactions, provides a high level of protection against identity theft. Each user can back the safety and encrypt information eleven.

• It is neutral and transparent: all information is available on the chain block 12 so that anyone can verify that information. Nobody can manipulate or Bitcoin control because it is cryptographically very safe, it’s reliable.

• It is a currency that is revolutionizing the world; it has changed the perception of money.

• The only way to clear the Bitcoin is one day disappear Service internet, which is not likely.

• Falsification: It is virtually impossible to forge. If you get to use twice coin Bitcoin system detects and rejects the transaction.

• It is an alternative payment choice is like PayPal, Visa, MasterCard or Bitcoin.

• There are no interests as known in the traditional system.

• DISADVANTAGES

• It does not yet have a relatively significant degree of acceptance. Many people still do not the term crypto coins known whereby the Bitcoin is not well known to the Majority of the population. While only 42 transactions per minute are performed with Bitcoin, VISA franchise records 165,000 transactions per minute.

• Although many shops have been implementing this currency as payment, yet very few when compared to the total, it is a coin that needs grow even more.

Eleven encryption: the process by which specific information is encrypted so that the result is unreadable unless the data needed for interpretation are known. It is done so that the data is not sensitive to obtain easily by third parties.

12 Chain blocks: public record of the transactions to be verified and ensure that Bitcoins have not been worn twice. It is a shared public accounting in the Bitcoin network is based.

• Volatility remains relevant. Bitcoins circulating and the amount of business using Bitcoin remain small compared to other types of traditional coins. Is why decisions or statements made by the governments strongly influence its price. While more established this currency and the higher the number of claimants and offers lower volatility.

• Not being a centralized currency by a State or Central Bank, the money may easily fluctuate over short periods of time.

• It is a cryptocurrency that is still developing to provide greater security and to be accessible to most people. Bitcoin still maturing. The majority of businesses that accept or negotiate with this currency should implement more security to its customers.

• Still has a long way to go, much depends on technology and access to this. In 2015 only 42% of the population had internet access, this we show that while there is this gap, the Bitcoin take some time to be of general knowledge because it depends entirely on virtual platforms.

• In case of any mishap occur, the law of each country will not protect any user since their use is at own risk. This causes some distrust many usurious.

• Because of its volatility, many traders do not accept product returns as the price may vary from one day to another.

• The transactions to be anonymous, it is difficult to identify the knowledge of the customer, which could lead to performing suspicious transactions.

This issue of Bitcoin and how it has penetrated the spheres of economies is of interest to them and even more common for States citizen, for the Colombian case, the government is not you beneficial allow Bitcoin become frequent use of the population, allow this

currency penetrate local markets all lead to that people take as currency the main Bitcoin, this would cause the Bank of the Republic stopped issuing money and consequent loss of seigniorage 13, since it would be acquiring the value of Bitcoin mining, further losses for commercial banks would be enormous, since everyone Bitcoin prefer to transact and not legal tender due to high costs and restrictions at the time of any transaction.

When looking at the big bank’s profits generated by charges for making any operation, disappear with the use of Bitcoin since this coin minimizes the costs and intermediaries because of their user-user system.

Due to the high fear on the part of central governments and banks themselves for the Bitcoin penetrate all spheres of the economy, they have spoken announcing their disagreement as they do not consider Bitcoin is a currency and efficient care is not as endorse any company or country. Both Banco de la Republica and the Financial Superintendence warned the Colombian people had limited the use of Bitcoin; their reasons are given to the It presents the currency volatility and prevents future economic losses.

Analysis background and the reason for the Governments, it is that this type of currency to be decentralized It is hard to formalize and regulate it so that users who use it to pay the appropriate tax amounts and transactions they perform. Is money you are leaving to perceive governments are operations that are made to avoid proper controls, plus it could become used for money laundering and no way to detect it quickly.

The Bitcoin to be a coin can be used for legitimate transactions as illegal, the difference between traditional currency and Bitcoin is the first far exceed in an amount to Bitcoin, why it is more comfortable to finance illicit activities with money traditional.

Another fundamental issue is the growth that has taken currency transactions as a business, many people are engaged in the Stock Market 14 transacting you pay with Bitcoin generate returns between the buying and selling of different currencies. Many brokers

13 Seigniorage: a source of income obtained by the right you have to produce money for the Central Bank.

14 The stock market is the integration of institutions, companies or individuals transacting financial products. They are held in the stock market.

The bag may consider replacing equity investments by investing in Bitcoin. We are looking at the Bitcoin price from its inception to date, people who bought this currency in 2009 at costs of $ 10 and sold at prices of June 2016, ranging near $650, they would be getting returns that exceed 6,000%. It is clear that many people may have obtained this currency when prices topped $ 1,000 then he suffered its collapse to around $ 200. It is a volatile currency, like many traditional, where its rate is based on trust to be accepted as payment today and for the future.

Due to the popularity in international markets, some governments have given positive this coin recognition is touching all spheres of the economy. Three countries significant financial issue and move much of the world on this subject have initiated measures to regulate power more efficiently all transactions in Bitcoin.

• Switzerland: the government has initiated all the processes of law to give the Bitcoin treatment international currency, achieved this code, Switzerland would be the first economy in the world Regular and take the lead to provide the treatment required and thus be able to freely all investment and attract foreign investors who wish to deposit their money in this country. Switzerland is a pioneer in everything regarding financial services, and you want to give the treatment of international currency Bitcoin, it is because he sees in this a high potential for further grow all their financial portfolio in the world.

• U.S: The government is considering how to regulate power so that the Bitcoin people can perform operations on this type of currency and thus be able to levy charges of people.

• Germany: like the United States, this country has been carrying out measures to enable and give free passage to trade with this type of currency. Germany is the pioneer country Europe with the most significant number of shops that already receive as payment the Bitcoin without But he desires that everyone who carries out any transaction with Bitcoin pay their taxes and not present evasion.

If these three countries are considered world powers have already started taking measures to regulate power and give it the treatment it deserves to Bitcoin as an international currency; it is because they see a coin with great potential for use in all transactions e. E-commerce is an issue of vital importance to all countries, ease payments, security and agility make the perfect Bitcoin currency for this type of transactions since the boom in online shopping comes in constant growth, regulation that many countries would follow the same trend, is the first step to give Free entrance to a currency in its short life has proved efficient in a challenging market to penetrate because of the economic and political interests of each nation are not willing to lose or give ground on the whole financial issue.

In Colombia, as in many countries, the decisions made at international level by the large economies would in the not too distant future be regulated in the same way this currency, the Colombian government is not surprising behavior that is taking the

Bitcoin, many Colombians currently being carried out various types of transactions and this coin investment that has revolutionized the way we view virtual businesses.

In an interview conducted by the newspaper El Espectador Luis Carlos Sarmiento Angulo fifteen published on June 17, 2015, it says the bank of the future is most competitive and is focusing on technological innovations. This critical entrepreneur ensures ” what all the days come to market new products, new facilities, and new systems; this makes the competition is fierce among banks currently “And adds that” come about dramatic changes On the bench the future because of technology advances that impressive speeds. All changes and now it does great and permanent investments especially efficient software that allow calculating new things “This trend is given and explained to virtual currencies and focused on most used is the Bitcoin. For this critical entrepreneur it is inevitable that the Bitcoin arrives to stay in our country, so he does not rule out the idea in the future to create your currency and in turn, support the purpose of promoting this type of money in the country. For the primary Colombia banker, all payment systems that come are entirely virtual, by which must be prepared to accept the Bitcoin as payment. Fifteen Building contractor and Colombian banker. Colombia’s most prosperous and is ranked 83 globally person.

The case of taxation in Colombia is not yet determined; there is no clarity on how You must pay taxes with Bitcoin or if it is not necessary. DIAN has not manifested to date with any outer circular which clarifies how to be submitted charges for people who are operating in Bitcoin, however on a subject that is being studied in the country, such reason soon have information about how to present information and taxation for operations being carried out not only in Bitcoin if not in all types of virtual coins, which are not regulated but are monies that the Colombian State is leaving you to perceive and therefore should be controlled in a non-traditional way such cryptocurrency.

CONCLUSIONS

The factors that have delayed the use of Bitcoin in Colombia is the lack of knowledge of new technologies, to break the paradigm that only serves traditional money for transactions, although gradually Colombian culture and has been familiarizing getting used to perform certain types of operations with credit cards, debit cards, handle virtual platforms few banks and manage virtual wallets banks traditional. It is a matter of time for people, companies and the same entities governmental become familiar with the Bitcoin system so that to bring this technology and everyone can access it.

Access to technology and training to understand the operation and use of Bitcoin is vital for the Colombian people to break the traditional scheme that has been We handling, we are in a globalized world where everything is being done virtually, where the E-commerce plays an important role, and it should be understood that not only money which produces the state it is one that creates value and serves to trade goods and services and even Forex trading. This coupled with still thought to make Internet transactions insecure and this is reflected in Colombia’s population yet uses more methods traditional bank like going to physical offices that use virtual banks to perform same operations, in fact, according to financial supervision in Colombia is estimated that only 10% of total household payments are made with virtual payments.

Lack of financial education is another aspect that has not allowed understand the potential You can make this electronic currency for users, the fear of adopting new systems mistrust and does not let for an evolution in these systems should weigh advantages and possible disadvantages for each particular case and this is achieved with financial education, where there are objective parameters for determining the adoption of these new schemes technology.

The media have played an essential role in the acceptance of this technology, negative aspects publishing biased information about Bitcoin and on recommendations and warnings that both the Banco de la Republica and the Superintendence Financial have done, they generate distrust and fear among the population to implement this

virtual currency. If the Colombian community had the necessary financial education, would analyze a depth economic impact has tended the Bitcoin, not only in Colombia but throughout the world, so much so that many economies are already thinking about regulating it to circulate free to make their own decisions.

The lack of clarity from the government of Colombia has not allowed the Bitcoin comes with strength has done so in many world economies. In the case of Germany, Switzerland and United States who have permitted their operation and have some regulation for taxation, which has helped all users have clarity and certainty of their legality and It has been massing its use. Bitcoin is imminent that penetrate the Colombian market and has which thoroughly regulate this cryptocurrency. The Government should provide clarity for this system operate freely and the certainty of its legality have, which would lead to the use of Bitcoin is massive and can counteract volatility.

The Bitcoin could potentially have higher penetration if adopted as currency for transactions and you educate people to make use of electronic commerce, because in the country and according to

financial supervision, currently 90% of all payments are made in cash, but all companies are implementing payments electronically, which is an excellent opportunity for the Bitcoin between actively and set as preferred currency for all such transactions that benefit the consumer cost, safety and weather.

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