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Bitcoin – The status, impacts and prospects

Dark web is the section of the web that is not accessible through the search

engine. What we are given access to is the surface web which is not even half of

the existing internet. Dark web is accessible only through special software like Tor

Browser which enables anonymous searching of the internet.

Dark web is the place where you can find assassins, weapons and a lot more

illegal stuff. By using crypto currencies like Bitcoins people can make illegal

transactions without giving any information about themselves. Cryptocurrencies

like Bitcoins are a way to empower such transactions across the globe which will

ultimately result in increased cyber crime.

2.2. Speculations

As on 14th January 2015, Bitcoin was valued at $170 and as on 24th July 2017,

it values at $2772. There have been many ups and downs in the value of Bitcoins

and this scenario is likely to continue. Due to the extreme highs and lows BitCoins

present a massive possibility for speculation. Just like trading in shares, trading in

Bitcoins is massive and seeing the rise in traction around cryptocurrencies it is

likely to grow further.

Another reason accounting to this is the increasing cost of investing in the

stock markets. A share in Apple or Facebook can cost around $150 while Bitcoins

can be bought in fractions at a price as low as one-tenth of a cent. This makes it an

easy target for speculative gains.

2.3. Politicization of Money

Earlier all the monetary transactions were enabled through central banks

(directly or indirectly). Now, with the evolution of Bitcoins, the scenario has

changed. The power that was vested in the governments and central banks is

shifting to the masses. This revolutionary change in transaction handling has the

power to change the economic structure. To bring security and enable scrutiny,

central banks and financial institutions maintain a record of all the transactions

undertaken by the people. Now with digital currencies, this economic power can

be challenged by people. This has led to the creation of a new autonomous body

which can facilitate transactions. Ultimately if adopted on a large scale, Bitcoins

can lead to the politicization of money.

2.4. Apprehension among the Central Banks

There have been implications that Bitcoins can be used to secretly launder

money outside the country. Central banks across the world have been wary of



Bitcoin – The status, impacts and prospects

Bitcoins as an uncontrollable and unpredictable form of currency.

Cryptocurrencies are leading to loopholes in the current bank’s data about the

money transactions leading to inability to track economic activities. Crypto and

Cyberspace has emerged as a power in itself thus bringing a check on the activities

of the so powerful governments.

2.5. The Emergence of New Markets

Cryptocurrencies have led to the emergence of new markets. Currencies like

Bitcoin and Ethereum have opened gates for a new kind of market which unlike

present money market is controlled by no one. Cyberspace will rise up as the

managing body that will handle and maintain such disruptive markets. The near

zero transaction cost (along with other characteristics) has made these currencies

even superior to the traditional money we are accustomed to using. What can be

surely stated is that it is just the beginning and the number of possibilities is



1. The big prospects for bitcoin

The Bitcoins seem to have a potentially great future:

International currency

Alternative to real money

Fast translations

Impossibility to forge currency

Are not subject to inflation

The following two graphs can testify to a bright future:

Picture 3: Transaction schedule Bitcoin



Bitcoin – The status, impacts and prospects

Picture 4: Chart of Capitalization Bitcoin

2. The forecast of bitcoin

Investors were divided into two camps: some believe that Bitcoin will end,

while others believe that everything is just beginning. Each side has its own

convincing facts and counterarguments.

2.1. Optimistic forecast for Bitcoin in 2018

Optimists believe that the rate of Bitcoin in a couple of years (possibly tens of

years) can generally reach up to 100 thousand dollars for 1 BTC, but it is only in

the future. Personally, I think that this is quite realistic if the governments of the

countries can agree among themselves and make it legal.

A favorite counter-argument among optimists is a comparison of Bitcoins with

real gold (they are often called "virtual gold"). Remember the demand for real

gold. Once $ 300 for one ounce was considered very expensive. During the 2008

crisis, gold rose and reached $ 1,800 per ounce. And what is gold? Than it is

provided? It's just metal. Bitcoins are also not provided with anything. However,

the potential opportunity to make it an international currency makes for it

unlimited growth prospects.

An adequate forecast indicates that in 2018 the cost of Bitcoin will be around $

10 thousand. There should be no sharp falls. Most analysts and banks expect


Forecast for Bitcoin in 2017: $ 1000 .. $ 10000

Forecast for Bitcoin in 2018: $ 5000 .. $ 13000



Bitcoin – The status, impacts and prospects

The forecast for the Bitcoin rate in 2019 is 8000 $ .. 27000 $

2.2. Pessimistic outlook for Bitcoin in 2018

The main reason for pessimists is that the Bitcoins are outlawed and that their

cost is artificially inflated. They are sure that governments will never legalize the

currency with such prospects.

The second weighty argument against the Bitcoins is the question of the

security of your virtual money. If you lose or steal coins, no one will return them to

you, as it is impossible for someone to prove anything and return it. However, this

issue should be resolved over time through the release of ever newer versions of

wallets, which will have better protection levels.

A pessimistic forecast indicates that the rate will be in the region of $ 1,0002,000 per coin.


1. Buy and holding

The most common form of “investing” in Bitcoin is buying the currency in

hopes it will appreciate in value. If this is the case then you need to decide for

yourself if you think this is a good time to buy. Meaning, do you think the price

will continue to rise

A few pointers for buying and holding Bitcoins:

Never invest more than you are willing/able to lose – Bitcoin is a very

risky investment and you should keep in that in mind at all times.

After buying Bitcoins make sure to move them into your own personal

wallet and never leave them at the exchange. My personal recommendation is to

use a hardware wallet to store your Bitcoins. If you can’t afford a hardware wallet,

try a paper wallet.

Make sure to buy Bitcoins only from exchanges that have proven their


Buy Bitcoins through Dollar cost averaging – This means that you don’t

buy all of your Bitcoins in one trade but instead buy a fixed amount every month,

week or even day throughout the year. This way you average the price over the

course of a whole year.

2. Trading in Bitcoins

Bitcoin trading is different than buying and holding. When you are trading

Bitcoins it means that you are actively trying to buy Bitcoins at a low price and sell

them back at a higher price in relatively short time interval. Trading successfully

requires knowledge and practice. The trading market is occupied by very large

players who are just waiting for newbies to come in and throw their money away

by trading aimlessly.

3. Investing in bitcoin

Some people would like to invest their money into mining Bitcoin. For the past

few years mining Bitcoin is only profitable if done at large scales. This means you



Bitcoin – The status, impacts and prospects

will need to get expensive mining equipment and hopefully have access to free

electricity. Also it’s usually much more cost effective to buy Bitcoins with this

money instead of using it to buy mining equipment.

Some of you may have heard of all sorts of sites that allow you to mine

Bitcoins through them. This is known as cloud mining and these sites fall into one

out of two categories:

They are complete scams that will run away with your money and don’t

actually use it to mine Bitcoin.

They are not scams, but they are bad investments since you will

probably get more Bitcoins if you just use that money to buy Bitcoins instead of

paying the site.



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