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Ⅶ Appendix

ideal currency that precludes shortcomings of those fiat cur- entails, as is the case with all decentralized digital currency
rencies. Throughout the history, no one could solve the prob- or crypto-currency. Bitcoin, despite being the biggest decen-
lem of distribution. With “real” decentralized structure, having tralized economic platform in the market, still shows symp-
no central control, no central repository of information, no toms of economic speculation, devoid of any real estate or
central management, and no point of failure; bitcoin avoids substantial credit. Its unreliability in value, limited develop-
being coercive centralization but strongly assumes a mar- ment and lack of a centralized control tower, and frequent
ket-based centralization structure. The world’s monetary value fluctuations indicate that Bitcoin may prove to be an
systems are coercive since national fiat currencies are cre- unreliable currency to depend on in the future. Moreover,
ated and managed by the government-sponsored central Bitcoin may be ubiquitous, but crypto-currency - and Bitcoin
banks with regulations. On the other hand, bitcoins opt out - is not universal - some countries are prohibiting usage of
to existing monetary systems and averts any sorts of third- alternative currency out of a belief that it may topple the con-
party gateways that somehow intervene in direct transac- ventional market of world currency where international con-
tions. Thus, a user of Bitcoin is never forced to utilize a junctions will come into vital importance in global marketing,
centralized service, unlike users of the traditional banking Bitcoin lacks the one fundamental element to suffice as a
industry. practical global exchange currency: reliability.

Decentralized structure is not a mere reason bitcoin has the
potential to emerge as an alternative currency. Its encryption
algorithm allows bitcoin users to keep their bitcoins in a cyber
“vault”, where owners keep a hard copy of their encryption
cipher. There’s always a possibility when bitcoin exchanges
can be hacked, and with its cipher kept in “vault”, users are
safe. In other words, only the owner has the code to access
his or her stored bitcoin. Moreover, bitcoin’s methodology
and sources that materialized it has been opened to the
public. Thus, there cannot be any sorts of scam in bitcoin
industry. Instead, their publicized methodology builds up trust
among bitcoin users. This trust, formed by publicized
methodology, algorithms and source codes, allows bitcoin ◀ Bitcoin Price
industry to prosper in transaction fields and function well as
an alternative currency.
Ⅵ. Conclusion & Limitations
With these benefits, bitcoin market is continually increasing.
Consumers are switching from fiat currencies to bitcoin, and Bitcoin is the first of its kind to establish itself as a sufficient
this further builds the demand of bitcoin, ultimately contribut- platform, accompanying record low fees and attracting
ing to the stabilization of bitcoin prices. As a result, this tilt will hordes of customers from conventional financial platforms.
incapacitate the old paradigm and trigger the systematic de- With its decentralized administration system and unprece-
valuation of all fiat currencies, resulting them to reach the dented ubiquity, Bitcoin has been heralded as a break-
zero point. With the advent of a new paradigm, crypto-cur- through in economics. However, Bitcoin currency is still
rency is past the early adoption phase and has moved into vulnerable and not all countries are willing to readily accept
the mainstream. In a near future, there will be more trans- it as an alternative currency, giving up their own currencies
actions done with bitcoin and fiat currencies will be gradually in change for the highly ubiquitous, intangible currency.
phased out. Transactions are easily traceable and transparent, but are
irreversible and can be used in illegal transactions.
However, we must be aware of its market and the risks it

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