INTRODUCTIONCryptocurrency is a scheme that has been taking a .docx

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.
BIBLIOGRAPHY
• Pagliery, J. (2014). Bitcoin. And the future of money.
Chicago: Triumph Books LLC
• Ciaian, P., Rajcaniova, M., Kancs, D. (2016). The
economics of Bitcoin price formation. Applied Economics, 48
(19), 1799-1815.
• Ram, A., Maroun, W., Garnet, R. (2016). Accounting for the
Bitcoin: accountability,
Neoliberalism and to correspondence analysis. Meditary
Accountancy Research, 24 (1), 2 - 35.
• Bradbury, D. (2013 November). The Problem with Bitcoin.
The feature, pp. 5-8.
• Dwyer, D. (2014 December 15). The economics of Bitcoin
and like digital private currencies. Journal of financial stability,
pp. 81-91.
• Vasquez, M. (2014). Bitcoin ¿ currency or bubble? Chilean
magazine of economy and society, [online] Available at:

http://rches.blogutem.cl/files/2014/10/revista_1_2oct_2014_art0
3.pdf
• Sisternes, A. (2013). Bitcoin history: how it has evolved
over the years? Rankia.
[Online] available in http://www.rankia.com/blog/divisas-y-
forex/2082787- history-bitcoin-
as-evolved-these-years
• Martinez, J. (2013 Oct 20). ¿ How to buy Bitcoins in
Colombia? Vanguard. [in
line] Available in:
http://www.vanguardia.com/actualidad/tecnologia/230254-
como-buy-bitcoins-en-Colombia
• Satochi, N. (2009 May 24). Bitcoin: A Peer-to.peer
Electronic Cash System. [online]
Available at: https://bitcoin.org/bitcoin.pdf
• Weidai, bmoney. (1998). [online] Available in:
http://www.weidai.com/bmoney.txt
• Drafting the country. (2014, April 27). Thus the Bitcoin
works the virtual currency.
Revolutionizes to the world. He country. [in line].
Available in:
http://www.elpais.com.co/elpais/economia/noticias/sabe-usted-
bitcoin

• Colprensa. (2014, April 01). Banco de la Republica warns
that the currency Bitcoin.
Not valid in Colombia. He country. [in line]. Available
in:
http://www.elpais.com.co/elpais/economia/noticias/banco-
republica-advierte-moneda-bitcoin-
no-valid-Colombia
• The viewer. (2014, March 27). Bitcoin alert in Colombia.
[online]. Available
in: http://www.elespectador.com/noticias/economia/alerta-
bitcoin-colombia-articulo-483080
• Bitcoin Portal. [online]. Available at:
https://bitcoin.org/es/faq
• blockchain platform shows real-time transactions. [Online]
available at: https://blockchain.info/
• Portal bitstamp. Prices weather real bitcoins. [in line].
Available in: https://www.bitstamp.net/
• Internet Blog. Types of alternative currencies and its
extension. [online]. Available in:
http://www.miunetenetblog.com/post/tipos-de-monedas-
alternativas-y-su-extension

Works Cited
“Cryptocurrency Market Capitalizations.” CoinMarketCap,
coinmarketcap.com/.
Reding Health Group Enterprise Network Project Overview
NTC/320 v3
2
Reding Health Group Enterprise Network Project
OverviewProject Overview
Reding Health Group (RHG) needs a new enterprise network.
As part of their bid process, they have asked your organization
to submit a design proposal in five weeks.
In Weeks Two through Five, you and your team will submit the
following milestone assignments:
Week Two
Create an annotated high-level design enterprise network
diagram for Reding Health Group.
Week Three
Diagram detailed designs of the Local Area Network (LAN),
Wide Area Network (WAN), and Edge Network.

Week Four
Diagram the integration of the Wireless Local Area Network
(WLAN) and datacenter/Demilitarized Zone (DMZ) into the
network design.
Week Five
Complete the voice and video network design and compile your
design for submission.
Reding Health Group Business Needs and Network
Requirements
Reding Health Group (RHG) is the administrative and
management division of several healthcare providers including;
hospitals, clinics, labs, imaging cites, individual medical, and
allied care professionals.
The RHG division consists of:
· Headquarters
· Three buildings on one campus
· 200 employees
· The data center is located at headquarters and includes a
disaster recovery location
· Four branch locations
· All locations are within 30 miles of the headquarters and are
in a single state
· Each location has between 1 and 15 employees
· Five major departments
· Executive management
· Finance
· Operations
· Marketing
· Compliance
The requirements for the new enterprise network include:
Unified communication services that use voice and video, in

addition to email
Data and communication security is essential, including for the
wireless network
High-bandwidth internet connections with speeds equal to or
greater than 50 Mpbs
Network traffic for each department must be contained within
its own, isolated network
A secure DMZ site containing public-facing services, including
public web servers and third-party business servers, is needed
· Third-party partners require the site be protected by perimeter
and data center firewalls for controlled business information
exchanges
Copyright © 2017 by University of Phoenix. All rights
reserved.
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)

INTRODUCTIONCryptocurrency is a scheme that has been taking a .docx

INTRODUCTIONCryptocurrency is a scheme that has been taking a .docx

More Related Content

Similar to INTRODUCTIONCryptocurrency is a scheme that has been taking a .docx (20)

More from normanibarber20063 (20)

Recently uploaded (20)

INTRODUCTIONCryptocurrency is a scheme that has been taking a .docx