United States Dollar and Currency Essay - 621 Words

1. International Business Issue - Can Bitcoin be a stable currency for international business? Definition, Application, and Prospection 1)What is Bitcoin? Bitcoin is an open source peer-to-peer payment network and digital currency introduced in 2009. It is the first decentralized digital currency. It is the digital coin that you can send through the internet. Compare to other alternatives, Bitcoins have a number of advantages. Bitconins are transferred directly from person to person. This means that the fees are much lower you can use them in every country. Bitcoins are generated all over the internet by anybody running a free application called a bitcoin miner. Mining requires certain amount of work for each block of†¦show more content†¦It is almost 10000%. The stability of bitcoin as a currency is still controversial. Thus, I would like to say that though bitcoin has a lot of advantages, it has some definite weaknesses to be a substitute for currencies. Firstly, there have been lots of different form of virtual currencies so far. And they all got shrunk. If someone is a good programmer, anybody can make a new digital currency. If so, the advantage of bitcoin which is that there is a limit for issuing amount will disappear. Moreover, existing currencies are based upon each nations control. Currency economies cannot exist outside of taxation systems. As most all of the nations are operated by tax, governments will not permit the free trade of electronic currency which is operated outside of taxation system. Actually, the China Central Bank announced that as the bitcoin is not a genuine currency, it cannot have a legal status. They also said that any financial institution or company cannot put a price of bitcoin and guarantee products that related to bitcoin. South Korea government also stated that the bitcoin is a product which cannot be protected by Korean laws. Because the bitcoin has a possibility to be abused in many ways. It is against the Korean real-name financial system and can be used as a money laundering. Obviously, the bitcoin is one of the new flows in international business. However, it has many limits to be a substitute for real currencies. Economy cannot be detachedShow MoreRelatedUnited States Dollar as Reserve Currency1871 Words   |  8 Pages(IMF) shocked the world by calling for the United States dollar to be replaced as the global world currency (Rooney, 2011). In one report, the world’s dirty little monetary secret had been exposed; faith in the US dollar was faltering. Since then, international attitudes toward the US dollar have only gotten worse. With 2013 debt at approximately 105 percent of gross domestic product and a negative outlook rating from Standard’s and Poor, the United States is looking like an insolvent bank no one wantsRead MoreUnited States Dollar and Foreign Currency Information1014 Words   |  5 Pagessentences. 0.5 points) * The type of business I would start would be for family or friends gatherings. This business would be place people come to eat and social, a nice, warm environment. b. Describe at least two ways in which the local, state, or federal government would have an impact on your business. (2-4 sentences. 1.0 points) * Whether businesses owners know it or not, but the government create laws and regulation to protect the business. 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