Introduction The main purpose of this Bitcoin assignment help is to evaluate the bitcoin in the concurrent economy and market place. Along with this, the transactions in relation to the bitcoin by the users are also discussed. Furthermore, the economic status of the currency is also evaluated in relation to the exchange rate. In addition to this, the
Bitcoin Assignment Help[/caption] purchasing power parity and approach for the mining of bitcoin are also assessed to deter the influence over the perspective market. On the other hand, some of it historical path are also analyzed to determine the growth and pricing of bitcoin as well. Discussion on the Bitcoin Bitcoin trading has become one of the most ways to payment at worldwide. At the same time, it is also a trending in the market to use the bitcoin for easy and safe payment because the payment through bitcoin in not much bounded for the regulation. On the other hand, it is mostly used by the small business enterprises because it does not charge the credit card fees for transaction.
In the perspective, bitcoin can be purchased through exchanging the currency of different country such as Bitsmap, Bitfinex and Coinbase (Economics, 2015). In addition to this, the bitcoins can be surged from the mining of bitcoins as it can be gained through the solving puzzles and it rewards the 12.5 bitcoins in every 10 minutes. Bitcoins basically stored in the digital wallet so that any one cannot steal from the owner. Bitcoins are also a crypto currency which is used for the purpose of generating units of concerned currency. In relation to this, the bitcoin can be used to purchase online products as it is owned as the money as kept in banks and people need not to move for the banks for safety (Coindesk, 2018). The payment system through bitcoin is started in the year 2009 through encryption method and it is used by the parties as virtual currency. In the exchange market the market valuation of bitcoins have been reached up to the 1 million in the year 2011, it is also expected that the market capitalization might reach up to the 1 billion by 2013 (McGoogan and Titcomb, 2018).
From the above market trading, the year 2013 was the peak time when the bitcoin has reached up to the 1 billion. (Source: Steemit, 2015) The working of bitcoin In order to transaction with the bitcoin, it has a private key which is used for the password and it is unlocked by the receiver through the support of sender. The transaction of bitcoin is traded as follows Purchasing power parity in the exchange market of bitcoin The theory of purchasing power parity is used for the exchanging the bitcoins in the market transaction. In this transaction, the purchased product for the nominal rate can be traded at same price in any country. The exchanges are working as the brokers who are providing the platform to the different sellers and buyers. From the market review, it is assessed that the 26 countries are traded over the bitcoin exchange as of April 2015.
On the other hand, MtGox collapsed asserts that the risk might occur due to the holding of assets over the digital platform, as hacker locked the $460 million in the year 2013 which was a shock for the bitcoin exchangers. The purchasing power parity theory is useful in context of buying the basket of goods when party can purchase in any country with any currency. On the other hand, over international market, good arbitration can be occurred when one cheap value of products can be purchase and it can be sold out at the expensive rate. In addition to this, if the price for the goods of basket is different then it may be comparable as it is not exchanged with the nominal rate. Determination of exchange rate for bitcoin Here, A, B and C are the countries and p is represented as the price of basket. From the use of consumer index, the nominal rate for United States and United Kingdom as UK and USA Exchange Rate from 1996 to 2014 Price of Euro Zone in British Bitcoin Conclusion On the basis of above analysis, it can be concluded that the bitcoins are trade at high degree. At the same time, purchasing power parity is relatively related to the nominal rate of the product.
References- Coindesk, (2018) What is Bitcoin. [Online]. available at: https://www.coindesk.com/information/what-is-bitcoin/ (Accessed: February 06, 2018). Economics, (2015) Essays on Bitcoin. [Online]. Available at: https://economics.nd.edu/assets/165129/alex_kroeger_essays_on_bitcoin.pdf (Accessed: February 06, 2018). McGoogan, C. and Titcomb, J. (2018) What is bitcoin, how does it work and what affects its price. Available at: http://www.telegraph.co.uk/technology/0/what-is-bitcoin-everything-need-know-about-the-cryptocurrency/ (Accessed: February 06, 2018). steemit, (2015) Purchasing Power Parity of Bitcoin compared to the Dollar – Part one. Available at: https://steemit.com/bitcoin/@adis992/purchasing-power-parity-of-bitcoin-compared-to-the-dollar-part-one (Accessed: February 06, 2018). if you looking for original and quality Bitcoin case study assignment help then you can contact us any time.