E-business challenges in the field of payment solutions - Bitcoin a sustainable currency or gambling
Journal Title: Zeszyty Naukowe Wyższej Szkoły Finansów i Prawa w Bielsku-Białej - Year 2018, Vol 22, Issue 3
Abstract
Money is a widely accepted commodity allowing to determine the economic value of purchased goods and services and to make payments. Over the centuries, "money" has been constantly evolving. In recent times, following dynamic development of various forms of e-business, dematerialized money has emerged. However, in constantly changing conditions it is very difficult to grasp the essence of the so called e-money or cryptocurrencies. The paper tries to define Bitcoin, one of the most recognizable cryptocurrencies, and answer the question whether investing in cryptocurrencies is a serious business or a mere gambling. In search for the answers, the author reviews literature on the topic and conducts his own risk analysis based on Value at Risk measure, of selected traditional currencies and Bitcoin. The results of the analysis unambiguously show that investments in Bitcoin are burdened with definitely much higher risk. Furthermore, conclusions of the considerations clearly show that despite growing popularity of cryptocurrencies they do not fulfill the definition of both electronic money or money in general. The paper attempts to discuss selected issues related to Bitcoin cryptocurrencies from the monetary point of view but also with respect to restrictions of Bitcoin as a means of payment, investments in Bitcoin and risk assessment.<br/><br/>
Authors and Affiliations
Jacek Binda
Keywords
Related Articles
- EP ID EP408178
- DOI 10.5604/01.3001.0012.7280
- Views 54
- Downloads 0
ANALIZA KOSZTÓW I KORZYŚCI ZASOBÓW LUDZKICH W PERSPEKTYWIE PRZEDSIĘBIORSTWA
Wkraczając w nowe tysiąclecie i gospodarkę opartą na wiedzy, niezaprzeczalne stało się to, iż to ludzie, a nie pieniądze, budynki i wyposażenie, są głównym czynnikiem decydującym o jakości przedsiębiorstw i ich przyszłoś...
IMPORTANCE OF THE UNIVERSAL SERVICE IN THE CONTEXT OF THE DEBATE OVER THE RIGHT TO ACCESS TO THE INTERNET
The paper presents universal service regulation seen as an expression of positive aspect of the right to the Internet access. It describes how the relevant regulation developed and discusses its implementation in a chose...
MEDICAL THERAPIES AS A PREVENTIVE MEASURE UNDERTAKEN TOWARDS VICTIMS AND OFFENDERS OF SEXUAL CRIMES. EXPERIENCES OF THE SLOVAK AND CZECH REPUBLICS
The paper highlights the issue of sexual crime in the Slovak and Czech Republic. Also selected activities related to prophylactic and therapeutic initiatives undertaken in the above–mentioned countries towards victims an...
Risk Premium for Loss of Employment in Polish Regions
On the basis of the income-based valuation method of intellectual capital of the region in the previous papers, the author discovers a need for a valuation of the risk premium which should be included in the rate that di...
Identification of a crime perpretator based on trace evidence
The application of advanced methods of trace identification at a crime scene has made a substantial contribution to the identification of offenders. An accurate identification as well as preservation of forensic traces a...