Financial Technology Bitcoin is an Innovative Currency

Question: Discuss about the Financial Technology Bitcoin is an Innovative Currency. Answer: Overview of Bitcoin Bitcoin is an innovative currency form which is digital in nature. This empowers the rapid payment to any individuals at any place in the world. There is no central authority which regulates Bitcoin as it operates over the peer-to-peer technology. In this technology the transactions are managed as well as the money is been issued by the collective networks. Bitcoin Core is basically open source software that helps in the usage of this currency effectively (GitHub, 2017). Opportunities and challenges Bitcoin is one of the simplest and fastest ways to exchange the money among individuals at a very low price. There are several opportunities and challenges associated with the use of the technology. Opportunities The physical currency was evolved thousands years back and now with the technological development there has been introduction of the digital currency. There are number of opportunities which are there for the development and use of digital currency. For meeting the requirements of the contemporary financial activities and for solving several issues there is an extreme need of the digital currency to be regulate all across the world. It is the virtual currency which simplifies the complex transactional methods and processes (Bitcoin Project, 2017). There are abundant opportunities for Bitcoin to achieve worldwide recognition as it is a vital opportunity for Bitcoin to feel the gap which exists between the use of physical and the digital currency. There has also been issued the credit card of Bitcoin which makes the transactions easy and convenient. Another wide opportunity present for Bitcoin is to improve the system sin such a manner that it eliminates and prevents all types of frauds and scams (Vandervort, 2016). There are available several other opportunities for Bitcoin such as the increased network security service and insurance corporation so that insurances can be offered to the one who are Bitcoin deposits. Challenges With the effective application of Bitcoin there are few severe challenges which have been associated with the use if this digital currency. These challenges are the threat for the successful execution and application of the digital currency in the longer time frame. The primary challenge for Bitcoin is that it is the initiating phase of digital currency and so there is lack of some of the vital components which restricts Bitcoin to be highly trustworthy and reliable. The next challenge is that there have been identified several case of hacking attacks (Belov, et al., 2014). There is extreme lack of security which raises concern regarding the safety and the security of the investments deposited as well as transactions taking place. The third biggest challenge for Bitcoin is that till the time there is no insurance and legal counseling regarding the use and application of Bitcoin there are chances of errors and security issues. Hence it is essential that there must be setting up of var ious insurances and security network for Bitcoin to make the transaction secure as well as safe (Astruc, 2014). Bitcoin: A future unicorn using the LASIC principles FinTech is continuously receiving great attention of the people. It has been evaluated that there has been a grown of the global investments of three times in the FinTech Ventures. There are LASIC principles over which the technologies are analyzed. LASIC can be understood as Low margin, Asset light, Scalable, Innovative, and Compliance easy. Bitcoin is the blockchains or distributed ledgers which is considered as the future unicorn using the LASIC principles. With the rapid usage of innovative and techno savvy financial services there is a need of digitalized currency. Presently it has been identified that out of the total world population approximately 38 percent has no formal bank accounts. And approximately 40 percent of the overall population is been underserved by the banking institutions (Chuen and Teo, 2016). These facts and data display that there is an extensive market need which highly demands for digital currency. Bitcoin is that rising component which will have a vital a nd major part of the worlds population taking use of it. Bitcoin can easily be understood as the digitalized form of payment. The use of Bitcoin is so extensive that through it the individuals can buy computers, send currencies to individuals residing in other nation but in small amount s, buy anything over Overstock etc. the primary advantage of using Bitcoin is that there is no need for getting concern over the currency conversion or exchange rate fees as there is no such costs associated with the use of Bitcoin (Rosenblum, 2014). Analyzed from the lenses of LASIC principle, it can clearly be stated that Bitcoin is of very low margin, the asset is also extremely light, it is scalable in nature, it is considered as one of the prime innovation in the financial services and its easy to compliance. There has been increased number of launched of the Bitcoin firms (Johnson, 2016). This is the major reason behind the elevated use of Bitcoin as consumers are fin ding it extremely easy to take use of. The popularity and potentiality of Bitcoin can be analyzed by the means that it has been taken use of some of the well renowned organizations. NASDAQ and American Express are two such biggest giants which are using Bit coin and finding it much significant and effective (Collard and Gavray, 2015). There are number of activities which can be performed through the use of Bitcoin such as it protects the identity of an individuals, there is no particular fees to maintained for the wallets of Bitcoin, rapid international payments, easier mobile payments, works anytime and everywhere and have control over the money. Except all these there are several other benefits which the companies and individuals will be getting in the future tome frame of taking use of Bitcoin (Vandervort, 2016). All these factors show that Bitcoin will be shortly recognized as a future unicorn using the LASIC principles. References Astruc, M., (2014). Global Challenges, Opportunities Of Cryptocurrencies Such As Bitcoins, Retrieved on: 14th February, 2017, Retrieved from: https://www.ip-watch.org/2014/06/24/global-challenges-opportunities-of-cryptocurrencies-such-as-bitcoins/ Belov, D., Rajam, S., Summers, Q., Sun, Q and Yun, S., (2014). Challenges and New Business Opportunities for Bitcoin, Pp.12, Retrieved on: 14th February, 2017, Retrieved from: https://ikhlaqsidhu.files.wordpress.com/2014/10/elppprojectiwhitepaper_2014_bitcoin_final.pdf Bitcoin Project, (2017). Bitcoin for Individuals, Retrieved on: 14th February, 2017, Retrieved from: https://bitcoin.org/en/bitcoin-for-individuals Chuen, D.L.K. and Teo, E.G.S. (2016). Emergence of FinTech and the LASIC Principles, Pp.17, Retrieved on: 14th February, 2017, Retrieved from: https://skbi.smu.edu.sg/sites/default/files/skbife/research_papers/Emergence%20of%20FinTech%20and%20the%20LASIC%20Principles.pdf Collard, E. and Gavray, G., (2015). Demystifying Bitcoin Threat or Opportunity? Pp.8, Retrieved on: 14th February, 2017, Retrieved from: https://cmo.deloitte.com/content/dam/Deloitte/lu/Documents/financial-services/lu-demystifying-bitcoin-threat-opportunity-102015.pdf GitHub, (2017). Bitcoin, Retrieved on: 14th February, 2017, Retrieved from: https://github.com/bitcoin/bitcoin Johnson, B., (2016). The Challenges and Opportunities of Bitcoin for the Entertainment Industry, Retrieved on: 14th February, 2017, Retrieved from: https://medium.com/@ProjectGruvi/the-challenges-and-opportunities-of-bitcoin-for-the-entertainment-industry-cc488af45106#.vjm6bi5j0 Rosenblum, P., (2014). Bitcoin: The Currency Of The Future? Forbes, Retrieved on: 14th February, 2017, Retrieved from: https://www.forbes.com/sites/paularosenblum/2014/01/27/bitcoin-the-currency-of-the-future/#9b7a5b611d31 Vandervort, D., (2016). Challenges and Opportunities Associated with a Bitcoin-based Transaction Rating System, Pp.10, Retrieved on: 14th February, 2017, Retrieved from: https://fc14.ifca.ai/bitcoin/papers/bitcoin14_submission_5.pdf