DIGITALIZATION OF GLOBAL BUSINESS ENVIRONMENTS

CRYPTOCURRENCY-BITCOINS

Dr. P.Yasodha, Assistant Professor,Department of Management,

Sasurie College of Arts and Science,
Tirupur. Email id: raga_1915@yahoo.com Mobile no: 7094313770, 9385959707
Ms. A.Nila, Assistant Professor,Department of Commerce(PA),
Sasurie College of Arts and Science,
Tirupur.Email id: nilaalageshanphd@gmail.com Mobile no: 7305519185

ABSTRACT

In ancient times,transactions were done through barter system. To overcome the difficulty in
barter system, many exchange medium were introduced like Gold, coins, rupees,cheques etc.
We are also using digital moneyin the form of Debit card, Credit card, RTGS and NEFT to
transfer money. All these transactions are controlled and regulated by the respective
Government and the Banks.So we have to pay various charges and taxes to the Government
and the Banks for our transactions.

Crypto currency is a digital asset that can circulate without the centralized authority of a bank
or Government.It’s a peer-to-peer system that can enable anyone anywhere to send and
receive payments. When we transfer crypto currency funds, the transactions are recorded in a
public ledger. Cryptocurrency is stored in digital wallets.There are many types of Crypto
currency. Some popular ones are Bitcoin, Litecoin, Ethereum, and Zcash. And a new
cryptocurrency crops up every single day.

Key words: Digital money, Peer to peer, Cryptocurrency,Bitcoin.

INTRODUCTION

In ancient times, transactions were done through barter system. To overcome the difficulty in
barter system, many exchange medium were introduced like Gold, coins, rupees, cheques etc.
We are also using digital money in the form of Debit card, Credit card, RTGS and NEFT to
transfer money. All these transactions are controlled and regulated by the respective
Government and the Banks. So we have to pay various charges and taxes to the Government
and the Banks for our transactions. In that way in this presentation we have choosed to
present you about cryptocurrency and its one of the type called Bitcoins.
ABOUT CRYPTOCURRENCY

Cryptocurrency is a digital asset that can circulate without the centralized authority of a bank
or Government. It’s a peer-to-peer system that can enable anyone anywhere to send and
receive payments. When we transfer crypto currency funds, the transactions are recorded in a
public ledger. Crypto currency is stored in digital wallets. There are many types of Crypto
currency. Some popular ones are Bitcoin, Litecoin, Ethereum, and Zcash. And a new crypto
currency crops up every single day. A units of crypto currency are called coins or tokens.
There is a technology to enable the existence of cryptocurrency which is called as
Blockchain. A blockchain is a decentralized ledger of all transactions across a peer-to-peer
network. Using this technology, participants can confirm transactions without a need for a
central clearing authority. Potential applications can include fund transfers, settling trades,
voting and many other issues.
Origin of Crypto currency:

Crypto currency was originated by the idea for crypto currency. It was first emerged in 1983,
when American cryptographer David Chaum published a conference paper outlining an early form of
anonymous cryptographic electronic money. The cryptocurrency was invented by Satoshi Nakamoto
is the person who helped to develop first bitcoin software and introduced the concept of
cryptocurrency to the world 2008 paper. Nakamoto remained active in the creation of bitcoin
and the blockchain until about 2010 but has not been heard from since.

BITCOIN:

Bitcoin is one of the well known type of cryptocurrency. It is a digital currency that can be
traded for goods or services with vendors that accept bitcoin as a payment and it is also a
decentralized digital currency that you can buy, sell, and exchange directly without an
intermediary like bank. Bitcoin achieves elimination of intermediaries with the help of its
underlying technology, called blockchain. It works only through peer to peer internet networks
since it is a digital money. And one of the limitations in bitcoins is not many shops accept
Bitcoin yet and some countries have banned it altogether. In the absence of involvement of
intermediaries there will not be any transaction cost. So there will be a question that how
block chain technology eliminates the intermediaries? Here is my answer by replacing trust that
intermediaries bring to the table with cryptographic proof by the use of CPU computing power. This
cryptographic trust is built into Bitcoin through a wallet, a public key and a private key in the
program. Anyone can create a Bitcoin wallet for free by downloading the Bitcoin program. Each
wallet contains a public key and a private key. The public key is like an address or an account number
via which any person can receive Bitcoins. A private key is like a digital signature via which a person
can send Bitcoins. The name suggests that private keys should be only held and known by the owner
and public keys can be shared with anyone for receiving Bitcoins. But as evidenced by the fact that as
technology grows, so does its risk this too have a risk like sometimes there may be a loss due to
private key not accessible or stolen by the hackers. So the users must have security conscious when
they are using digital money. There is an important fact that you never believe The first reported
real-world financial transaction involving Bitcoin took place on May 22, 2010, when a
Florida man negotiated to pay 10,000 BTC for two Papa John's pizzas priced at about $25.
That transaction valued the price of one Bitcoin at roughly a fourth of a cent.

BITCOINS HELPS IN GROWING BUSINESS:

So after knowing what is bitcoin and how does it works everyones thought is to use it and
implement it in their own business so am here to explain how does bitcoin helps in growing
business there are three ways bitcoin helps you to grow your business Since Bitcoin has
emerged as a common currency that many businesses and individuals now use, there have
been efforts to develop software that will make it easier to access and use. Therefore, many
organizations and individuals have begun to get software developed so that they can take
advantage of the many benefits that are offered. There three important ways for making use
of bitcoins in business growth they are,

I. ENABLING OF TRANSACTIONS

One of the ways in which Bitcoin can help a business grow is by enabling transactions. With
Bitcoin, businesses have the ability to complete transactions and use currency with little to no
hassle. Transactions are completed more easily and can be executed more quickly with
Bitcoin. The four main ways in which Bitcoin can enable transactions more easily is by using
the internet of money, breaking through barriers, differing from the competition, and
improving the speed of payment processing.
A. Internet of money

Much like the internet was back in the early 1990’s, cryptocurrencies such as Bitcoin have
emerged as financial instruments that change the way people execute business transactions.
With Bitcoin, all payments and financial transactions can be executed through the Internet.
As a result, businesses can provide customers with a more efficient way to pay for products
and services. By taking advantage of an internet based financial system, businesses now offer
more convenience for customers who are looking to get the products and services they want.

B. Barrier Breakthrough

Bitcoin enables businesses to use algorithms that allow financial transactions to occur in real
time. The barrier breakthrough with Bitcoin now allows businesses to avoid dealing with the
complexity of traditional financial transactions on the internet as well as allowing global
access to cash exchanges. Businesses are therefore in a position to process payments from
customers all over the world. As a result, they are able to maximize their revenue and expand
to international territories.

C. Different from the competition

In the past, most financial transactions have had to be executed through a credit card or
similar payment method. While credit cards can make it more convenient to make and
process payments, they can also result in some problems. A credit card often needs to be
processed and a financial institution needs to review and approve the transaction. Bitcoin
differs from banking competition due to offering a market gateway rather than a transactional
token. With a decentralized system in place, Bitcoin allows businesses to complete
transactions and manage their funds without the obstacles involved in traditional payments.
All transactions don’t have to go through any credit clearances either.
D. Improved Payment Processing

When it comes to growing a business, Bitcoin is very beneficial because it drastically

improves the ability to process payments. While there are a number of financial services
companies that process payments with fees, Bitcoin can allow customers and businesses to
avoid paying high fees which can be quite costly. Bitcoin now allows a business to receive
payments for products sold and services rendered within a couple of seconds and allow
customers to get what they pay for very quickly. This allows businesses to accumulate the
revenues they need to fund operations and expand. The improved payment processing system
also allows a business to get more customers due to its ability to allow customers to complete
transactions more quickly.

II.BITCOIN WALLET APP

The second way is Like all other things associated with technology, Bitcoin has an app that
people and businesses can use. Recently, there has been the development of a wallet app.
This application allows businesses to more easily store the funds that they receive. There are
three main advantages of using a Bitcoin wallet app. These include safe and easy storage,
simple backup and making sure that errors are not made when completing transactions. With
a Bitcoin wallet app, businesses are able to easily store the funds that they receive from
selling products and providing services. Since Bitcoin transactions are internet based, it is
important to have a way to back up the data so it isn’t lost. The wallet app allows a business
to easily create a backup. As a result, this reduces the risk of losing important transaction data
and their funds. Using a Bitcoin wallet app also reduces errors and make it easier for
businesses to manage funds without making any miscalculations or losing important data
pertaining to a payment received. This is very beneficial when looking to manage payments
and funds from international customers.

III. CREATE YOUR OWN CRYPTOCURRENCY

Businesses are able to grow with Blockchain technology by creating their own
cryptocurrency. When creating a cryptocurrency, a business needs to be on the internet,
process payments online and receive revenues from digital sources. Businesses also need to
be active for at least two years. With the creation of cryptocurrency, businesses now have
more flexibility when it comes to managing revenue and allocating financial resources. When
a business creates its own cryptocurrency, it is in a position to grow due to the increased
confidence that it provides its customers. A business that uses Bitcoin is also able to provide
assurance to governments that it is both a legitimate enterprise and is using payment
processing technology that is compliant with all laws and regulations. Businesses are able to
provide this confidence and assurance by eliminating the risk of fraud, offering anonymity
with transactions and also providing security of its funds. In terms of growth, businesses are
able to capitalize on lower operation costs, receiving immediate transactions and providing
access to a new customer base.

CONCLUSION

Since businesses are now using Cryptocurrency-Bitcoin technology they will benefit by
working with a Bitcoin. Cryptocurrencies have been around for 12 years now, but they
haven’t reached their full potential yet. Some people still think that cryptocurrencies are a fad
and will eventually disappear, but they are still here and are gaining more and more
popularity every day. If you want to expand your business internationally or simply make it
more convenient for your customers to pay for your products and services, accepting
cryptocurrencies can be a great way of doing so.