Future Insurance currency, Bitcion price today, BTC to USD technology News - News broadcast about finance business real estate loan insurance and forex trading crypto markets

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Wednesday, April 4, 2018

Future Insurance currency, Bitcion price today, BTC to USD technology News

Introduction New world insurance currency

The one thing that's missing but it is a reliable e-cash, a method that allows you to transfer funds from A to B without a knowing B or B knowing I can take a $ 20 bill and hand it over to you and then there's no record or where it came from.

Was e cash still science fiction in 1999 now it is reality. 15 years later there is a lot to do internationally around the Bitcoin. This e-cash in the vision of the famous economist Milton Friedman quoted above keeps the emotions busy. 

But while there are currently around 12 million Bitcoins in circulation and the price fluctuates between $ 100 and $ 1,200, the legal basis and it will also use in Real Estate marketing in future payment  and he Bitcoin is not easy to find. On the informative website of Bitcoin.org, layman's terms explain how the acquisition and trading of Bitcoins actually works. The question why Bitcoin works in this way and whether and if so how this can be changed is hardly asked.

Furthermore, the website refers to the White Paper of 'Satoshi Nakamoto' from 2008, which underlies the Bitcoin.However, there is no document available in which data subjects submit to that White Paper. In the international literature on Bitcoins too, the question about Bitcoin's civil law base is almost entirely ignored. Given the size of the trade, that is surprising.

The Bitcoin brings with it the necessary risks for consumers and entrepreneurs. At the moment there is no government supervision. 

We wonder

 (i) what is the core economic function of the Bitcoin
 (ii) how the Bitcoin can be qualified in private law and whether private law is possible the Bitcoin as money, means to pay a sum of money to see the meaning of contract law and
(iii) whether Bitcoin insurance is possible, with which consumers and businesses can hedge against the risks of a possible loss of trust in Bitcoin and other risks. Is not such an innovative product an excellent opportunity for the financial sector to show that they put customer interest first? We try to answer this and other questions in this contribution.

Virtually unspent money Question?

What exactly is the economic functionality of the Bitcoin at the core?
Does it look like a virtual currency?
Or is it more like a virtual investment object, on the 'digital gold' of the 21st century internet society?

According currency

According to Graeber, a currency is nothing other than an anonymous, transferable, debt, expressed in a generally accepted unit of account in which a community of people has confidence.

An a typical example of such a 'currency' is the stone type, fei, which functioned as a widely accepted currency in the 19th century on a small island with an isolated population.

These were big thick heavy round stones. The population 'paid' back and forth for goods and services. It was remarkable that even a very large fei stone which was therefore worth a lot was still used as exchange currency at the bottom of the sea.

The stone lying on the bottom of the sea since a boat from a previous owner of the stone had sunk simply swapped in exchange for goods or services from owner, but remained at the bottom of the sea.

Apparently this was no reason for the local population to have no confidence in that stone anymore, or to refuse the sunken stone as a means of payment.

These fei stones came from a quarry on the island. It goes without saying that this simple monetary economy did not have a central bank or regulator, while the fei functioned as a means of payment. The system existed by the trust that the community had in it. It functioned for hundreds of years to satisfaction.

In the first chapter of his book, Martin shows in the Irish banking sector that at the end of the 20th century nothing much has changed in a developed economy. For more than half a year, all Irish banks had been closed due to a strike by all employees in the banking sector, so that non-cash bookings were not processed, but cash and checks gradually disappeared from the circulation. The result was that society fell back on a system of private debt registration, expressed in the unit of account of the Irish pound.

Quickly e money

Bearing these two examples in mind, a comparison of the Bitcoin with e-money is made quickly. Provided a society has confidence and trusts the Bitcoin as a unit of account to settle mutual debts, it could function as virtual e currency.

But an important difference with the 19th century island and 20th century Ireland is that, in the case of the Bitcoin, the geographical scope is not limited to an island, but is worldwide. On the other hand, at the moment mainly 'techies' from the IT sector, criminals and money launderers seem to use the Bitcoin So that to some extent there are communities of like-minded people and any confidence that these parties have in the Bitcoin. The question is whether this will change when the diversity of the group increases in combination with price fluctuations which are inevitable for a single value determined by supply and demand.

Important difference of the Bitcoin

This shows an important difference of the Bitcoin with regular currencies. A currency has an intrinsic economic link with the corresponding real economy, because the valuation of the currency corresponds to the added value in economic-capitalist society. This link is missing from the Bitcoin. This is an important macroeconomic difference with regular currencies in a monetary economy. If you double the currency amount as issuing central bank, the prices of goods and services will in principle halve and vice versa. This allows the central bank to exert influence through its interest rates on inflation and deflation of the real economy. For the Bitcoin this is different because a maximum number of coins is issued, at least according to publications published there. Assuming that this maximization can not be affected, there is no control on quantity by a central issuing and macro economic supervisory institution.

On the other hand mining industries as bitcoin or other ctypto and Bitcoins seems to be limited per unit of time and in an absurd sense. This could of course also be a strong point of the Bitcoin, especially in economies where there is a central bank, which with its policy creates high inflation, as is currently the case in Argentina. 

Argentineans may therefore be inclined to convert their Argentine currencies, which they intend to save or postpone, into in comparison with the Argentine currency the local economy independent Bitcoins. The same applies to areas where you have to pay high commissions for currency conversion as dollars or euros to local currencies, such as in Afghanistan. Soldiers from the West can in certain cases pay the most easily with Bitcoins.

The European Central Bank has started a research on virtual money, such as the Bitcoin. In its report 'Virtual currency schemes' it notes that Bitcoin currently has a very limited impact on price stability within the euro zone.

This may change if the total size of Bitcoins would increase in value and is replaced by current euro users for a significant part to provide as exchange and calculation means to settle transactions in goods and services.

In this, the ECB categorises the Bitcoin de facto from an economic functional point of view, as an unregulated digital currency, which is accepted by a specific community. In addition to a risk to price stability, according to the ECB, the Bitcoin could also pose a risk to the payment system and due to reputational risks associated with the highly volatile price also for the financial system as a whole. These risks would be much more limited if a virtual currency could only be used for virtual digital goods and services, such as in the case of 'Second Life' with the Linden Dollars.

The Bitcoin is compared to an investment object or a financial instrument. Because Bitcoins' value has no link to the real economy, nor is it influenced by an issuing institution, supply and demand are the determining factors. Bitcoin exchanges are issued at any time for the Bitcoin via Bitcoin exchanges. This is reminiscent of listed financial instruments such as shares and bonds, commodity futures contracts or other derivatives. We all know that in the 17th century in a similar way in tulip bulbs was acted. The main difference is that if the question collapses completely, you would at least still have tulip bulbs left over where you could now stay with a quantity of "nulls and ones" registered on the internet.

A specific investment object is gold. A precious metal that has functioned for centuries as the currency as a means of payment and exchange, and a unit of account to settle goods and services transactions in trade. The Bitcoin can be compared to a kind of virtual gold. The quantity to be mined of gold is limited worldwide, as is the quantity of Bitcoins to mine. The value is determined by supply and demand through scholarships. The difference is that gold still has special metal properties and therefore has technological applications where the Bitcoin is materially less valuable than a tulip bulb.

Legal aspects of the Bitcoin

Bitcoin is legally not a currency within the meaning of the Wft and therefore also not a legal tender. There is no question of an 'issuing institution' or of a claim on an issuing institution.In Europe and USA public law the Bitcoin is not yet qualified as a supervised instrument. 

The Minister notes

The Bitcoin is not otherwise a financial product within the meaning of the law. Mediation in buying and selling is not a financial service either. This brings us to the question: 'how can the Bitcoin then qualify in private law? And is it possible under private law to view the Bitcoin as money, the means to pay a sum of money in the sense of contract law?

Goods law

Some further study yields the following impressions. Bitcoin is an open-source software program, set up under license to the Massachusetts Institute of Technology model. In short, this means that everyone is free to use the software, to copy it and to adjust it at its own discretion, while the author of the software accepts no liability. The Bitcoin software works as follows.

There is a long series of numbers and letters based on an algorithm. In this series certain number letter blocks can be distinguished. When someone finds such a block after intensive calculations then Bitcoins are assigned to it by the program. The software program determines how many digital coins are allocated per block and how the digital coins can be transferred to others. The software program also determines that a maximum of approximately 21 million digital coins can be obtained through mining. After that, according to various publications no new digital coins are issued anymore.

That is remarkable and perhaps worrying. If, in fact, changes are made to the software, this may have consequences for, among other things, the number of Bitcoins in circulation and therefore the value in traffic. According to some publications, such changes can not have retroactive effect. We can not assess whether retroactive changes are actually impossible. We have not found such a legal limitation of the change options.

The digital coins are interchangeable. They are traded at identical value and thus have the character of commodities. This does not detract from the fact that every coin is individualizable, because they consist of unique codes. In summary the digital coins, the Bitcoins, individualisable pieces of software that have been assigned or transferred to someone according to the software program and to which value is assigned in society.

As indicated, these are not claim rights. We believe that Bitcoins should be regarded as a property right under foreign law. They are property rights as referred to in art. 3: 6 Civil Code. After all, the software programs that belong to persons belong on the basis of the software program and which are transferable according to the same program and which are intended to provide the beneficiary material benefit or have been obtained in exchange for material benefit.

These property rights are governed by foreign law. The software program is, after all, published in the United States under an open-source license according to the model of MIT.

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