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Because cryptocurrency exists only online, there are important differences between cryptocurrency and traditional currency, like U. Cryptocurrency accounts are not backed by a government. Cryptocurrency held in accounts is not insured by a government like U. If something happens to your account or cryptocurrency funds ‘ for example, the company that provides storage for your wallet goes out of business or is hacked ‘ the government has no obligation to step in and help get your money back. Cryptocurrency values change constantly. The value of a cryptocurrency can change rapidly, even changing by the hour. And the amount of the change can be significant. It depends on many factors, including supply and demand. Cryptocurrencies tend to be more volatile than more traditional investments, such as stocks and bonds. An investment that’s worth thousands of dollars today might be worth only hundreds tomorrow. And, if the value goes down, there’s no guarantee it will go up again. There are many ways that paying with cryptocurrency is different from paying with a credit card or other traditional payment methods. Cryptocurrency payments do not come with legal protections. Credit cards and debit cards have legal protections if something goes wrong, online casino japan. For example, if you need to dispute a purchase , your credit card company has a process to help you get your money back. The transfer of currency from one wallet to another is simply an exchange of digital bits without involving paper, coins, credit or debit cards, bank accounts, security accounts and no collateral. In addition, bitcoins rely on dedicated rigs of personal computers, mining for new coins through a series of tasks that require considerable computational power. Presently, although bitcoin is considered a currency that could overcome limits of the fiat money, there are some issues related to its sustainability. First, a precise definition of the sustainability of bitcoins is needed. We must consider that bitcoins are entities living in a different ecological ecosystem: the digital ecosystem. A digital ecosystem consists of all hardware devices, program files, and data files that the user needs and it shares with other users. The ecosystem as defined also includes the social elements which led to the creation and use of digital elements like bitcoins as no-material technological objects [4]. The digital resources we mentioned are more properly defined as ‘digital artifacts’, ‘entities that consist of strings of 0 and 1, which can be interpreted by technical devices, like computers, to provide some meaning’ [5]. As bitcoins have an economic value it can be considered a ‘digital good’ in which the computing capacity defines both the scarcity of the good and the raising of its economic value [6]. Indeed, bitcoin’s increasing value is due to its rocketing popularity in recent years. Consequently, the economic value of bitcoin in May 2017 had reached even more than 5000 United States dollars (USD) [7]. The economic standpoint relies on the ingenious mechanism of transaction in which there is not a third party which guarantees an exchange but the transaction happens directly between the exchangers and the system provides a cryptographic proof of the transaction. Moreover, bitcoin creation is not indefinite as the number of bitcoins is limited to a definite number, generating an inflation due to currency scarcity and making it a store of intrinsic value as gold and silver. At the present day about 25 new bitcoins are generated every ten minutes, and that number will progressively be halved every four years [8], online casino japan. Bitcoin mining is increasingly difficult requiring both more people or PCs and complex algorithms: at the present only the most powerful computational networks, with several central processing units working together, are able to create additional coins.
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