Blockchain and Bitcoin: The Revolution of the Financial Industry
Blockchain and Bitcoin: The Revolution of the Financial Industry

Summary/Abstract: Bitcoin is a technology operating without a central authority. The management of the transaction and the creation of bitcoins constitute an assumption of responsibility collectively by the network. Bitcoin is free and open. Its design is public, nobody has nor controls this type of currency and any individual can purchase it. Thanks to several of its single properties, Bitcoin entails promising uses, which are not presently covered by the systems of classic payments. The digital currency bitcoin primarily relies on a type of technology referred to as blockchain and has several implications for the economy and corporations. Bitcoins are used everywhere in the world and can serve as a tool of decentralization and freedom. There is a significant number of companies and individuals who use Bitcoin, with certain organizations currently accepting it as a method of payment. Although Bitcoin remains a relatively new phenomenon, it has experienced a rapid growth. At the end of August 2017, the value of all the bitcoins in circulation exceeded 16.5 million bitcoin with millions of dollars exchanged daily in bitcoins (market cap 77 billion dollar). This paper will provide a brief outline of this subject, along with essential information on Blockchain and bitcoin. After providing a definition of the latter two, we will present their impact on the financial industry, and finally we will evaluate the function of the stock of value on the calculation of the volatility of the bitcoin by reporting it to gold and the EUR/USD parity.

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