Bitcoin: it's concept, characteristics and impact on trade and global economy

Abstract

Bitcoin is one of the most important developments in Blockchain technology, as this currency has become the main regulator of the virtual currency of Bitcoin, it is a currency that has no physical presence and is traded in the Internet. It is an important phenomenon for the economy and electronic commerce in many aspects, such as the conclusion of electronic contracts and financing, during which payments are made at low costs, but there is a danger associated with dealing with it at the level of national economic security, especially when there is no organized legislation to deal with it in order to monitor dealing with it. Therefore, there are realistic threats to dealing with Bitcoin because it is not under the control or oversight of central banks and official agencies. The most important of these threats are money laundering and terrorist financing operations, in addition to the tax difficulties due to the difficulty of monitoring its dealers It helps smuggle money abroad and thus harm the national economy, as the ambiguity and secrecy regard the dealing with the bitcoin currency and the instability of its value are source of concern for its use, which explains that there are several difficulties encountered when trading it, which has economic, financial and technical consequences.