Rank: Member Joined: 12/30/2012 Posts: 545 Location: NBI
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Federal Reserve - Bitcoin: Technical Background and Data Analysisview the full report
here http://www.federalreserv.../2014104pap.pdf?p=cite_@inthepixels Highlights from the documentOur estimates suggest that the number of daily users has doubled every eight months.
As of October 7, 2014 more than 64,000 businesses were reported to accept payments in bitcoins around the world, and the exchange rate was more than U.S.$300 to the bitcoin, which is more than 50 times higher than 24 months earlier.
As the diagram suggests, the entities transact directly, that is, in contrast to most traditional payment systems where various parties, such as banks, processors, and networks, sit between the payor and payee, there is no designated intermediary in Bitcoin.
Because the rate of making transaction records is stable over time, there is some certainty about the rate of growth of bitcoins (hence the amount of bitcoins in circulation).
Moreover, because the rate of growth of bitcoins is set to decrease exponentially, the total amount of bitcoins is bounded at 21 million and the bound is expected to be reached in 2140.
Decentralized systems such as Bitcoin replace third party intermediaries and the records kept by them with the public ledger maintained by a distributed information system.
It appears that, accounting for the large mean growth of bitcoin value, the risk associated with holding bitcoins for very short periods of time has remained relatively stable. Notably, however, the disruptions in the normalized exchange rate volatility are of substantial magnitude and appear difficult to explain or to predict.BITCOIN TRADERS KENYA Whatsapp group +254 705 299 429
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