Investment Banking Tutorials
- Investment Banking Free Course
- Investment Banking Basics
- What is Investment Banking? (Overview of what do they actually do!)
- Investment Banking Functions
- Investment Banking vs Commercial Banking
- Equity Research in an Investment Bank
- What is Asset Management Company AMC
- Sales and Trading in Investment Banking
- Private Placement, IPO and FPO in Investment Banking
- Investment Banking – Underwriters and Market Makers
- Investment Banking – Mergers and Acquisitions
- Investment Banking – Restructuring and Reorganisation
- Investment Banking Roles and Responsibilities
- Market Makers
- Propreitary Trading
- Deal Origination (Sourcing)
- Initial Public Offering (IPO)
- Publicly Traded Companies
- Top 4 Must Know Investment Banking Charts (Free Download Template included)
- Pitch Book | Guide to Investment Banking Pitch Book (Examples)
- What is LBO?
- Leverage buyout Lbo Analysis
- LBO Financing
- Trading Floor
- Market Order vs Limit Order
- Bid vs Ask
- Bid vs Offer Price
- Industry vs Sector
- Merchant Bank
- Best Investment Banking Books
- Nasdaq vs Dow Jones
- Nasdaq vs Nyse
- Differences Between NSE and BSE
- Investment Banking Careers
- Investment Banking Interview Questions (with Answers)
- How to get into Investment Banking?
- Investment Banking Analyst
- Investment Banking Job Description
- Investment Banking Division (IBD)
- Investment Banking Associate Salary
- Analyst vs Associate
- Investment Banking Job For Graduates (Engineers) | Top 8 Tips
- How to get an Investment Banking Internship?
- Top 10 Finance Certifications Programs
- Investment Banking Lifestyle
- Investment Banking Exit Opportunities
- Investment Banking Case Studies
- Top 10 Best Finance courses (with Online Certification)
- Investor Relation Job Description
- Financial Analyst Job Description
- Investment Banking vs Equity Research
- Investment Banking vs Asset Management
- Commercial Banking vs Merchant Banking
- Investment Banking vs Corporate Banking
- Portfolio Management vs Investment Banking
- Investment Banking vs Hedge Fund Manager
- Investment Banking vs Investment Management
- Investment Banking vs Private Equity
- Careers in Trading
- Investment Banking Firms
- Top Bulge Bracket Investment Banks
- Top Middle Market Investment Banks
- Top Boutique Investment Banks
- Investment Banking in Dubai
- Investment Banking In Nigeria
- Investment Banking in Abu Dhabi
- Investment Banking in Hong Kong
- Investment Banking in Russia
- Investment Banking in Brazil
- Investment Banking in China
- Investment Banking in Australia
- Investment Banking in Saudi Arabia
- Investment Banking in Singapore
- Investment Banking in London (UK)
- Investment Banking in India
- Investment Banking in Ireland
- Investment Banking in South Africa
- Investment Banking in Canada
- Investment Banking in Germany
- Investment Banking in France
- Investment Banking in Malaysia
- Investment Banking in Philippines
- Investment Banking in Boston
- Investment Banking in San Francisco
- Investment Banking in Chicago
- Investment Banking in Atlanta
- Investment Banking in Toronto
- Top Banks
- Top Banks in Australia
- Top Banks In Austria
- Top Banks In Bahrain
- Top Banks In Belgium
- Top Banks In Bermuda
- Top Banks In British Virgin Islands
- Top Banks In Brunei
- Top Banks In Canada
- Top Banks In Cayman Islands
- Top Banks In Denmark
- Top Banks In Finland
- Top Banks In France
- Top Banks In Germany
- Top Banks In Greenland
- Top Banks In Guernsey
- Top Banks In Ireland
- Top Banks In Isle of Man
- Top Banks In Japan
- Top Banks In Kuwait
- Top Banks In Liechtenstein
- Top Banks In Luxembourg
- Top Banks In Macau
- Top Banks In Norway
- Top Banks In Oman
- Top Banks in Pakistan
- Top Banks in Philippines
- Top Banks In Puerto Rico
- Top Banks In Qatar
- Top Banks In Saudi Arabia
- Banks in South Africa
- Top Banks In Singapore
- Top Banks In South Korea
- Top Banks In Sweden
- Top Banks In Switzerland
- Top Banks in UAE
- Top Banks in United Kingdom
- Top Banks in USA
- Banks in Nigeria
- Top 10 Banks in Netherlands
- Mergers and Acquisitions
- What is Mergers and Acquisitions?
- Mergers vs Acquisitions
- Horizontal Merger
- Vertical Merger
- Synergy in M&A
- Successful Mergers and Acquisitions
- Financing Acquisitions
- Acquisition Premium (Takeover)
- Statutory Merger
- Joint Venture
- White Knight
- Hostile Takeover
- Golden Parachute
- Poison Pills
- Killer Bees Defense Strategy
- Show Stopper in M&A
- What is Amalgamation?
- Spin off vs Split Off
- Forward Integration
- Backward Integration
- Horizontal vs Vertical Integration
- What is Divesting / Divestiture?
- Bootstrap Effect
- PAC MAN Defense
- Flip-In Poison Pill
- Flip-Over Poison Pill
- Scorched Earth Defense Policy
- Tender Offer
- Friendly Takeover
- Amalgamation vs Merger
- Lobster Trap Defense
- Asset Purchase vs Stock Purchase
- Joint Venture vs Strategic Alliance
- Greenshoe Option
- Dawn Raid Takeovers
- Crown Jewels Defense
- Best Mergers and Acquisitions Books
- What is Asset Restructuring?
- Cryptocurrency Basics
- Bitcoins | Advantages and Disadvantages of Bitcoin Technology
- Cryptocurrency | Top 5 Cryptocurrency You Must Know!
- Bitcoin vs Ethereum | Top 6 Differences You Must Know (Infographics)
- Ethereum vs Litecoin
- Ripple vs Stellar
- Bitcoin vs Cryptocurrency
- Bitcoin vs Blockchain
- Ripple vs Litecoin
- Bitcoin vs Litecoin
- Ethereum vs Ethereum Classic
Let’s get started with some of the main advantages and disadvantages of Bitcoin Technology.
What is Bitcoin?
In the year 2008, the world had been going through a great financial crash. Banks and Government system of money weren’t working and people were asking various questions about the system.
Amid such tumultuous atmosphere, on 18th August 2008, a domain name, ‘www.bitcoin.org’ was registered. Till now no-one could find out who registered the domain name. After two weeks, an individual (or a group of people) named Satoshi Nakamoto published a 9-page document. In that document, Nakamoto introduced ‘bitcoin’, a peer-to-peer electronic cash system.
No-one paid heed to Nakamoto since people were dealing with the unprecedented crash in the stock market. Moreover, people didn’t think that kind of system would scale.
A few months later, on 3rd January 2009, the first ever 50 bitcoins were released. And that was the beginning of a new form of money, the money that could change the way we look at the economy of the world.
How do Bitcoins work?
The best part of bitcoins is there’s no third party in this system. Every transaction through bitcoin happens only between users, without any intermediary.
The reward that is given for using bitcoins is called mining. In February 2015, it was found that around 100,000 businesses approved and accepted bitcoins as the mode of payment.
Other than using bitcoin in lieu of services, products, and currencies, you can use bitcoins as investments as well.
As per the research of Cambridge University in 2017, around 2.9 to 5.8 million users of bitcoins were reported.
How do you buy a bitcoin?
- First step: To be able to purchase a bitcoin, first you need to install a “virtual wallet” onto your smart device – your mobile phone or your laptop. This wallet is the software that helps you track all of your transactions and balance.
- Second step: To buy it, you should be ready to spend real money. You can deposit the money through an online payment gateway. Or you can transfer it directly from the bank to the account of a third party website that connects bitcoin buyers and sellers.
- Third step: Once the payment is done, you would be able to order bitcoins from the website. Treat it just like buying stocks. The way you would buy stocks by transferring the required amount, you would need to buy bitcoins in a similar fashion. In the case of bitcoin, you would use an exchange like “bitstamp” for placing your order.
- Fourth step: This is not the next step, but is an alternative way. If you feel that the above steps are cumbersome, you may choose to use a third-party host like “bitinstant” which cuts the effort into half and sends bitcoins directly into your “virtual wallet”.
Practical uses of Bitcoins Technology
From the above, bitcoins may seem an alien concept. But it is not. It has many practical uses and applications and it can be used beyond just monetary transactions. This will help the individual as well as society –
- By using this technology, a permanent and unchangeable public record can be created. This will help reduce forgery and frauds.
- By applying this technology, you would be able to create business contracts. These business contracts can be used as evidence that the agreements were made prior.
- By using this technology, one can create their will. If that is being done, there would be no dispute regarding a will of a deceased person. As a result, after the death of the individual, the right people will get the inheritance.
- By using the same technology, national voting records can be built and maintained. As a result, nobody would be able to tamper with it. If any tampering is done by anyone, it would be immediately caught.
These practical uses can be implemented if the majority of the population realizes the value of bitcoin technology and starts to embrace its magnificence.
Advantages of Bitcoin Technology (in monetary transactions)
There are many advantages of bitcoin technology which our usual banking system couldn’t provide us till now. Here are the topmost advantages of Bitcoin –
- Hidden identity: One of the biggest advantage of Bitcoin technology is securities against cyber-theft is the ability to keep oneself under camouflage. With bitcoin technology, you would be able to keep your identity hidden. Since transactions or accounts under bitcoin technology have nothing to do with real world identities, one can only analyse the flow of the transaction. It wouldn’t be possible to find the real world identities of anybody. You would receive or send bitcoins to addresses that are just the chains of 30 characters.
- No gatekeepers: To use the banking system, you have many gatekeepers who would prevent you from making the transaction. Under bitcoin technology, you would have to take responsibility on your own. There would be no gatekeepers and anybody with the open software can receive or send bitcoins.
- More secured: Another advantage of bitcoin technology is that It’s almost impossible to hack your account under bitcoin. Bitcoin funds are securely locked under cryptography system. If you’re the owner of a private key, only you can send crypto-currency i.e. bitcoins. Since it is made by using solid cryptography and huge numbers, it’s impossible to hack the address.
- Swift and global: One more advantage of bitcoin technology is that it is superfast. Once the transaction is initiated, it is propagated instantly to the global network; and the transaction would be confirmed within couple of minutes. And since it is done with a wide global network, physical location of the owner doesn’t count. You can send bitcoins to your relatives nearby or to a friend abroad using this technology. So these are some of the main advantages of Bitcoin technology.
Disadvantages of Bitcoin Technology
- The only possible disadvantage of bitcoin technology is that every transaction is irreversible. Once the transaction is initiated, it’s done. No-one can reverse this transaction.
- In usual banking system, a safety net is there in case of critical transactions. Under bitcoin technology, there’s no safety net. If you send your funds to a scammer, your scammer will have the money.
- That’s why, it’s important to first confirm whom you’re sending your funds to. You need to be more responsible in sending funds under bitcoin.
You may also take a look at this article – Top 10 Best Bitcoin Books of All Time
This has been a guide to Bitcoin. Here we discuss how it works, practical uses and also the advantages and disadvantages of Bitcoin Technology. To learn more about Investments, you may refer to the following articles –