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Bitcoin and US-China Trade Relationship Proposal

The modern world gives great attention to the evolution of international business. The fact is that the high pace of development of various ventures and a number of rivals has resulted in the perception of the need for a search for new markets and ways to realize a company’s potential. In addition, the stranglehold of digital devices and their dominant role in the modern world are contributing to the digitalization of this sphere and the adherence to the new methods to make deals and provide financing for numerous projects. Furthermore, the Internet provides many opportunities for agents to cooperate by using mediated communication patterns. The combination of these facts could not but precondition the appearance of a digital equivalent of money.

Even now we can observe the spread of bitcoins, a digital currency created in 2009 (Bitcoin, n.d.). The main idea that led to its creation was to offer the opportunity of lower transaction fees when compared with traditional online payment systems and to get rid of the impact of the most powerful financial institutions engaged in the given sphere (Broome, 2015). As a digital currency, bitcoins do not have any physical equivalents (Bjerg, 2015). They are just realized in public and private keys that might be used to obtain income. Statistics show that the level of interest toward the given currency remains stable and even increases (Broughton, 2016). That is why the given paper is devoted to a comprehensive analysis of the most important concerns related to the given issue. It is aimed at the acquisition of the most important and relevant data and critical analysis of the future of the given currency.

The fact is that modern trade relations between various states could also be exercised through the use of bitcoins. For instance, statistics show that bitcoin has become a multibillion-dollar project that has attracted the attention of the most powerful states and economies of the world (European Central Bank, 2015). In the United States, the given issue is attracting investments from Silicon Valley and Wall Street. However, it is a widely accepted fact that a certain number of Chinese companies have gained control of the bitcoin network (Elitzer & Rubin, 2014). This task was performed through wise investments and specific attention to the evolution of computer servers used to guarantee the efficient exchange of this currency. For this reason, the main bitcoin power is now concentrated in Beijing. This fact could not but attract U.S. attention, as this state also recognizes the role this innovative currency might play in the evolution of international trade.

For this reason, the research is devoted to the investigation of this important aspect of trade relations between America and China. It tries to explore the major concerns of this issue by conducting a comprehensive analysis of the mechanisms and practices that are used to establish trade relations between the United States and China. The paper rests on the assumptions by researchers who have attempted to determine the major concerns of the given topic. The work by Kiviat (2015) is used to provide a clear definition of bitcoins and analyze opportunities for the further rise of the popularity of this currency. Additionally, the paper also considers assumptions by Nakamoto (n.d.), Popper (2016), and Smart (2015), to highlight the most important aspects of the given question. Furthermore, the research provides the basis for the discussion of the possibility of the further utilization of this tool to stimulate international trade between countries and guarantee stable incomes.

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