Business Driven Information Systems
5th Edition
ISBN: 9780073402987
Author: Paige Baltzan Instructor, Amy Phillips Professor
Publisher: McGraw-Hill Education
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Question
Chapter 3, Problem 1OCQ
To determine
If the Bitcoin is a form of disruptive or sustaining technology.
Expert Solution & Answer
Answer to Problem 1OCQ
Solution:
Bitcoin is a form of disruptive technology as it is ruining the business of the current banking and financial institutions.
Explanation of Solution
Given:
A technology named Bitcoin.
Disruptive innovation is another method for accomplishing something that at first does not address the issues of existing clients. This sort of innovation tends to open new markets and devastate the old ones. While, a sustaining innovation delivers an enhanced item that clients are excited to purchase.
Bitcoin is a digital cryptocurrency, precisely it is a form of e-cash. It is the first ever invented digital currency which does not have any principal controller. The system is basically programmed to function without the need of a central bank. Bitcoins are sent among delegates on a shared network (peer to peer) which is dedicated bitcoin network, without the requirement of any delegate. Although a witness (miner) is required to dictate the transaction to server. So that the transaction can be recorded in ledger.
In case of currency transactions intermediaries are bank and other financial institution. So undisputedly Bitcoin is a direct threat to the current banking systems as they are losing their market, as the current peer to peer transaction is more than one trillion. Also the peer to peer transaction is very harmful for national financial condition as it can be used for criminal activities and other national threats. Bitcoin has additionally been condemned for its unlawful exchanges, it high power utilization, prize instability and burglaries from trades.
Hence, Bitcoin is a direct threat to the market and current banking system and financial institutions as well. So it can be said that it is a form of disruptive technology.
Conclusion:
Bitcoin is a form of cryptocurrency that is ruining the opportunities of current banking systems and financial institutions. Also it has been criticized for high electricity consumptions, theft from exchanges, prize volatility. Hence, the Bitcoin is a form of disruptive technology.
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Chapter 3 Solutions
Business Driven Information Systems
Ch. 3 - Prob. 1OCQCh. 3 - Prob. 2OCQCh. 3 - Prob. 3OCQCh. 3 - Prob. 4OCQCh. 3 - Prob. 5OCQCh. 3 - Prob. 6OCQCh. 3 - Prob. 1RQCh. 3 - Prob. 2RQCh. 3 - Prob. 3RQCh. 3 - Prob. 4RQ
Ch. 3 - Prob. 5RQCh. 3 - Prob. 6RQCh. 3 - Prob. 7RQCh. 3 - Prob. 8RQCh. 3 - Prob. 9RQCh. 3 - Prob. 10RQCh. 3 - Prob. 11RQCh. 3 - Prob. 12RQCh. 3 - Prob. 13RQCh. 3 - Prob. 14RQCh. 3 - Prob. 15RQCh. 3 - Prob. 1CCOCh. 3 - Prob. 2CCOCh. 3 - Prob. 3CCOCh. 3 - Prob. 4CCOCh. 3 - Prob. 5CCOCh. 3 - Prob. 6CCOCh. 3 - Prob. 1CCTCh. 3 - Prob. 2CCTCh. 3 - Prob. 3CCTCh. 3 - Prob. 4CCTCh. 3 - Prob. 5CCTCh. 3 - Prob. 6CCTCh. 3 - Prob. 1CBTCh. 3 - Prob. 2CBTCh. 3 - Prob. 3CBTCh. 3 - Prob. 4CBTCh. 3 - Prob. 5CBTCh. 3 - Prob. 6CBTCh. 3 - Prob. 7CBTCh. 3 - Prob. 8CBTCh. 3 - Prob. 9CBTCh. 3 - Prob. 10CBTCh. 3 - Prob. 1ECCh. 3 - Prob. 2ECCh. 3 - Prob. 3ECCh. 3 - Prob. PIAYKBPCh. 3 - Prob. PIIAYKBPCh. 3 - Prob. PIIIAYKBPCh. 3 - Prob. PIVAYKBPCh. 3 - Prob. PVAYKBPCh. 3 - Prob. PVIAYKBPCh. 3 - Prob. PVIIAYKBPCh. 3 - Prob. PVIIIAYKBPCh. 3 - Prob. PIXAYKBP
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