G. H.
Bhakta Management Academy,
Department of Business and Industrial Management
Veer Narmad South Gujarat University
Assignment Topic: Crypto Currency
Section: A
Submitted to: Dr. Janki Mistry
Subject: Investment Management
Semester: 3
Submitted By:
Name SPID
Jain Bhakti 2021070103
Jariwala Hetvi 2021070105
Jariwala Tapan 2021070106
Lulla Simran 2021070119
Motani Shifani 2021070123
INDEX
Chapter Contents Page no.
No
1 INTRODUCTION 1-6
1.1 History 1
1.2 Architecture 2
2 Definition 7
3 Economics 8-11
3.1 Block rewards 8
3.2 Transaction fees 8
3.3 Exchanges 9
3.4 Atomic swaps 9
3.5 ATMs. 9
3.6 Initial coin offerings 9
3.7 Price trends 10
3.8 Volatility 10
3.9 Databases 11
4 Legality 12
5 Increasing regulations 13-15
5.1. United States 14
5.2. China 14
5.3. India 14
6 Criticism 16
7 Social trend 17
8 Advantages and Disadvantage 18-21
8.1. Advantage 18
8.2. Disadvantage 20
9 References 22
LIST OF FIGURES
Sr. No. Particulars Page No.
1.1. Bitcoin 1
1.2. Crypto Mining 4
1.3. Crypto wallet 5
3.1. Crypto ATM 9
3.2. Database 11
5.1. Crypto Currency in India 14
1. INTRODUCTION
Figure 1.1. Bitcoin
1.1. History
The paper was first published in an MIT mailing list and later in 1997 in The
American Law Review.
In the 1997 book The Sovereign Individual, the authors, William Rees-Mogg and
James Dale Davidson, predict that the currency used in the information age would be
using "mathematical algorithms that have no physical existence", which has led some
in the cryptocurrency community to call the book's claim a "prophecy".
In 1998, Wei Dai described "b-money", an anonymous, distributed electronic cash
system. Like Bitcoin and other cryptocurrencies that would follow it, bit gold (not to
be confused with the later gold-based exchange Bit Gold) was described as an
electronic currency system which required users to complete a proof of work function
with solutions being cryptographically put together and published.
In January 2009, Bitcoin was created by pseudonymous developer Satoshi
Nakamoto. Its final report was published in 2018, and it issued a consultation on
crypto assets and stable coins in January 2021.
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In June 2021, El Salvador became the first country to accept Bitcoin as legal tender,
after the Legislative Assembly had voted 62–22 to pass a bill submitted by President
Nayib Bukele classifying the cryptocurrency as such.
In August 2021, Cuba followed with Resolution 215 to recognize and regulate
cryptocurrencies such as Bitcoin.
In September 2021, the government of China, the single largest market for
cryptocurrency, declared all cryptocurrency transactions illegal. This completed a
crackdown on cryptocurrency that had previously banned the operation of
intermediaries and miners within China.
On 15 September 2022, the world second largest cryptocurrency at that time,
Ethereum transitioned its consensus mechanism from proof-of-work (PoW) to proof-
of-stake (PoS) in an upgrade process known as "the Merge".
1.2. Architecture
Cryptocurrency is produced by an entire cryptocurrency system collectively, at a rate
which is defined when the system is created and which is publicly stated. In
centralized banking and economic systems such as the US Federal Reserve System,
corporate boards or governments control the supply of currency. In the case of
cryptocurrency, companies or governments cannot produce new units, and have not
so far provided backing for other firms, banks or corporate entities which hold asset
value measured in it. The underlying technical system upon which cryptocurrencies
are based was created by Satoshi Nakamoto.
Within a proof-of-work system such as Bitcoin, the safety, integrity and balance of
ledgers is maintained by a community of mutually distrustful parties referred to as
miners. In a proof-of-stake blockchain, transactions are validated by holders of the
associated cryptocurrency, sometimes grouped together in stake pools.
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Most cryptocurrencies are designed to gradually decrease the production of that
currency, placing a cap on the total amount of that currency that will ever be in
circulation.
1.2.1. Blockchain:
The validity of each cryptocurrency's coins is provided by a blockchain. A blockchain
is a continuously growing list of records, called blocks, which are linked and secured
using cryptography. Each block typically contains a hash pointer as a link to a
previous block, a timestamp and transaction data. For use as a distributed ledger, a
blockchain is typically managed by a peer-to-peer network collectively adhering to a
protocol for validating new blocks. Once recorded, the data in any given block cannot
be altered retroactively without the alteration of all subsequent blocks, which requires
collusion of the network majority.
Blockchains are secure by design and are an example of a distributed computing
system with high Byzantine fault tolerance.
1.2.2. Nodes:
When a transaction is made the node creating the transaction broadcasts details of the
transaction using encryption to other nodes throughout the node network so that the
transaction (and every other transaction) is known.
Node owners are either volunteers, those hosted by the organization or body
responsible for developing the cryptocurrency blockchain network technology, or
those who are enticed to host a node to receive rewards from hosting the node network
1.2.2.1. Timestamping:
Cryptocurrencies use various timestamping schemes to "prove" the validity of
transactions added to the blockchain ledger without the need for a trusted third
party.
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The first timestamping scheme invented was the proof-of-work scheme. The
most widely used proof-of-work schemes are based on SHA-256 and scrypt.
Some other hashing algorithms that are used for proof-of-work include
CryptoNight, Blake, SHA-3, and X11.
Another method is called the proof-of-stake scheme. Some cryptocurrencies use a
combined proof-of-work and proof-of-stake scheme.
1.2.3. Mining:
Figure 1.2. Crypto Mining
On a blockchain, mining is the validation of transactions. This arms race for cheaper-
yet-efficient machines has existed since Bitcoin was introduced in 2009.
With more people venturing into the world of virtual currency, generating hashes for
validation has become more complex over time, forcing miners to invest increasingly
large sums of money to improve computing performance. By July 2019, Bitcoin's
electricity consumption was estimated to be approximately 7 gigawatts, around 0.2%
of the global total, or equivalent to the energy consumed nationally by Switzerland.
Some miners pool resources, sharing their processing power over a network to split
the reward equally, according to the amount of work they contributed to the
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probability of finding a block. A "share" is awarded to members of the mining pool
who present a valid partial proof-of-work.
As of February 2018, the Chinese Government has halted trading of virtual currency,
banned initial coin offerings and shut down mining. According to a February 2018
report from Fortune, Iceland has become a haven for cryptocurrency miners in part
because of its cheap electricity.
In March 2018, the city of Plattsburgh, New York put an 18-month moratorium on
all cryptocurrency mining in an effort to preserve natural resources and the "character
and direction" of the city.
1.2.3.1. GPU price rise:
An increase in cryptocurrency mining increased the demand for graphics cards
(GPU) in 2017. Popular favorites of cryptocurrency miners such as Nvidia's
GTX 1060 and GTX 1070 graphics cards, as well as AMD's RX 570 and RX
580 GPUs, doubled or tripled in price – or were out of stock. Miners regularly
buy up the entire stock of new GPU's as soon as they are available.
Nvidia has asked retailers to do what they can when it comes to selling GPUs
to gamers instead of miners.
1.2.4. Wallets:
Figure 1.3. Crypto Wallet
A cryptocurrency wallet is a means of storing the public and private "keys" (address)
or seed which can be used to receive or spend the cryptocurrency. These methods
range from using paper wallets (which are public, private or seed keys written on
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paper), to using hardware wallets (which are hardware to store your wallet
information), to a digital wallet (which is a computer with a software hosting your
wallet information), to hosting your wallet using an exchange where cryptocurrency
is traded, or by storing your wallet information on a digital medium such as plaintext.
1.2.5. Anonymity:
The cryptocurrency in a wallet is not tied to a person, but rather to one or more
specific keys (or "addresses"). Still, cryptocurrency exchanges are often required by
law to collect the personal information of their users.
Some cryptocurrencies, such as Monera, zero coin, zero cash, and Crypto Note,
implement additional measures to increase privacy, such as by using zero-knowledge
proofs.
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2. Definition
• The system does not require a central authority; its state is maintained through
distributed consensus.
• The system keeps an overview of cryptocurrency units and their ownership.
• The system defines whether new cryptocurrency units can be created. If new
cryptocurrency units can be created, the system defines the circumstances of their
origin and how to determine the ownership of these new units.
• Ownership of cryptocurrency units can be proved exclusively cryptographically.
• The system allows transactions to be performed in which ownership of the
cryptographic units is changed. A transaction statement can only be issued by an
entity proving the current ownership of these units.
• If two different instructions for changing the ownership of the same cryptographic
units are simultaneously entered, the system performs at most one of them.
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3. Economics
3.1. Block rewards
Proof-of-work cryptocurrencies, such as Bitcoin, offer block rewards incentives for
miners. There has been an implicit belief that whether miners are paid by block
rewards or transaction fees does not affect the security of the blockchain, but a study
suggests that this may not be the case under certain circumstances.
The rewards paid to miners increase the supply of the cryptocurrency. Not only do
miners have to factor in the costs associated with expensive equipment necessary to
stand a chance of solving a hash problem, they further must consider the significant
amount of electrical power in search of the solution. Generally, the block rewards
outweigh electricity and equipment costs, but this may not always be the case.
The current value, not the long-term value, of the cryptocurrency supports the reward
scheme to incentivize miners to engage in costly mining activities. Some sources claim
that the current Bitcoin design is very inefficient, generating a welfare loss of 1.4%
relative to an efficient cash system.
3.2. Transaction fees
Transaction fees for cryptocurrency depend mainly on the supply of network capacity
at the time, versus the demand from the currency holder for a faster
transaction.[citation needed] The currency holder can choose a specific transaction
fee, while network entities process transactions in order of highest offered fee to
lowest.[citation needed] Cryptocurrency exchanges can simplify the process for
currency holders by offering priority alternatives and thereby determine which fee will
likely cause the transaction to be processed in the requested time.[citation needed]
For Ether, transaction fees differ by computational complexity, bandwidth use, and
storage needs, while Bitcoin transaction fees differ by transaction size and whether the
transaction uses SegWit.
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3.3. Exchanges
Cryptocurrency exchanges allow customers to trade cryptocurrencies for other assets,
such as conventional fiat money, or to trade between different digital currencies.
Crypto marketplaces do not guarantee that an investor is completing a purchase or
trade at the optimal price. As a result, many investors take advantage of this by using
arbitrage to find the difference in price across several markets.
3.4. Atomic swaps
Atomic swaps are a mechanism where one cryptocurrency can be exchanged directly
for another cryptocurrency, without the need for a trusted third party such as an
exchange.
3.5 ATMs.
Figure 3.1. Crypto ATM
Jordan Kelley, founder of Robocoin, launched the first Bitcoin ATM in the United
States on 20 February 2014. The kiosk installed in Austin, Texas, is similar to bank
ATMs but has scanners to read government-issued identification such as a driver's
license or a passport to confirm users' identities
3.6. Initial coin offerings
An initial coin offering (ICO) is a controversial means of raising funds for a new
cryptocurrency venture. In an ICO campaign, a percentage of the cryptocurrency
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(usually in the form of "tokens") is sold to early backers of the project in exchange for
legal tender or other cryptocurrencies, often Bitcoin or Ether.
According to PricewaterhouseCoopers, four of the 10 biggest proposed initial coin
offerings have used Switzerland as a base, where they are frequently registered as non-
profit foundations. The Swiss regulatory agency FINMA stated that it would take a
"balanced approach" to ICO projects and would allow "legitimate innovators to
navigate the regulatory landscape and so launch their projects in a way consistent with
national laws protecting investors and the integrity of the financial system."
3.7. Price trends
The market capitalization of a cryptocurrency is calculated by multiplying the price
by the number of coins in circulation. The total cryptocurrency market cap has
historically been dominated by Bitcoin accounting for at least 50% of the market cap
value where altcoins have increased and decreased in market cap value in relation to
Bitcoin. Bitcoin's value is largely determined by speculation among other
technological limiting factors known as blockchain rewards coded into the
architecture technology of Bitcoin itself. The cryptocurrency market cap follows a
trend known as the "halving", which is when the block rewards received from Bitcoin
are halved due to technological mandated limited factors instilled into Bitcoin which
in turn limits the supply of Bitcoin. As the date reaches near of a halving (twice thus
far historically) the cryptocurrency market cap increases, followed by a downtrend.
By June 2021, cryptocurrency had begun to be offered by some wealth managers in
the US for 401(k)s.
3.8. Volatility
Cryptocurrency prices are much more volatile than established financial assets such
as stocks. For example, over one week in May 2022, Bitcoin lost 20% of its value and
Ethereum lost 26%, while Solana and Cardano lost 41% and 35% respectively. The
falls were attributed to warnings about inflation. By comparison, in the same week,
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the Nasdaq tech stock index fell 7.6 per cent and the FTSE 100 was 3.6 per cent
down.[103]
In the longer term, of the 10 leading cryptocurrencies identified by the total value of
coins in circulation in January 2018, only four (Bitcoin, Ethereum, Cardano and
Ripple (XRP)) were still in that position in early 2022.[104] The total value of all
cryptocurrencies was $2 trillion at the end of 2021, but had halved nine months
later.[105][106] The Wall Street Journal has commented that the crypto sector has
become “intertwined” with the rest of the capital markets and “sensitive to the same
forces that drive tech stocks and other risk assets”, such as inflation forecasts.
3.9. Databases
Figure 3.2. Database
There are also centralized databases, outside of blockchains, that store crypto market
data. Compared to the blockchain, databases perform fast as there is no verification
process. Four of the most popular cryptocurrency market databases are Coin Market
Cap, Coin Gecko, Brave New Coin, and Crypto compare.
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4. Legality
An "implicit ban" applies in another 15 countries, which include Bahrain, Bangladesh,
China, Colombia, the Dominican Republic, Indonesia, Iran, Kuwait, Lesotho, Lithuania,
Macau, Oman, Qatar, Saudi Arabia and Taiwan. In the United States and Canada, state
and provincial securities regulators, coordinated through the North American Securities
Administrators Association, are investigating "Bitcoin scams" and ICOs in 40
jurisdictions.
Various government agencies, departments, and courts have classified Bitcoin
differently. China Central Bank banned the handling of Bitcoins by financial institutions
in China in early 2014.
In Russia, though owning cryptocurrency is legal, its residents are only allowed to
purchase goods from other residents using Russian ruble while nonresidents are allowed
to use foreign currency. Regulations and bans that apply to Bitcoin probably extend to
similar cryptocurrency systems.
In August 2018, the Bank of Thailand announced its plans to create its own
cryptocurrency, the Central Bank Digital Currency (CBDC)
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5. Increasing regulations
The rise in the popularity of cryptocurrencies and their adoption by financial
institutions has led some governments to assess whether regulation is needed to protect
users. The Financial Action Task Force (FATF) has defined cryptocurrency-related
services as "virtual asset service providers" (VASPs) and recommended that they be
regulated with the same money laundering (AML) and know your customer (KYC)
requirements as financial institutions.
In May 2020, the Joint Working Group on inter VASP Messaging Standards published
"IVMS 101", a universal common language for communication of required originator
and beneficiary information between VASPs. The FATF and financial regulators were
informed as the data model was developed.
In June 2020, FATF updated its guidance to include the "Travel Rule" for
cryptocurrencies, a measure which mandates that VASPs obtain, hold, and exchange
information about the originators and beneficiaries of virtual asset transfers. As of
December 2020, the IVMS 101 data model has yet to be finalized and ratified by the
three global standard setting bodies that created it.
The European Commission published a digital finance strategy in September 2020.
This included a draft regulation on Markets in Crypto-Assets (MiCA), which aimed to
provide a comprehensive regulatory framework for digital assets in the EU.
On 10 June 2021, the Basel Committee on Banking Supervision proposed that banks
that held cryptocurrency assets must set aside capital to cover all potential losses.
Tobias Adrian, the IMF's financial counsellor and head of its monetary and capital
markets department said in a January 2022 interview that "Agreeing global regulations
is never quick.
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5.1. United States
In 2021, 17 states passed laws and resolutions concerning cryptocurrency regulation.
The U.S. Securities and Exchange Commission (SEC) is considering what steps to
take. On 8 July 2021, Senator Elizabeth Warren, part of the Senate Banking
Committee, wrote to the chairman of the SEC and demanded that it provide answers
on cryptocurrency regulation by 28 July 2021, [needs update] due to the increase in
cryptocurrency exchange use and the danger this poses to consumers. On 17 February
2022, the Justice department named Eun Young Choi as the first director of a National
Cryptocurrency Enforcement Team to aid in identification of and dealing with misuse
of cryptocurrencies and other digital assets.
5.2. China
In September 2017, China banned ICOs to cause abnormal return from cryptocurrency
decreasing during announcement window. The liquidity changes by banning ICOs in
China was temporarily negative while the liquidity effect became positive after news.
On 18 May 2021, China banned financial institutions and payment companies from
being able to provide cryptocurrency transaction related services. This led to a sharp
fall in the price of the biggest proof of work cryptocurrencies. For instance, Bitcoin
fell 31%, Ethereum fell 44%, Binance Coin fell 32% and Dogecoin fell 30%. Proof of
work mining was the next focus, with regulators in popular mining regions citing the
use of electricity generated from highly polluting sources such as coal to create Bitcoin
an…
5.3. India
Figure 5.1. Cryptocurrency in India
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At present, India neither prohibits nor allows investment in the cryptocurrency market.
In 2020, the Supreme Court of India had lifted the ban on cryptocurrency, which was
imposed by the Reserve Bank of India. Since then, the investment in cryptocurrency
is considered legitimate though there is still ambiguity about the issues regarding the
extent and payment of tax on the income accrued thereupon and also its regulatory
regime. But it is being contemplated that the Indian Parliament will soon pass a
specific law to either ban or regulate the cryptocurrency market in India. Expressing
his public policy opinion on the Indian cryptocurrency market to a well-known online
publication, a leading public policy lawyer and Vice President of SAARCLAW (South
Asian Association for Regional Co-operation in Law) Hemant Batra has said that the
"cryptocurrency market has now become very big with involvement of billions of
dollars in the market hence, it is now unattainable and irreconcilable for the
government to completely ban all sorts of cryptocurrency and its trading and
investment". He mooted regulating the cryptocurrency market rather than completely
banning it. He favoured following IMF and FATF guidelines in this regard.
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6. Criticism
Bitcoin has been characterized as a speculative bubble by eight winners of the Nobel
Memorial Prize in Economic Sciences: Paul Krugman, Robert J. and by central bank
officials including Alan Greenspan, Agustin Carstens, Vitor Constâncio, and Nout
Wellink.
The investors Warren Buffett and George Soros have respectively characterized it as a
"mirage" and a "bubble"; Morgan Chase CEO Jamie Dimon have called it a "bubble"
and a "fraud", respectively, although Jamie Dimon later said he regretted dubbing
Bitcoin a fraud. Fink called Bitcoin an "index of money laundering".
In June 2022, Bill Gates said that cryptocurrencies are "100% based on greater fool
theory"
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7. Social trend
According to Alan Feuer of The New York Times, libertarians and anarcho-capitalists
were attracted to the philosophical idea behind Bitcoin. Economist Paul Krugman
argues that cryptocurrencies like Bitcoin are "something of a cult" based in "paranoid
fantasies" of government power.
Nigel Dodd argues in the social life of Bitcoin that the essence of the Bitcoin ideology
is to remove money from both social and governmental control. Dodd discusses the
"Declaration of Bitcoin's Independence", a message of crypto-anarchism with the
words: "Bitcoin is inherently anti-establishment, anti-system, and anti-state. Bitcoin
undermines governments and disrupts institutions because Bitcoin is fundamentally
humanitarian."
David Golumbia says that the ideas influencing Bitcoin advocates emerge from right-
wing extremist movements such as the Liberty Lobby and the John Birch Society and
their anti-Central Bank rhetoric, or, more recently, Ron Paul and Tea Party-style
libertarianism. Nakamoto said in 2008.
According to the European Central Bank, the decentralization of money offered by
Bitcoin has its theoretical roots in the Austrian school of economics, especially with
Friedrich von Hayek in his book Denationalization of Money: The Argument Refined,
in which Hayek advocates a complete free market in the production, distribution and
management of money to end the monopoly of central banks.
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8. Advantages and disadvantages
8.1 Advantages
8.1.1. Open code for mining crypto currency
BTC applies the same algorithms that are used in online banking. The only
difference of Internet banking is the disclosure of information about the users. All
information about the transaction in the BTC network is shared (how, when), but
there is no data about the recipient or the sender of the coins (there is no access to
the personal information of the owner`s wallet).
8.1.2. No inflation
The maximum number of coins is strictly limited by 21 million Bitcoins. As there
are neither political forces nor corporations able to change this order, there is no
possibility for development of inflation in the system.
8.1.3. Peer-to-peer cryptocurrency network
In such networks there is no master server, which is responsible for all operations.
Exchange of information (in this case — money) is between 2-3 or more software
clients. All installed by users program-wallets are part of a bitcoin network. Each
client stores a record of all committed transactions and the number of bitcoins in
each wallet. Transactions are made by hundreds of distributed servers. Neither banks
or taxes, nor governments can control the exchange of money between.
8.1. 4. Unlimited possibilities of transaction
Each of the wallet holders can pay to anyone, anywhere and any amount. The
transaction cannot be controlled or prevented, so you can make transfers anywhere
in the world wherever another user with a Bitcoin wallet is located.
8.1.5. No boundaries
Payments made in this system are impossible to cancel. The coins cannot be faked,
copied or spent twice. These capabilities guarantee the integrity of the entire system.
Every month the number of online shops, resources, and companies to accept BTC
is expanding.
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8.1.6. Low BTC operation cost
The BTC cryptocurrency works as physical cash, combining the functions of e-
commerce. No need to pay commission and fees to banks and other organizations.
The main part of such process is mathematics, which does not need money. The
commission fee in this system is lower than in any other. It amounts to 0.1% of the
transaction amount. The operation interest charges go to BTC miner’s wallets.
8.1.7. Decentralization
There is no central control authority in the network, the network is distributed to all
participants, each computer mining bitcoins is a member of this system. This means
that the central authority has no power to dictate rules for owners of bitcoins. And
even if some part of the network goes offline, the payment system will continue to
operate stable.
8.1.8. Easy to use
Taken into account that the procedure of opening an account for the company in
Ukrainian banks is overcomplicated and can be refused without explanation, using
BTC is convenient for companies. The company needs approximately 5 minutes to
create a BTC wallet and immediately starts to use it without any questions and
commissions.
8.1.9. Anonymity
It is completely anonymous and at the same time fully transparent. Any company
can create an infinite number of bitcoin addresses without reference to name, address
or any other information.
8.1.10. Transparency
The BTC stores the history of transactions that have ever taken place. It is called a
sequential chain of blocks or blockchain. The block chain keeps information about
everything. So, if the company has publicly used the BTC address, then anyone can
see how much BTC is owned. If the company address is not publicly confirmed,
then no one will ever know that it belongs to this company. For complete anonymity
companies usually use the unique BTC address for every single transaction.
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8.1.11. Speed of transaction
The ability to send money anywhere and to anyone in a matter of minutes after the
BTC network will process the payment.
8.1.12. It belongs only to the wallet owner
There is a unique electronic payment system where the account belongs to the
owner only. For example, on PayPal if for any reason the company decides that the
owner somehow uses the account in a wrong way, the system has the right to freeze
all funds on the account without even warning the owner about it.
Verification of the proper usage of account is the total responsibility of the owner.
With BTC, the owner has a private key and a corresponding public key, which is
the address to the BTC wallet. No one but the owner can withdraw bitcoins.
8.1.13. No chances to use some personal data for fraud
This is an important point. Today the majority of purchases are made with credit
cards. They are unreliable. Filling forms on websites, customers are required to
enter the following data: card number, expiration date and code. It’s hard to come
up with a less secure way to make payment. Therefore, credit cards are very often
stolen. BTC transactions do not require disclosure of any personal data. Instead, it
uses two keys: public and private. The public one is available to all (i.e. the address
of BTC wallet), but the private key is known only to the owner. The transaction
needs to be signed by interacting private keys and applying a mathematical
function. This creates evidence that the transaction is performed by the owner.
8.1.14. The possibility of investing funds in the transparent and profitable resource
8.2. Disadvantages
According to above mentioned author, Ivaschenko (2016) the disadvantages are as follows:
8.2.1. Strong volatility
Almost all of the ups and downs of the BTC value depend directly on the declared
statements of the governments of different countries. This volatility creates the
problem in the short term.
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8.2.2. Large risks of investing in cryptocurrency
It is our opinion that the list of cryptocurrencies (bitcoin) disadvantages are much
longer, and are related to risk of money laundry, terrorist and other illegal activity
financing, lack of a central issuer, which means that there is no legal formal entity
to guaranty in case of any bankruptcy, and alike. However, although it is very
difficult to predict, many academics and professionals of this topic claim that the
future of cryptocurrencies is bright since it will remove trade barriers and
intermediaries, it would decrease the cost of transactions, and therefore boost the
trade and the economy. Nevertheless, we should consider and pessimistic voices in
the academic world as well, suggesting that the high risk of volatility, hacking risks,
and lack of institutional backup makes the future of cryptocurrencies not very
optimistic
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References
https://eprints.ugd.edu.mk/18707/1/Cryptocurrencies.pdf
https://en.wikipedia.org/wiki/Cryptocurrency
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