Research on Crypto Currency for Digital Money- myassignmenthelp

Question: Discuss about theResearch on Crypto Currency for Digital Money. Answer: Introduction New form of digital money named crypto currencies are used in all over the world (Narayanan, Bonneau, Felten, Miller Goldfeder, 2016). This has expanded a lot in the past few years especially with the development of Bitcoins. This has made its presence felt after the development of distributed ledger system like Blockchain. The use of crypto currencies these days have been widely used in various businesses. Crypto currency and its popularity A crypto currency is a digital asset created to work like an exchange mediums which utilises cryptography to make transactions secure, to regulate the generation of additional units and to verify assets transfer (Vigna Casey, 2016). Alternative currencies, digital currencies and virtual currencies are some of the type of crypto currencies. As opposite to the centralised systems like central banking system and centralised electronic money, crypto currencies have decentralised control. Bitcoin was the first decentralised crypto currencies which were created in the year 2009. The major reason for crypto currency becoming popular is that it is a form of digital money that is highly safe and has a decentralised structure. No-VAT in the European region has assisted to enhance the value and popularity of this digital currency (Al Shehhi, Oudah Aung, 2014). Since people understand it to be safe and making frauds is impossible hence its value has increased in the digital space. Pros and Cons of Crypto currency Crypto currency is a relatively new kind of technology and it is in the developmental stage. There are various pros and cons associated with crypto currencies. Advantages of crypto currencies: It is a highly transparent form of money since there is an open and distributed ledger (Surowiecki, 2011). In this all the transactions are monitored and recorded hence no duplication or alterations can be made. These transactions can be verified by anyone and no single entity has manipulation over it. In traditional form of currency inflation enhances due to more printing of money or shifting prices in economies. Crypto currencies do not experience inflation since there are a limited number of minable crypto currencies. It is programmed to have 21 million Bitcoins that is capable of handling 10 billion people. This is a highly portable for of money as it can be carried easily without detection. Billions of dollars cam ne transferred with the use of portable devices. It is independent of other identities in the transactions which assists hem in keeping it safe. It does not have any intermediate hence they have no fear regarding any organisation monitoring transaction details. It provides freedom to buy and sell without the source of your funds being traced. Disadvantages Since there is no particular organisation that monitors these transactions hence there is a feeling of distrust in the minds of people. This misunderstanding will rupture the growth of this system. Due to lack of centralised system, it is unlikely that anybody will lose any money but if anybody loses it then there will be no one to provide security cover. The encryption identifies the currency and not the owner (Raymaekers, 2015). If there are any criminal transactions then there will be no chance that the transaction can be traced. This can be problems for the government. These are subjected to be under threat of the market fluctuations like the changing market prices. While investing in crypto currencies this is the biggest challenge that any person can face. Crypto currency regulation There are no central agencies to regulate the crypto currency but the governments inside the nation are responsible for regulating it (Harwick, 2016). This makes the system more flexible and government all around the world regulate it as per their financial regulatory norms. Many countries have made laws against it and many have made it a legal tender. It is also the matter of fact that the design of the system of crypto currency is as such that they cannot be regulated as the transactions are recorded at various nodes which can be present anywhere around the world. This is not good in many ways as there is no one responsible for the loss if any faults occur. It is hard to hack the system of crypto currencies but if it is somehow done then a lot of money is at stake. Due to non-presence of any governing authority making rules and regulations of the transactions and deciding the prices of the commodity or services can be a difficult task. Apart from this it reduces the chances of detecting any frauds in the system. This is a major issue in any financial transactions. Effect of Crypto currencies on international business There are wide ranges of effect on the international business by the use of Crypto currencies. This can be understood by the following points: It brings uniformity in the currencies as there will be single money like Bitcoins that can be used for the international border trades. As it can be seen in the above part that it helps in controlling inflation and hence there will be reduction in the chances of business failures which differed from country to country. It cuts out the middle man from the business (Heid, 2013). This help in the easing on the ways of doing business on the global level. On few cents are required as a transaction fees. It has simplified the crowd funding process. Developers and entrepreneurs do not want to invest a large number of times in raising funds trying to convince banks, angels, and investors to give equity in their start-ups. It helps in reducing the time that was consumed in the transaction as it was a fast system that helps a business to do transactions. It also reduces the complex system of transactions and hence making the business process easier. Conclusion From the above report it can be said that the digital currencies have made their position in the global economy. Crypto currencies have become one of the best forms of digital money. It has become popular because it is safe and free of any middle man. Crypto currencies have several advantages and disadvantages in their business. There is no specific regulatory authority of crypto currencies but this is not good for the whole system and it creates lack of faith in the minds of people. Crypto currencies have higher effect on the international business. References Al Shehhi, A., Oudah, M., Aung, Z. (2014, December). Investigating factors behind choosing a cryptocurrency. In Industrial Engineering and Engineering Management (IEEM), 2014 IEEE International Conference on (pp. 1443-1447). IEEE. Christensen, A., (2017). Retrieved from: https://www.businessload.com/run-grow-business/cryptocurrency-future-international-business/ Harwick, C. (2016). Cryptocurrency and the Problem of Intermediation. The Independent Review, 20(4), 569-588. Heid, A. (2013). Analysis of the Cryptocurrency Marketplace. Retrieved February, 15, 2014. Narayanan, A., Bonneau, J., Felten, E., Miller, A., Goldfeder, S. (2016). Bitcoin and Cryptocurrency Technologies: A Comprehensive Introduction. Princeton University Press. Raymaekers, W. (2015). Cryptocurrency Bitcoin: Disruption, challenges and opportunities. Journal of Payments Strategy Systems, 9(1), 30-46. Surowiecki, J. (2011). Cryptocurrency. Technology review, 114(5), 106-107. Vigna, P., Casey, M. J. (2016). The age of cryptocurrency: how bitcoin and the blockchain are challenging the global economic order. Macmillan.