Analysis of Cryptocurrencies
Human beings have limited time due to personal interests. Therefore, global marketing has to be creative and modernized. Technological advancements have eased the speed, security, and manner of transactions due to digitalization. Investors apply the use of cashless systems, online marketing, and stock preservation and counter checking in trading goods and services at the moment. In the modern market, globalization has led to the creation and development of cryptocurrency which is a digital asset working as a medium of exchange for financial exchanges. However, before the money could be sent to the deserved recipient, encrypted codes was required to avoid questions of third party involvement. The codes also served in securing the observation of the transactions done (Tiago 2014, pp. By the time Wei Dai published the concerns based on "b-money" in 1998, Nick Szabo was also on the process of developing “bit gold” which worked on the note that all the transactions observed the proof of work systems.
Later more cryptographic Medias such as bitcoin, Ethereum, ripple, Zcash, and Stellar developed. Zcash The market capitalization is $634 million, and the price is $ 135. The nodes of the network are tract during payments. Ether tokens appear on the wallet for referrals in other accounts. Ripple Market capitalization is $12. 92 billion at a price of $0. 32 and is expected to use the XRP- ripple cryptocurrency payment. Bitcoin operates with a shared public ledger on a blockchain. All confirmed transactions are included in a bitcoin wallet where calculations occur (Ron 2013, pp. The disadvantage of biotin is that the integrity and chronological order of the blockchain is enforced with cryptography. Stellar The market capitalization is $4 billion at a price of $0. Stellar focuses on bank and network related transfer of cash.
The concern of tax evasion dramatically affects the international finance markets. The held currencies which have not undergone the complete transactions leads to losses in the business operations. Additionally, the fines imposed on cryptocurrencies users are unnecessary and out of order because the half-completed transactions result as result of the misunderstandings of blockchain transfer systems. The expectations of controllers of the international finance market are the adoption of cryptocurrencies but with limitations of asset transfer. The wallets on consumers will depend on the number of transactions carried. This is an incredibly remarkable technological phenomenon because everybody loves their spending privacy. However, there have been concerns as this technology has arguably been linked to some illicit activities (McCormack 2017, pg. For example, there have been concerns that Bitcoin opens opportunities for criminals to partake in illegal activities such as money laundering, unlawful exchange of goods and services, and terrorist funding.
One of the most infamous examples of this is the Silk Road which used the TOR network and the bitcoin payment systems to allow for the sale of forged identities and illegal drugs. Since the cryptocurrency techniques appreciate privacy, it becomes relatively had for governments’ central authorities to intervene and prosecute such infringers of the law. " Cryptocurrency uses technology and algorithms to eliminate the need of banks in the trading exchange. This makes it harder for the government to control the flow of money in the economy hence not being able the model the status of inflation. The government also uses legitimate logical methods to ensure that individuals pay taxes maximum and reduce the cases of evasion (Goyal 2018, pg. This, however, is threatened as cryptocurrency provides a private peer to peer transaction creation a chance for parties to evade taxing hence reducing the amounting revenue.
To manage these strong competitive trends, banks are investing in developments of cryptocurrencies that are transparent and simulates the ideology of the existing ones. Cryptocurrency has also trended in the market due to its cheap transactional costs. The charges incurred in transacting is relatively less value compared to the amount charged on fiat currency. The fiat currency plays a vital economic role of reporting on the flow of money in an economy (Ezugwu 2018, p. g 3). This, however, is exterminated by the use of cryptocurrency as it is a peer to peer techniques hence an economy may attain an inflationary status without proper control measures in place. , Miller, A. , and Shi, E. , 2016, February. Step by step towards creating a safe, smart contract: Lessons and insights from a cryptocurrency lab.
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