Cryptocurrency Finance Report
Advantages of using cryptocurrency are that it is easier to access, quick, does not need a lot of details and facilitates international trades. However, cryptocurrency has some limitations such as not widely used in most countries; it can be hacked, and a lot of uncertainty. Besides, it has impacts in the international trade. Many banks across the world are adapting to the use of crypto currencies to remain successful in the market. However, lack of central government control will prevent its success. Luckily, the technology intelligence then boomed allowing the creation of complex systems like Digiscash, Flooz, and Beenz that was used as a medium for exchange but inevitably failing due to fraud, financial problems and the conflicts in companies. It thus facilitated the need to re-building of the Cryptocurrency.
Cryptocurrency is defined as the medium of exchange that is digitally developed to do a virtual trade ('Stache, 2018, n. p). It is electronically stored in a block chain utilizing encryption technique in controlling the creation of the monetary units and verification transfer of funds. Bitcoin cash is the offshoot of the original Bitcoin. 2017, launched has become one of the most cryptocurrency in use and competing with bitcoin. The bitcoin cash came to be after the split from the Bitcoin due to the issues of the scalability (Herrera-Joancomartí, & Pérez-Solà, 2016, p. Compared to bitcoin that has strict limitations on the size block of 1MB, the bitcoin cash has expanded to 8MB block that allows faster transaction times. In July this year, 2018 has grown to reach a market cap of $14.
03billion and the token value of $87. Ripple (XRP) is a real-time global settlement network that was launched in 2012. It offers instant, low cost end-to-end transparent payment internationally. Ripple uses unique conformation consensus ledger as a method of confirmation without the need to use mining reducing computing power and reduced network latency. By July 2018, Ripple had a market of $19. Many website and companies do not widely accept cryptocurrency as few countries have legalized the use of digital currencies. Volatility and uncertainty have enormous impact on the cryptocurrency that limits faster mass adoption. The law of one price is the economic theory the defines the amount of the identical asset to be traded anywhere with the same price regardless of the location even when the currency exchange rate are traded on a free market or in a limited trading market.
According to James (2016, p. 147), cryptocurrencies use unique advanced technical analysis available to analyze cryptocurrencies in the market like the Japanese candlesticks technical analysis tool. The impact is the risk widespread of the economic hardship in many of the European countries. An additional effect is the decentralization of the finance on a massive scale and the economic sanctions. De-dollarizing the global economy and cryptocurrencies has been the possible attempt to stabilize the situation. Bitcoin is the widely used cryptocurrency in most of the countries as the mode of payment in transacting business. In line with the innovative technology and not being the not controlled by any state or central bank. The University of Nicosia even accepted the payment of tuition fees using digital currencies and as well started offering courses in digital Currencies.
It was a haven in Cyprus having considered that one Bitcoin traded at a record of $40billion that a month later it doubled to trading as high as 95billion an increase of about 350% within 2months. Chief strategist Nicholas Colas at Cyprus Financial Technology Company ConvergeEx Group confirmed that it was the most significant breakthrough at the moment. The Cyprus Banks reopened after closing for two weeks under the weight losses after Greek government debt pushing the Cyprus bankruptcy near bankruptcy. Ideally, the increased demand for bitcoin came from the increased demand in the geographic areas affected by the Cypriot Financial crisis. The factors are both internal and external factors due to volatility in the market. On internal factors, first, the cryptocurrency traders affect the rise and fall in the rate of the cryptocurrency.
Significant traders in the likes of the Bears and the Bulls attempt to manage the fluctuation of the cryptocurrency rates in support of the market tool subjects. Crossed influence of different Crypto Prices affects other cryptocurrencies values. External factors include the technical updates on the crypto-software affecting its prices. As a result, many investors are withdrawing from investing their money. Long-term Volatility at this juncture emerges and counts against it a problem that is likely to affect bitcoin due to its high profile. Secondly, the amounting computing power it takes to support bitcoin is the point of concern by the investors. The risk to hacker or computer crash can risk to an overnight loss of one's virtual fortune. The baseline is that the price swings in the cryptocurrencies in the market may not determine the fortunes in the future and thus a considerable reasoning is a key input when investing.
Com (Trendowski & Rustambekov, 2017, p. 83) and the 2000s Real Estate Bubble (Mera & Renaud, 2016, n. p) that caused a great Recession that until in 2015, most of the America economy has not fully recovered from the recession. Part 3 Cryptocurrency and blockchain association from South Korea, Russia, and China have joined together to sue internet corporations to restrict the crypto add in the Facebook, Twitter, Good and Yandex a resolution that was reached to an agreement at a crypto conference at Moscow (Girasa, R. p. The movement if affected will see bitcoin spinning off effects and then change the world to a successful experiment and will be a hit. The front-runner is the Swedish governments that already set poster child for advocated of a cashless society.
They have introduced the e-krona that has equivalent value to Sweden’s regular kronor. If the governments and central banks allow cryptocurrencies to continue to use, would cause profound impacts on financial systems and other activities of the central banks. Cryptocurrencies will not replace the government-backed currency as most people do not trust the US dollar or the Euro. Massive hacks attacks such as Sheep Marketplace and Mt. Gox left the institution in trodden after the security breaches to hackers. The black market risk activities risk damaging of the reputation of the financial system due to the high risk to gray market participants such as the dark Webb. The susceptibility to high price volatility within a short period and thus renders the current unsuitable for conventional investors.
Superior cryptocurrency has the potential to eliminate bitcoins. Though some countries have adopted to use cryptocurrencies, lack of central government control has caused some nations like China, South Korea, Indian and Russia to recall the use of cryptocurrency. In future, proper regulation measures will instill future of the cryptocurrency. References Baldi, M. and Chiaraluce, F. A trusted cryptocurrency scheme for secure and verifiable digital transactions. and Ronca, J. G. , Bank of America Corp, 2015. System and Method for Wire Transfers Using Cryptocurrency. U. and Pérez-Solà, C. , 2016, September. Privacy in bitcoin transactions: new challenges from blockchain scalability solutions. In Modeling Decisions for Artificial Intelligence (pp. Springer, Cham. Financial regulations and price inconsistencies across Bitcoin markets. Information Economics and Policy, 39, pp. Singh, D.
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