Scribd
Upload
83 views

Crypto-Currencies and Their Possible Impact in Business

The document discusses cryptocurrencies and their potential impact on business. It defines cryptocurrency as a digital asset that uses cryptography to function as a medium of exchange and secure financial transactions without a central authority. The document outlines both benefits, such as lower transaction costs and transparency, and risks, including price volatility, anonymity enabling criminal activity, and lack of regulation. It concludes that while cryptocurrencies have disrupted global business, countries and companies are responding in different ways, and the technology could significantly change how people view money.

Uploaded by

Apoorv arora
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
83 views

Crypto-Currencies and Their Possible Impact in Business

The document discusses cryptocurrencies and their potential impact on business. It defines cryptocurrency as a digital asset that uses cryptography to function as a medium of exchange and secure financial transactions without a central authority. The document outlines both benefits, such as lower transaction costs and transparency, and risks, including price volatility, anonymity enabling criminal activity, and lack of regulation. It concludes that while cryptocurrencies have disrupted global business, countries and companies are responding in different ways, and the technology could significantly change how people view money.

Uploaded by

Apoorv arora
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 5

Crypto-currencies and their

possible impact in business

Overview:
A cryptocurrency is a digital asset that works as a medium of exchange that uses
advance solving of codes also know as cryptography to secure financial
transactions, control the creation of additional units of currency, and verify the
transfer of assets within the network. In recent times this has gained extreme
popularity and that too for a good reason. Through this essay we seek to determine
the good, bad and the ugly side and as well as the implications and the future of
this emerging technology.
Goals:
• Gain a better understanding of current and the future use of this technology and
the way it will impact the business environment and central institutions as well.
• Relate the essay to the course material to easily grasp and capture the entirety of
the world of crypto-currencies.
APOORV ARORA
100360470
BUSI 2490 S10

Crypto-currencies and their possible impact in business


Cryptocurrency is a digital asset that acts as a medium of exchange and enables
transfer of funds without any banking system or institution facilitating the system.
Cryptocurrency is decentralized in nature and uses blockchain technology which in
layman's terms is a ledger maintained by the users. Blockchain in simple terms is a
continuous list of growing records which are secured and are resistant to change
which are makes manipulating crypto currency a tough task. The most popular
cryptocurrency is bitcoin which was founded by Satoshi Nakamoto. Bitcoin was
first released as an open-source software in 2009, and it is the first decentralized
cryptocurrency in circulation. Since the existence of bitcoin, over 4,000 altcoins
which are substitute bitcoin and other crypto currencies have been created. The
supply of a cryptocurrency is facilitated by the cryptocurrency community and it is
able to place a fixed market cap on these currencies. Cryptocurrency as of right
now should not be confused as money as it fails to meet functions of money even
though in the future it might be the case. Cryptocurrency mining which in layman's
terms is validation of transaction has led to a surge in prices of graphic cards as
they use computing power for mining. Many crypto ATM'S and ICO(initial coin
offering) have come up in recent times which seek to secure funds for upcoming
crypto ventures.
Cryptocurrency’s have been in mainstream media and its popularity has been
increasing by leaps and bounds amongst the youth and those who seek to be among
the early adopters of this technology. There are a few very good reasons as to why
some people now prefer crypto as compared to so called conventional fiat money
which is regulated by government and banking institutions.
As there is no central institution, it is extremely difficult for hackers to steal or
manipulate cryptocurrency as there is no central database which contains all the
sensitive information which makes it safer in security. In addition to lower
transaction costs, crypto supply is controlled and the same crypto currency cannot
be made by any firm, or the government which makes it a democratic financial
system. Some developing nations like pre 2009 Zimbabwe and Venezuela who
suffer from a stable, and a valuable currency can adapt to crypto currency and get
their share in the international markets and business as global markets are more
readily available than they ever were. Unlike credit cards, these currencies clear
immediately and account for a faster means of payment which makes it attractive
to businesses. Cryptocurrency such ass bitcoin offer complete transparency and
show the balance on the coin wallet which is protected which to enhanced
confidence to those who use this technology.
Those skeptical of crypto currency put forward the arguments which are also worth
taking in account that this technology could potentially replace the entire financial
system that has been there for centuries. Fiat money which came after gold
standard was trusted by the people because it was granted a legal status the
government and since nothing backs up or underwrites the value of crypto other
than the fact that some users of this technology acknowledge this as a medium of
exchange. There have been massive price fluctuations which has further led to
businesses and enterprises losing their confidence and the fact that even though
hacking the entire system is very tough but due to lack of rules and regulations
some of the so called ‘experts' purchase cheap crypto currency and artificially
pump the value of the currency as people often value their opinion and people want
to profit from the ‘next big thing' so this leads to some people exploiting the
system as majority lose their investment in a very short duration. Cryptocurrency
also offers anonymity and while on the surface is looks as an advantage but a
deeper look reveals that as crypto is not attached to a physical location it makes it a
dream come true for criminals as it get extremely hard to locate the perpetrators.
Dark web which has worldwide content but requires specific software and
configuration to access has websites such as silkroad which sells illegal drugs and
more websites which sells illegal weapons, hitmen for hire and child pornography
for sale. It has also been a concern for law authorities as anonymity has led to
money laundering cases as well and it is a huge task for law forces keeping track of
such activities.
Though this innovation has its good and bad sides, it is difficult to argue that it has
not affected the global business world and taken it by storm. Some countries like
China have banned cryptocurrencies entirely and some big names such as
Mastercard are using this technology and E-commerce giant Amazon now accepts
cryptocurrency for selling gift cards. It has improved customer access and
businesses adopt it as it makes selling on a global scale easier. It has also been
attractive to investors that may tend to prefer cryptocurrencies rather than stock
market or real estate investments due to massive price fluctuations. Businesses also
tend to now adopt this as it offers of transparency and reduces management errors.
Some also argue that it should be regulated by agencies such as SEC or other
government agencies to protect the interest of the majority which others are against
this notion. It could disrupt an entire industry and create a new one which could
drastically change the way we as people have looked at money.
REFERENCES

1. Cryptocurrency. (2019, February 24). Retrieved from


https://en.m.wikipedia.org/wiki/Cryptocurrency
2. Cryptocurrency. (2019, February 24). Retrieved from
https://en.m.wikipedia.org/wiki/Cryptocurrency
3. Georgiev, G. (n.d.). BITCOIN PRICE TO DROP TO $4,000 BEFORE
BOUNCING TO $10,000 ACCORDING TO SENIOR ANALYST [Bitcoin].
Retrieved from https://bitcoinist.com/bitcoin-price-to-drop-to-4000-before-
bouncing-to-10000-according-to-senior-analyst/

You might also like