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Importance of Cryptocurrency PDF

The document discusses cryptocurrencies including Bitcoin. It defines cryptocurrencies as digital currencies that use cryptography and work on decentralized networks without central authorities. Some key benefits are low or no transaction fees, ability to transfer funds internationally faster than wire transfers, and lack of oversight from central authorities. However, there are also risks like volatility in value, lack of regulation, and vulnerabilities to hacking and theft. Overall the document provides an overview of cryptocurrencies including what they are, popular types like Bitcoin, advantages and disadvantages of using them.

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Mayar Walid
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80 views

Importance of Cryptocurrency PDF

The document discusses cryptocurrencies including Bitcoin. It defines cryptocurrencies as digital currencies that use cryptography and work on decentralized networks without central authorities. Some key benefits are low or no transaction fees, ability to transfer funds internationally faster than wire transfers, and lack of oversight from central authorities. However, there are also risks like volatility in value, lack of regulation, and vulnerabilities to hacking and theft. Overall the document provides an overview of cryptocurrencies including what they are, popular types like Bitcoin, advantages and disadvantages of using them.

Uploaded by

Mayar Walid
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Importance of Cryptocurrency

Introduction

The world economy is inevitably heading towards a digital ecosystem. Everything


from investment to remittance is paperless. The latest and most promising addition
to the digital payments sector is cryptocurrencies. Initially, many were skeptical of
digital assets competing with traditional assets, but cryptocurrencies are becoming
more and more common. The trend started with some celebrities in the crypto world,
but new currencies are introduced every year. However, the sudden emergence and
popularity of new currencies has widespread consequences, from banks to customers
like you. Understanding where cryptocurrencies come from and how they interact
with modern banks is important if you want to keep your money safe and healthy for
years to come. In this report we will define the definition of the Cryptocurrency and
its types with its advantages and disadvantages.
Cryptocurrencies are digital or virtual currencies intended as a medium of exchange
called cryptographic system. It is very similar to a real currency, except that it has
no physical reification and works with encryption.
Cryptocurrencies work independently and are decentralized without banks or central
authorities, so new entities can only be added if certain conditions are met. For
example, in the case of Bitcoin, miners can only receive Bitcoin after adding a block
to the blockchain and generate a new Bitcoin. The Bitcoin limit is 21 million. After
that, Bitcoin will no longer be generated.

Cryptocurrency types:
Bitcoin is the most popular and valuable cryptocurrency. An anonymous person
named Satoshi Nakamoto invented it and introduced it to the world in a white paper
in 2008. There are thousands of cryptocurrencies on the market today.
Each cryptocurrency claims to have different features and specifications. For
example, Ethereum's is touting itself as the gas for its underlying smart contract
platform. Ripple's XRP is used by banks to facilitate remittances between different
regions. Released to the public in 2009, Bitcoin remains the most traded and covered
cryptocurrency. As of November 2021, more than 18.8 million Bitcoins were in
circulation, with a market capitalization of approximately $ 1.2 trillion. There are
only 21 million Bitcoins. After the success of Bitcoin, many other cryptocurrencies
known as "altcoin" were launched. Some of these are Bitcoin clones or forks, while
others are new currencies created from scratch. These include Solana, Litecoin,
Ethereum, Cardano, and EOS.

Benefits of cryptocurrencies
With cryptocurrencies, there are few or no transaction costs-for example, different
from the charges for transferring money from a digital wallet to a bank account. You
can trade day and night at any time, with no restrictions on purchases or withdrawals.
Also, anyone is free to use cryptocurrencies, as opposed to setting up a bank account
that requires paperwork and other paperwork.
International cryptocurrency transactions are also faster than wire transfers. Wire
transfer takes about half a day to move money from one place to another. With
cryptocurrencies, transactions only take minutes or seconds.
Therefore, cryptocurrencies eliminate all the problems of modern banks: there are
no limits on the funds you can transfer, your account cannot be hacked, and there is
no single point of failure. As mentioned above, as of 2018, over 1,600
cryptocurrencies are available. Popular ones are Bitcoin, Litecoin, Ethereum and
Zcash. And new cryptocurrencies will appear every day. Given how much they are
growing now, there are likely to be more.

Advantages of using Cryptocurrency


• The use of Cryptocurrency may provide several company opportunities.
Advantages may include:
o Cryptographic transactions are generally a quick and complex process.
For example, bitcoins can be transferred from digital wallets with only
one smartphone, smartphone, or computer.
o Each Cryptocurrency transaction is referenced in the publishing list as
a block chain that is a technology that allows its existence. This makes
it possible to pursue the history of bitcoins to prevent people from not
owning copying or to prevent the original returned transaction.
o Blockchain aims to eliminate intermediaries such as banks and online
marketplaces. That is, there are no payment processing fees.
o Cryptocurrency payments are increasingly used in large organizations
and areas such as fashion and medicine.
Disadvantages of using cryptocurrencies
• There are some business drawbacks to using cryptocurrencies:
o You can lose your virtual wallet or delete your currency. There are also
thefts from websites that can store cryptocurrencies remotely.
o The value of cryptocurrencies like Bitcoin can change significantly, and it
is not safe for some to convert "real" money into Bitcoin.
o The cryptocurrency market is not regulated by the Financial Conduct
Authority (FCA), so there are no rules to protect your business.
o When businesses and consumers switch from you to new cryptocurrencies
or completely abolish digital currencies, they can be depreciated and
worthless.
o Cryptocurrency exchanges are vulnerable to cyber-attacks and can result
in irreparable investment losses.
o Cryptocurrencies can be vulnerable to fraud.

Conclusion
cryptocurrency is a hot topic of financial systems in the world. There is a major
volatility for the exchange rate of encrypted tidal flow. This is a high risk of trading
cryptocurrency. Her growth was attracting attention of many speculators. They are
easily portable. Only after the trust required for cryptographic skirts, they are used
on larger scale. Your boom can be sinker if the trustworthy thing cannot be won.
They are still in early childhood, and they are not sure they are trading in market
markets. Many different nutrition assets are required. It is quite possible that Bitcoin
will soon have the opportunity for cryptocurrencies to flourish. Despite its
shortcomings, Bitcoin is still considered a tour deforce in digital currencies. It
provided alternative currencies to developing countries and opened the door to
economic transformation. In this way, it gives individuals more options for
managing their finances. Cryptocurrencies seem to have entered the financial sector
and changed the world's financial situation forever, regardless of Bitcoin, which has
undergone a sublime transformation.
References
Cryptocurrency prices, charts and market capitalizations. CoinMarketCap. (n.d.).
Retrieved April 18, 2022, from https://coinmarketcap.com/

Cryptocurrency prices, charts, daily trends, market cap ... (n.d.). Retrieved April
18, 2022, from https://www.coinbase.com/price

Digital currency, Bitcoin and cryptocurrency. (2018). Inclusive FinTech, 33–82.


https://doi.org/10.1142/9789813238640_0002

Mohsin, K. (2021). Cryptocurrency and its impact on environment. International


Journal of Cryptocurrency Research, 1(1), 1.
https://doi.org/10.51483/ijccr.1.1.2021.1-4

Sergeenkov, A. (2021, November 29). What is cryptocurrency? CoinDesk Latest


Headlines RSS. Retrieved April 18, 2022, from
https://www.coindesk.com/learn/what-is-cryptocurrency/

What is cryptocurrency? here’s what investors should know ... (n.d.). Retrieved
April 18, 2022, from
https://www.nerdwallet.com/article/investing/cryptocurrency

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