Cryptocurrency: A new investment opportunity

By:

Mohamed Abdulla

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 Abstract

The Abstract of the research is given as follows:

Purpose

In the past few years as an outcome of digital innovation, cryptocurrency has emerged as

a new investment option. It is a new kind of investment based on digital media. This

Research, therefore, has been conducted to identify the positive and negative sides of

cryptocurrency. By making detailed discussion about the risk and the benefits associated

with it cryptocurrency has been evaluated as the investment method in this study.

Methodology

This research is used in mix design structure including both qualitative and quantitative

analysis and data collection techniques. Secondary data consisting of the facts and

figures about the cryptocurrency has been collected to recognize the website. However

primary data has been collected from the sample of 50 people by using the convenience

sampling method. 5 point Likert scale has been used to collect the responses which have

been further process by using descriptive statistical techniques.

Results

It is a good option for investors to invest in Cryptocurrency for the long run in the

future.

Significance

This Research is very significant as it has several theoretical and practical contributions.

Theoretically, this research has added new knowledge to the highly merging investment

opportunity. Practically this research is important for the potential investors of

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cryptocurrency and current investors that will guide their decision of making a

cryptocurrency investment and to manage them.

Limitations and Recommendations

The limitations of the research include sample size, simplicity of the framework,

analysis technique, items, and interview addition. Recommendations however have been

proposed to increase the sample size, use the inferential statistical technique, conduct

interview analysis, and so on. Future researches will address the current limitations of

the research.

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 Contents
Abstract...........................................................................................................................................................2
Introduction....................................................................................................................................................5
Background.................................................................................................................................................5
Problem statement......................................................................................................................................5
Research Objectives...................................................................................................................................6
Research question.......................................................................................................................................6
Hypothesis...................................................................................................................................................7
Significance of research.............................................................................................................................7
Organization of study.................................................................................................................................8
Literature review............................................................................................................................................9
Concept of Bitcoin......................................................................................................................................9
Features of Bitcoin....................................................................................................................................11
Decentralized.........................................................................................................................................11
Flexible...................................................................................................................................................11
Transparent...........................................................................................................................................12
Fast.........................................................................................................................................................12
Low transaction fees.............................................................................................................................12
Empirical Evidence..................................................................................................................................13
Methodology..................................................................................................................................................16
Research design........................................................................................................................................17
Data sources..............................................................................................................................................17
Data Collection instrument......................................................................................................................17
Sample size and technique.......................................................................................................................18
Analysis techniques..................................................................................................................................18
Data Collection process............................................................................................................................18
Research ethics..........................................................................................................................................19
Analysis and Results.....................................................................................................................................20
Primary data.............................................................................................................................................20
Descriptive Statistics:...........................................................................................................................30
Reliability Analysis...............................................................................................................................33
Secondary Data Analysis:........................................................................................................................34
1. Investing in cryptocurrency:......................................................................................................34
2. The long-run impact of investing in cryptocurrency...............................................................36
3. Benefits for business by investing in cryptocurrency..............................................................36
4. Threats or risks that are present in investing in cryptocurrency:.........................................36
Conclusion.....................................................................................................................................................38
Practical and theoretical implications....................................................................................................38

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 Limitations................................................................................................................................................39
References.....................................................................................................................................................41

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 Introduction

The introduction of the research is given as follows:

Background

Digital Discoveries and their utilisations have highly affected different aspects of the

business market. Cryptocurrency is the form of digital currency which is a big outcome

of digital innovation. It has gained popularity and significance in the few years. It is not

similar to the old kind of conventional investment method in which the digital currency

can be issued in circulated only within the specific community, geography, currency, or

organization. The cryptocurrency has been introduced with different kind of features that

covers the limitations of other kinds of investments. The cryptocurrency is based on

blockchain technology like a bitcoin record the transaction by using an open distributed

ledger. The cryptocurrency is based on the latest and updated level of technology. It

highly solves the problem of double-spending and does not involve a third party.

Decentralization enables blockchain technology to build capacity, improve security, and

make settlements. This technology has been considered secure and it is difficult to attack

it. However, these features are not highly important in the traditional financial system.

Therefore cryptocurrency has gained a high level of popularity in the market and

financial industry (Borges and Neves, 2020).

Problem statement

Unlike the previous time, there is a large number of businesses and investment

opportunities have been available. Just like digital businesses, digital investment

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 opportunities have emerged. The cryptocurrency is among new digital investment option

that is availing by a large number of people in all over the world. It has provided many

financial benefits to its owners as a new investment opportunity. But the negative side is

also present there that is the risk associated with this investment. Therefore this research

has been made to investigate the effectiveness of the investment in the form of

cryptocurrency and to explore its positive and negative sides. This research is very

significant as it will fill the literature gap present on the topic of making measurements

in cryptocurrency.

Research Objectives

Following are the research objectives:

• To find out whether cryptocurrency is an appropriate investment opportunity?

• To determine whether it is safe to invest in cryptocurrency?

• To check out the long-term impact of investing in cryptocurrency?

• To find either cryptocurrency or conventional options are better?

Research question

To develop the hypothesis of the research the following question has been designed:

• Is it a safe investment plan to invest in cryptocurrency?

• What can be the long-run effects of a cryptocurrency investment?

• What Are the Advantages to the business to invest in cryptocurrency?

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• How investing in cryptocurrency is a good option than the other conventional

investment methods?

• What can be potential threats associated with investing in cryptocurrency?

Hypothesis

The following hypothesis has been developed to guide the direction of the research:

H1: Investing in cryptocurrency is a safe investment option.

H2: Investing in the cryptocurrency is beneficial in long run:

H3: Investing in cryptocurrency is better than conventional investment methods

H4: Investing in cryptocurrency is risky in some aspects

Significance of research

Cryptocurrency is a highly merging investment opportunity that is the outcome of the

development in the IoT. In the future, it is expected that cryptocurrency will become the

biggest investment opportunity in the market. Therefore this research is very significant

for the people who are dealing with cryptocurrency investment. It will give them insight

into the positive and negative sides of investing in cryptocurrency. Therefore it will help

them to manage their investment in an effective way. Also, many people are interested

in investing in cryptocurrency but reluctant to its novelty. Therefore this research will

also guide their decision of investing in cryptocurrency. This research is also very

significant theoretically because it will add new knowledge to the topic of

cryptocurrency investment which is a novel idea.

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Organization of study

This research has been organized according to the accepted format of the research paper.

After the introduction, the next portion is comprised of a literature review showing the

work of previous researchers. After the literature review, there is a portion of

methodology showing how the process of research has been performed. After

methodology analysis has been conducted to process the data for the research and

arriving at results. This section has discussed in detail the results of the study derived

from the quantitative and qualitative analysis techniques. The final section after the

analysis is the portion of the conclusion that has summarized the overall research and

consisted of limitations and recommendations for future researches. So this whole

research has been formatted in the standard form of research.

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 Literature review

Concept of Bitcoin
Bitcoin is known as an open-source whose code is available on GitHub. That is the

reason that coders in different countries of the world get motivated by the Bitcoin

invention and they developed hundreds of cryptocurrencies. These currencies are also

known as altcoins or alternative cryptocurrencies. Bitcoin cannot be considered flawless.

Every emerging pain point or purpose is an encouragement for making new coins. The

aim of making coins is to highlight particular issues like the high cost of computation of

PoW that improves transaction numbers per second. It also involves improving block

size that guarantees that there is no transparency in the ledger and accommodating well-

organized and impactful use of smart contracts. Besides, to pay for the turn of events

and launch costs, developers can raise funds for the project even before the

cryptocurrency is launched. Specifically, initial coin offerings (ICOs), introductory

crypto-token contributions, and beginning token deals are comparable ways to deal with

raising subsidizing to grow new crypto-tokens and digital forms of money. ICOs permit

individuals to put resources into a project by purchasing part of its cryptocurrency

tokens or pre-launched ERC20-agreeable tokens living on the Ethereum network ahead

of time, regularly dependent on a white paper or different archives on the project for

financial backers to analyze.

On October 6, 2017, it has been noted that 269 crypto-tokens and 869 cryptocurrencies

were established and traded, 5 with around US$148.4 billion of total market

capitalization. Cryptocurrencies are different from normal currency because they have a

circulating supply, maximum supply, and total supply. When it comes to maximum

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supply, it is associated with the best estimate of the highest amount of coins that will be

developed in the lifetime of the cryptocurrency. In terms of total supply, it can be

defined as the total number of coins that are present at the moment. Nevertheless, some

quantity of coins can be locked, reserved, or burned and cannot be traded on the public

market. Therefore, the determining of the circulating supply of coins happens from the

deduction in total supply. In terms of analyzing market capitalization, circulating supply

put into practice by developers denotes the number of coins that are present and going

through in the market and available for the public.

It has been seen that alternative investments play a wide role in portfolio management at

the moment and it involves private equity (PE), commodities, funds, and real estate

along with others such as artworks. Alternative investments carry a lesser historical

association to conventional asset classes like cash equivalents, stocks, and bonds. These

assets provide variation to the portfolio.

Even though the discussion on whether cryptocurrencies can turn out to be important for

the mainstream financial system, the worldwide day-by-day trade exchanged volume of

bitcoin arrived at the midpoint of over US$1 billion every 2016, which shows plentiful

liquidity. Additionally, research on bitcoin shows that the cost of bitcoin doesn’t

vacillate a similar way as the financial exchange, shown primarily by low return

relationships. Notwithstanding some may contend that the quantity of bitcoins to be

created is covered at 21 million, possibly restricting future stock, this should be

remembered that there are many promising altcoins set up, and their number is as yet

developing. Subsequently, cryptocurrencies can be decent elective speculation,

particularly as far as carrying expansion to mainstream resources (Xi et al., 2020).

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Even though the valuation of cryptocurrencies is altogether different from that of

traditional instruments. Numerous cryptocurrencies like Bitcoin have a fixed supply, so

the valuation of fiat cash with a limitless supply can’t be applied. Moreover, in contrast

to equities or securities, advanced monetary forms produce no cash flow, making the

limited cash flow valuation unimportant. All things considered, digital money tokens are

given to financial backers as verification of future cash flow; payments; conceivable

future trade; and the option to partake, vote, construct squares or buy. On top of things

to come digital currency benefits, the organization impact of cryptographic money might

be a pivotal factor in its valuation for the related technology and saw the value of the

digital currency by the public (Anyfantaki and Topaloglou, 2018).

Features of Bitcoin

Decentralized.
When it comes to the features of Bitcoin, the foremost of them is considered

decentralized. It is identical to conventional currencies that are used by digital platforms.

The use of bitcoin can also occur for electronically buying stuff. In contrast to platform-

based digital currencies and fiat money, bitcoin is decentralized. In other terms, bitcoin

cannot be controlled by a single group or organization. Its supply is associated with a

specific algorithm that allows its access to anyone using the internet.

Flexible.
Another feature of bitcoin is its flexibility. The addresses or wallets of Bitcoin can be

developed online with ease without any sort of fees or complex terms. Moreover, the

transactions of bitcoins are specified to location. Therefore, the transfer of bitcoin can be

done among different countries with ease (Saksonova and Kuzmina-Merlino, 2019)

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Transparent
In terms of bitcoin processes, every transaction is associated with the whole network.

The transactions will get approval from miners or mining nodes, they store them in a

block which they are developing and associate the finished block to other nodes. Every

transaction record is stored within a blockchain that is distributed and open. Therefore,

every miner carries a copy that helps in the verification of the blockchain.

Fast.
The broadcasting of transactions occurs within a few seconds, however, every

transaction takes around 10 minutes as it is verified by miners. therefore, when an

individual transfers bitcoins anywhere in the world then the transactions take time of

few minutes to be completed.

Low transaction fees.

can pick to pay extra to work with a quicker transaction. At present, a low need for

mining transactions (an element of input age and size) is for the most part utilized as a

marker for spam transactions, and practically all miners anticipate that every transaction

should incorporate an expense. Miners verifiably have been boosted basically by

recently made coins, yet that is evolving. As the quantity of bitcoins available for use

approaches its breaking point, transaction charges will, at last, be the motivating force

for miners to complete the exorbitant verification procedures (D’Alfonso et al., 2016).

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Empirical Evidence

The main problem with the payment system of conventional Fiat currency is the high fee

for the transaction and the long-run period of settlement. This scenario motivates the

people to switch to alternative currency Options with the short processing time and no

intermediaries leading to the potential market for digital currencies. Before the

introduction of the cryptocurrency, many other digital currencies were also present in

the market. The most commonly used digital currency is developed by some

organizations and transacted for their purpose. These currencies include loyalty points

developed by internet-based platforms. Legal entities or institutions take a grip over the

development, transaction, record keeping, and digital currency verification. Therefore

these platform-based digital currencies have a centralized approach. A very common

example of the digital currency of e-commerce is loyalty points like Rakuten and iHerb

that are considered as cash. Q coin which is developed by China can be bought utilizing

Renminbi which helps purchase services at Tencent. The transaction of the centralized

digital currencies is designed to provide support to the issuing institutions (Andrianto

and Diputra, (2017).

It is hard to utilize such kind of digital currency as an alternative to fiat money because

there is no legal status of the digital currency. So, decentralized digital currencies are a

potential alternative for conventional currency as there is no central legal authority to

confirm the transaction. But there are many hurdles to take control without the

utilization of central authority. One major problem is the double-spending which derive

that there is the possibility to spend a similar digital coin. This issue has not been solved

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in a long run, which demotivates the existence of decentralized currency. To make sure

that all transactions are properly reflected in the bank account of digital currency to take

control over double-spending. Therefore it raised the need for a trusted laser in the

absence of the central authority (D’Alfonso et al., 2016).

The first time cryptocurrency was introduced was e-cash as a centralized system. It has

become common in the year 1990 the protocol of cryptographic avoided double-

spending. For the protection of the privacy of the cryptocurrency, a blind signature is

used. Soon after the introduction of the cryptography protocol the popularity of digital

gold has been increased among which e-gold was given high priority (Borges and

Neves, 2020).

Inputs and outputs are present in each transaction. To holds the customer address, as

well as amount output, has used while for giving reference to the output about the

transaction did earlier, input is used. In a case of reduction of balance in the wallet then

some bitcoins are sent to the specific adders from the wallet of bitcoin is involved in the

transaction. To sign any transaction, there has a private key used for the wallet to

bitcoin. This is proof that bitcoin is a secured way of coins and transactions done

between customers especially between the owner as well as the wallet. So to make the

account secure for the owner and to keep the security of cash and transaction, a specific

key performs a greater role (Chuen et al., 2017).

There are different systems by which businesses can earn a reward by the use of the

mining process. SHA-256 hashing algorithm and Hashcash PoW system are two

technologies that are used by Bitcoin. According to the PoW system, Financial rewards

are distributed according to the block numbers that are successfully mined. Therefore

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mining in the cryptocurrency is a very competitive Technology in which the miner is

given a puzzle to take the high value of the Bitcoin while other miners are deprived of

any kind of reward. Therefore reward motivate the miners to play an active role in data

block mining. The consisting process usually consists of a huge amount of computation

and highly energy-consuming. Another commonly used system is PoS known as proof-

of-stake. POS is not like PoW is no additional work is needed in this scheme. Investors

of the schemes are given a reward based on the total number of the coin under his

possession. For instance, the user has one percent of currency has a possibility of 1%

mining of that currency of POS block. Generally, this system does not need a heavy

amount of computation work. Its supplement higher currency security e and is usually

utilized in the combination with a various system like Peercoin case. The supply of

cryptocurrency is only confined to 221 million there for Bitcoin given to Miner for

adding the blocked successfully will be made half in every 210,000 blocks following

Bitcoin protocol. When Bitcoin was first introduced in 2009 the revolt of 50 newly

introduced Bitcoin added to the blockchain but the reward has been made half on 9 July

2016 (Yilmaz and Hazar, 2018).

For making innovations in the market and to make transactions extra available and

secure, the first most successful and easiest online micropayment system was

“Cryptocurrency”. But in 2008, some serious issues cause the liquidation and these

issues were unable to solve at that time. Making transactions among people directly

from merchandising machines for the services and goods taken by people can be done

with the help of bitcoin or BTC which is also the form of cryptocurrency. Through

different methods bitcoins can be used by giving wallets, these methods include

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software, different online platforms, different apps. While mining is another good way

to get the bitcoin. Without an intermediary, transactions are done with the help of the

P2P community which is a bitcoin system which done transactions among users without

any delay. For the entire community, bitcoin helps to fulfill the duties of transactions in

a wonderful manner (Andrianto and Diputra, 2017).

A Blockchain is a public ledger as well as verified with the help of community nodes

through which most transactions are recorded. It can be any of us normal person who

installed Bitcoin software’s in our phones or using a pc system. The transaction will be

present among customers then shown by the network but at priority, customers have

made a switch then after this all these things will happen. First, the verification will be

done and then will be recorded in the public ledger called Blockchain so its transfer will

be fulfilled. And it is exactly called mining in short the record-maintaining process while

customers who have the power to do this thing called miners. By using the transaction

information, the incentive for making the cryptophyte puzzle is possible due to bitcoins.

So, a reward is given to the successful miners along with high traction fees (Gupta et al.,

2020).

Methodology

The methodology of the research shows how the data is collected and processed. It

reflects the method and techniques that have been adopted to perform the research. The

Methodology of the research is given as follows:

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Research design

This research has used the mixed research design to collect process and analyze the data.

According to this Research design both qualitative and quantitative analysis has been

conducted. In the quantitative analysis, the questionnaire technique has been used. While

in qualitative analysis the secondary data analysis has been conducted to derive the

results. Therefore the design is very effective for this research because both of the

analysis techniques have supported it.

Data sources

There are two sources from which data is obtained by using the data collection

techniques. These two sources include primary data and secondary data. As this research

is a mixed Research design therefore both primary and secondary data have been

collected. For quantitative analysis, the primary data has been collected through a

questionnaire. While for qualitative analysis the secondary data has been collected

through a questionnaire.

Data Collection instrument

The secondary data has been collected through the journal and websites. However, the

primary data is collected through the questionnaire which is an effective instrument for

data collection. An effective questionnaire has been designed based on the items related

to the variables of the research. A 5-point Likert scale has been designed ranging from

strongly disagree to strongly agree to record the responses of the respondents.

Demographic questions were also included.

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Sample size and technique

The population for this research was all the people who are dealing with the

cryptocurrency business. Among this population, 50 people related to the stock

exchange and other businesses involved in cryptocurrency have been selected as a

sample. However, this sample size is small as compared to the scope of the topic. This

sample has been selected by using the convenience sampling technique. This sampling

technique selects the people who can be selected most conveniently. However secondary

data has been selected from authentic website sources.

Analysis techniques

For data analysis, there are two techniques available including inferential statistics and

descriptive statistics. For processing data for this research, descriptive statistical

techniques have been applied. Mean median and mode have been identified to derive the

results. Data shown through tables and organized in the proper format. However

secondary data is also analyzed including graphs related to the cryptocurrency and its

recent trends.

Data Collection process

The process of Data Collection was a lengthy process that has taken almost one month.

First of all, people were given the training to collect the data accurately. After that, a

questionnaire has been developed by meeting all the requirements. The people who are

the respondents of the research were contacted through telephone calls and emails to ask

the time for data collection. It has taken one week after which the questionnaire has been

distributed to the respondents. They have responded to the questionnaire within 6 to 7

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days. Then the questionnaire has been analyzed and processed by using statistical

techniques in the next week and results have been derived.

Research ethics

All the research ethics has been during the process of research. Inform consent has been

taken while collecting the data from the respondents. Also so the personal information of

the respondents has been kept confidential and there was no breach of any privacy. No

fake data has been included in the research. Conclusively this research has adopted all

the ethical standards required for standardized research.

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 Analysis and Results

Primary data

Following are the results of this study using the tables and descriptive statistics.

01. Please specify your gender

Table 01: Gender

01. Please specify your gender

Valid Cumulative

Frequency Percent Percent Percent

Valid Male 25 50.0 50.0 50.0

Female 25 50.0 50.0 100.0

Total 50 100.0 100.0

Data collected for this study is from a sample size of a total of 50 respondents. Data

collected from respondents by using a questionnaire. Both male and female respondents

were included in the sample of the data. The numbers of male respondents in this study

were 25. While the numbers of female respondents in this study were 25. This provided

an equal opportunity for both genders to express their opinions about the topic.

02. Please specify your age

Table 02: Age

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02. Please specify your age

Valid Cumulative

Frequency Percent Percent Percent

Valid Below 24 10 20.0 20.0 20.0

years

24 to 30 years 25 50.0 50.0 70.0

Above 30 15 30.0 30.0 100.0

years

Total 50 100.0 100.0

The primary data collected for this study is divided into three categories as per the ages

of the respondents. The majority of the respondents were 25 that belonged to the

category of 24 to 30 years of age. While least number of respondents were 10 belonged

to the category of below 24 years of age.

03. Please specify your qualification

Table 03: Qualification

03. Please specify your qualification

Valid Cumulative

Frequency Percent Percent Percent

Valid Intermidiate 15 30.0 30.0 30.0

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 Graduation 20 40.0 40.0 70.0

Masters 15 30.0 30.0 100.0

Total 50 100.0 100.0

The primary data collected for this study is divided into three categories as per the

qualification of the respondents. The majority of the respondents were 20 that belonged

to the category of graduation. While least number of respondents were 15 belonged to

the category of Masters.

04. Cryptocurrency is a valid currency that can be used as money.

Table 04: Cryptocurrency is a valid currency that can be used as money.

04. Cryptocurrency is a valid currency that can be used as money.

Valid Cumulative

Frequency Percent Percent Percent

Valid Strongly 4 8.0 8.0 8.0

Disagree

Disagree 2 4.0 4.0 12.0

Neutral 19 38.0 38.0 50.0

Agree 24 48.0 48.0 98.0

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 Strongly Agree 1 2.0 2.0 100.0

Total 50 100.0 100.0

According to the results of this study, the majority of the respondents who provided their

opinion in the research survey agree that Cryptocurrency is a valid currency that can be

used as money.

05. Cryptocurrency is an advanced form of money in digital form.

Table 05: A cryptocurrency is an advanced form of money in digital form.

05. Cryptocurrency is an advanced form of money in digital form.

Valid Cumulative

Frequency Percent Percent Percent

Valid Strongly 3 6.0 6.0 6.0

Disagree

Disagree 4 8.0 8.0 14.0

Neutral 13 26.0 26.0 40.0

Agree 26 52.0 52.0 92.0

Strongly Agree 4 8.0 8.0 100.0

Total 50 100.0 100.0

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According to the results of this study, the majority of the respondents who provided their

opinion in the research survey agree that Cryptocurrency is an advanced form of money

in digital form.

06. It is a good option to use cryptocurrency as an alternative to money.

Table 06: It is a good option to use cryptocurrency as an alternative to money.

06. It is a good option to use cryptocurrency as an alternative to money.

Valid Cumulative

Frequency Percent Percent Percent

Valid Strongly 3 6.0 6.0 6.0

Disagree

Disagree 3 6.0 6.0 12.0

Neutral 14 28.0 28.0 40.0

Agree 20 40.0 40.0 80.0

Strongly Agree 10 20.0 20.0 100.0

Total 50 100.0 100.0

According to the results of this study, the majority of the respondents who provided their

opinion in the research survey agree that it is a good option to use cryptocurrency as an

alternative to money.

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07. Cryptocurrency has good future value.

Table 07: Cryptocurrency has good future value

07. Cryptocurrency has good future value.

Valid Cumulative

Frequency Percent Percent Percent

Valid Strongly 2 4.0 4.0 4.0

Disagree

Disagree 2 4.0 4.0 8.0

Neutral 15 30.0 30.0 38.0

Agree 22 44.0 44.0 82.0

Strongly Agree 9 18.0 18.0 100.0

Total 50 100.0 100.0

According to the results of this study, the majority of the respondents who provided their

opinion in the research survey agree that Cryptocurrency has good future value

08. Cryptocurrency is a good option for investment.

Table 08: A cryptocurrency is a good option for investment.

08. Cryptocurrency is a good option for investment.

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 Valid Cumulative

Frequency Percent Percent Percent

Valid Strongly 2 4.0 4.0 4.0

Disagree

Disagree 3 6.0 6.0 10.0

Neutral 15 30.0 30.0 40.0

Agree 20 40.0 40.0 80.0

Strongly Agree 10 20.0 20.0 100.0

Total 50 100.0 100.0

According to the results of this study, the majority of the respondents who provided their

opinion in the research survey agree that a cryptocurrency is a good option for

investment.

09. Cryptocurrency investment can be very beneficial in long run.

Table 09: Cryptocurrency investment can be very beneficial in long run.

09. cryptocurrency investment can be very beneficial in long run.

Valid Cumulative

Frequency Percent Percent Percent

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Valid Strongly 2 4.0 4.0 4.0

Disagree

Disagree 3 6.0 6.0 10.0

Neutral 21 42.0 42.0 52.0

Agree 18 36.0 36.0 88.0

Strongly Agree 6 12.0 12.0 100.0

Total 50 100.0 100.0

According to the results of this study, the majority of the respondents who provided their

opinion in the research survey agree that Cryptocurrency investment can be very

beneficial in long run.

10. There are risks involved in investing in cryptocurrency.

Table 10: There are risks involved in investing in cryptocurrency.

10. There are risks involved in investing in cryptocurrency.

Valid Cumulative

Frequency Percent Percent Percent

Valid Strongly 2 4.0 4.0 4.0

Disagree

Disagree 3 6.0 6.0 10.0

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 Neutral 10 20.0 20.0 30.0

Agree 16 32.0 32.0 62.0

Strongly Agree 19 38.0 38.0 100.0

Total 50 100.0 100.0

According to the results of this study, the majority of the respondents who provided their

opinion in the research survey agree that there are risks involved in investing in

cryptocurrency.

11. The value of cryptocurrency can be influenced by different external factors.

Table 11: The value of cryptocurrency can be influenced by different external factors.

11. The value of cryptocurrency can be influenced by different external

factors.

Valid Cumulative

Frequency Percent Percent Percent

Valid Strongly 2 4.0 4.0 4.0

Disagree

Disagree 2 4.0 4.0 8.0

Neutral 15 30.0 30.0 38.0

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 Agree 11 22.0 22.0 60.0

Strongly Agree 20 40.0 40.0 100.0

Total 50 100.0 100.0

According to the results of this study, the majority of the respondents who provided their

opinion in the research survey agree that the value of cryptocurrency can be influenced

by different external factors.

12. Demand for cryptocurrency in the market can affect its value.

Table 12: Demand for cryptocurrency in the market can affect its value

12. Demand for cryptocurrency in the market can affect its value.

Valid Cumulative

Frequency Percent Percent Percent

Valid Strongly 2 4.0 4.0 4.0

Disagree

Disagree 2 4.0 4.0 8.0

Neutral 3 6.0 6.0 14.0

Agree 29 58.0 58.0 72.0

Strongly Agree 14 28.0 28.0 100.0

Total 50 100.0 100.0

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According to the results of this study, the majority of the respondents who provided their

opinion in the research survey agree that demand for cryptocurrency in the market can

affect its value.

Descriptive Statistics:

The following tables are representing the descriptive statistics of this study.

Descriptive Statistics

Std.

N Minimum Maximum Mean Deviation Variance

04. Cryptocurrency is a 50 1 5 3.32 .913 .834

valid currency that can

be used as money.

05. Cryptocurrency is 50 1 5 3.48 .974 .949

an advanced form of

money in digital form.

06. It is a good option to 50 1 5 3.62 1.067 1.138

use cryptocurrency as

an alternative to money.

07. Cryptocurrency has 50 1 5 3.68 .957 .916

good future value.

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08. Cryptocurrency is a 50 1 5 3.66 1.002 1.004

good option for

investment.

09. cryptocurrency 50 1 5 3.46 .930 .866

investment can be very

beneficial in long run.

10. There are risks 50 1 5 3.94 1.096 1.200

involved in investing in

cryptocurrency.

11. The value of 50 1 5 3.90 1.111 1.235

cryptocurrency can be

influenced by different

external factors.

12. Demand for 50 1 5 4.02 .937 .877

cryptocurrency in the

market can affect its

value.

Valid N (listwise) 50

The table above shows the values of Mean, standard deviation, and variance. The results

of all these values are showing a tendency towards the 5. It means that the majority of

32
the respondents of this study are agreeing with the statements used in this study. It

suggests that Cryptocurrency is an advanced form of currency and it is a good option to

invest in this area. Although meantime this currency is not stable in the market and there

are many risks involved with it but it can be beneficial in the future.

N Miss Me Med Mo
Statistics
ing an ian de

5 0 1.5 1.50 1a

01. Please specify your gender 0 0

5 0 2.1 2.00 2

02. Please specify your age 0 0

5 0 2.0 2.00 2

03. Please specify your qualification 0 0

04. Cryptocurrency is a valid currency that can be 5 0 3.3 3.50 4

used as money. 0 2

05. Cryptocurrency is an advanced form of money 5 0 3.4 4.00 4

in digital form. 0 8

06. It is a good option to use cryptocurrency as an 5 0 3.6 4.00 4

alternative to money. 0 2

5 0 3.6 4.00 4

07. Cryptocurrency has good future value. 0 8

08. Cryptocurrency is a good option for investment. 5 0 3.6 4.00 4

33
 0 6

09. cryptocurrency investment can be very 5 0 3.4 3.00 3

beneficial in long run. 0 6

10. There are risks involved in investing in 5 0 3.9 4.00 5

cryptocurrency. 0 4

11. The value of cryptocurrency can be influenced 5 0 3.9 4.00 5

by different external factors. 0 0

12. Demand for cryptocurrency in the market can 5 0 4.0 4.00 4

affect its value. 0 2

The above table is representing the values of the mean, median, and mode. According to

the values of these results, the majority of the respondents of this study are agreeing with

the statements used in this study. It suggests that Cryptocurrency is the future form of

money. With the advancement of technology, everything is shifting to digital platforms

so does the currency as well. It can be a more secure and safe form of money and could

be easier to use. Investment in this currency can also beneficial in long run.

Reliability Analysis

Reliability Statistics

Cronbach's

Alpha N of Items

34
.822 9

In this study, reliability analysis is performed to test the reliability of the scale used for

this study. Cronbach Alpha is used to perform this test. Generally, the value of Cronbach

Alpha higher than 0.6 is acceptable for these kinds of studies. In this study, the value of

Cronbach Alpha is 0.8, which is higher than the acceptable range and shows significant

reliability of the scale.

Secondary Data Analysis:

The following is the secondary data analysis of this study.

1. Investing in cryptocurrency:

Cryptocurrency is the advanced form of currency or money that is introduced with the

help of digital technology in the world. Cryptocurrency is using advanced technology

that is based on blockchain technology. In the present times, it is considered the most

secure and safe technology in terms of hacking or manipulating digital data or

information. Due to this reason, this currency is secure and safe in terms of hacking or

manipulating by any cyber attack or hacker. A cryptocurrency is a complex form of

digital technology that is also very time-consuming to generate with the help of

powerful computers and devices. There are several benefits of this currency to use for

business purposes, transactions, and to use in foreign countries without exchanging the

currency in other local currency. Being a digital currency it is very easy to maintain in

the account and transfer two other accounts with the help of the internet. Cryptocurrency

35
is also a very secure form of currency that is very hard to steal. Hackers are any digital

attacker who cannot access the information and data of this currency. Also, it is not a

physical form of money, so there is no risk of losing it by the person who owns it in the

digital wallet. At the start of the introduction of this currency in the market, There was

very less value of this currency among the people due to lack of awareness and lack of

demand for this currency in the market. But over time, with increasing awareness of this

currency in the market and with the benefits of using this currency the demand for this

currency has been increased in the market, and with increasing the demand the value of

this currency is also increased at a significant level. As technology is overtaking

everything in every area of daily life including businesses, entertainment,

manufacturing, products and services, and also money the use of digital currency or

cryptocurrency would be increased in the future. With increasing the demand for

cryptocurrency in the future the value of this currency would also be increased as per

demand. The supply of specific cryptocurrencies is limited and cannot be optimized as

per the increasing rate of demand in the market. Thus, it can be expected that the value

of this currency would be increased as compared to the current value of this currency in

the market. With this scenario, it can be estimated that it is a good option to invest in this

currency to get profit in the future when the value of this currency would be increased.

2. The long-run impact of investing in cryptocurrency

The value of cryptocurrency in the market is not stable. It is fluctuating with the demand

and supply of this currency in the market. Some many dealers and individuals buy and

sell this currency to earn a profit from its value. However, the current trend shows that in

the future the use of this currency would be increase. So, investing in this currency can

36
be beneficial for the long run in the future when there would be a significant amount of

difference between the current value and future value of this currency in the market.

People who want to invest for a short-term period cannot expect any benefit from

investing in cryptocurrency.

3. Benefits for business by investing in cryptocurrency

In the case of any business is investing in cryptocurrency, this digital currency would be

a current asset for the business. Unlike the typical paper currency, digital currency is

getting more and more value over time. If a business keeps the paper money in the form

of the current asset it will be the value after a specific period, while keeping digital

money would provide more value to the business in the future. So, it is very beneficial

for businesses to invest in this digital money to get profit in the future and make it a

long-term business plan. Also, cryptocurrency is very easy to store and maintain and

there is no risk of losing or stealth of this money. It is also very easy for a business to

make transactions from this money by using online platforms.

4. Threats or risks that are present in investing in cryptocurrency:

The major threats and risks related to cryptocurrency are changing the policies of

governments of the countries. If the governments of the countries do not accept this

currency as a valid alternative to currency then it would have no value at all. Also, there

is no guarantee that the value of this currency will increase in the future. With the

advancement in technology, there can be the development in hacking or stealing this

currency at online platforms. It is difficult to find a trail of this money, that is why this

currency can be used in criminal or illegal activities as well.

37
 Conclusion

With the increase in technology, everything is shifting towards a digital platform and

using technology. Cryptocurrency is also a product of advanced technology that is based

on digital information and data. This report has highlighted the benefits and importance

of cryptocurrency along with its scope and expected value in the future. This report is

also suggesting that investing in cryptocurrency for the long run in the future can be

beneficial for individuals as well as for businesses. There are many different benefits of

using this currency, it is secure and safe and cannot be lost or stolen. The value of

cryptocurrency is based on the demand for this currency in the market. In the future, it is

expected that the demand for this currency will be increased so the value of this currency

will also be increased in the future. There are also some risks and threats associated with

this currency as well. The major risks are related to changing policies of the government,

uncertain value of this currency, and use of this currency in criminal activities.

Practical and theoretical implications

This research is very significant due to the practical and theoretical contributions it has

made. First of all, theoretically, this research is enriched the literature available on

cryptocurrency which is almost a novel idea. Multiple aspects of cryptocurrency have

been discussed in research thus added to the existing knowledge on this newly emerging

investment. This paper also adds new information to the financial aspects of the business

by discussing the risk and benefits of cryptocurrency investment. As cryptocurrency has

gained the attention of people all over the globe, therefore, the theoretical significance of

38
this research cannot be overlooked. While on the other hand, the practical contribution

of the research is also present. The people who are already dealing with cryptocurrency

and its investments can gain in-depth insight into cryptocurrency. It will help them to

manage in developing their business by understanding the risk associated with it. Along

with the people who are already present in the cryptocurrency market this research is

also helpful for the people who have the intention to step in. It will help them to analyze

cryptocurrency as an investment opportunity and guide their decisions of investing or

not.

Limitations

Although this research has several Practical as well as theoretical implications still it is

limited in few aspects:

 First of all the sample size of the research was so small that does not

represent the population of the study. The sample size should be large

according to the scope of the topic.

 Secondary analysis has been conducted from the perspective of qualitative

analysis. But interview of the field expert has not been present in research.

 Only descriptive statistical analysis has been conducted in the research. The

descriptive statistical analysis is not enough to give in-depth insight into the

topic.

 The framework of the research was also very weak and it does not establish

any mediator for moderating variable to support the topic.

39
  The items of the questionnaire were also made by the researcher and it has

not been adopted from any published research work.

Recommendations:

Following are the recommendations of the research that will guide the direction of future

researches:

 In future researches the sample size should be increased. It should be

approximately 400 to 500 so that the population can be represented effectively.

 Also in the upcoming research interview analysis techniques should also be

included. Field expert interviews can increase the significance and birth of the

research.

 Also in the future inferential statistics techniques should be implemented along

with descriptive statistics. It will clarify the topic more effectively.

 Another addition that can be made in future research is to strengthen the

framework of the study by adding some mediating variables like risk analysis are

moderating variables.

 Final recommendation for the upcoming research is their items should be

increased and must be adopted from the research work of any scholar. It will

create an impact on the research.

40
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