Olet1208 : Cryptocurrency : Perform Assessment Answers

Answer:

A crypto currency has been defined as a digital asset which has been designed to perform as way of currency exchange. Crypto currency is that form of virtual currency which utilizes the control in decentralized form so as to confront the centralized electronic system of money exchange or the system of having the central banking. The decentralized control of each crypto currency uses a block chain technology in the manner that the transaction saves in the database on continuous basis. (Cermeño, 2016).

Nowadays crypto currencies are gaining the popularity for not only in the domestic industry but also for making the payments internationally across the globe. Fast, secure, low cost and authenticated international payment system motivates corporate houses as well as individuals across the globe to keep in view the uses and benefits of the crypto currency settlement system. In the current scenario, the most famous and prevalent crypto currency is bitcoin. Its main competitors are lit coin, ethereal and ripple (Salviotti, 2018).

By having the bit coin as the currency, the settlement system has almost changed. It is because now the individuals will not be required to carry the multiple currency accounts rather they will make the payments across the globe just like the central banking system and which results in the easy settlement of the transactions without any basic hurdles. There will be the reduction in risk of having the credit based business as all the transactions will be settled within that time only and there will neither be delay in any means.

In the current scenario, bit coin has gained the so much popularity that everyone wants to deal into this currency as it has removed the hurdles in settling the transaction and because of which the bit coin is at the peak in the world of finance and banking and accordingly the investors have started purchasing these bit coins from the financial market in order to have the financial gains in the future (Nguyen, 2016).

The settlement though very easy but it can only be done in the larger transactions and not in the smaller transactions. It is because of the fact that the bit coins are being exchanged in lieu of the metals which are precious in nature or the diamonds like material. Therefore, there is need of having the centralize system so as to get the bit coin also included in having the smaller transactions entered. It is because of this disadvantage of the settlement, these crypto currency are being used as the technique only in order to have the manifold increase in wealth of the investor.

Some countries have declared the crypto currency as the one of the mode of payment which included the Russia and Japan and etc. In some countries these crypto currency has been placed in lieu of stock certificate and some corporate are using as a tool in the process of the making the IPO’s (initial public offering).

Thus, in this manner, it can be said that the crypto currency will become the part of the financial landscape in future (Pilkington, 2018) .

Referance:

Cermeño, J.S., (2016), “Blockchain in financial services: Regulatory landscape and future challenges for its commercial application”. BBVA Research Series, 21 (1), 32-39.

Nguyen, Q.K., (2016), “Blockchain-A Financial Technology for Future Sustainable Development” In Green Technology and Sustainable Development (GTSD), International Conference on . 51-54

Pilkington, M., (2018), “The Emerging ICO Landscape-Some Financial and Regulatory Standpoints”, Accounting review, 224(5), 29-45

Salviotti, G., (2018), “A structured framework to assess the business application landscape of blockchain technologies”. In Proceedings of the 51st Hawaii International Conference on System Sciences.