Understanding Blockchain and Cryptocurrency

The provided assignment is a comprehensive study on blockchain and cryptocurrency. It covers various aspects such as the history and evolution of cryptocurrencies like Bitcoin, Ethereum, and others. The document also delves into the technical and economic implications of these digital assets, including their potential impact on financial transactions, monetary stability, and global economies. Additionally, it explores the security threats associated with cryptocurrency and blockchain adoption. Furthermore, the assignment includes a set of questions to assess knowledge about cryptocurrencies, their use as a medium of exchange, and their impact on the economy.

Running head: ARE ONLINE CURRENCIES SUCH AS BITCOIN AND ETHEREUM THE
FUTURE OF MONEY OR JUST THE NEW GLOBAL FINANCIAL CRISIS
Research Topic: Are online currencies such as Bitcoin and Ethereum the future of money or just
the new global financial crisis
Name of the Student:
Name of the University:
Author’s Note:

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Abstract
This paper has been constructed in order to have an understanding of the applications of the
crypto currencies in the real practical world. The thesis creates an explanation on the crypto
currencies and how these frameworks are segmented. The literature review explains the
suggestions and the comments that have been provided by several researchers. The methodology
has indicated the data that is collected and which are suitable for the research and thereafter an
idea can be attained with respect to the use of the data with the help of which the results that are
desired by the researcher can be obtained. The results that have been obtained addresses the fact
that crypto currencies like Bitcoin and Ethereum can improve the economy of the world and
thereby these currencies can used for future money.

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Table of Contents
Chapter 1: Introduction....................................................................................................................5
1.1 Background of the Study.......................................................................................................6
1.2 Purpose of the research........................................................................................................10
1.3 Research Aims.....................................................................................................................10
1.4 Objectives of the Study........................................................................................................11
1.5 Research Questions..............................................................................................................11
1.6 Scope of the Research..........................................................................................................12
1.7 Research Limitations...........................................................................................................12
Chapter 2: Literature Review.........................................................................................................13
2.1 Introduction..........................................................................................................................13
2.2 Crypto Currencies................................................................................................................13
2.3 Definition.............................................................................................................................14
2.3.1 Bitcoin...........................................................................................................................14
2.3.2 Wallet............................................................................................................................16
2.3.3 Bitcoin Exchanges........................................................................................................17
2.3.4 Ethereum.......................................................................................................................18
2.3.4 Wallet............................................................................................................................20
2.3.5 Smart Contracts............................................................................................................20
2.4 App Platforms based on Blockchain....................................................................................21

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2.5 Crypto currencies and their benefits and risks.....................................................................22
2.6 Crypto currency as a currency.............................................................................................24
Chapter 3: Research Methodology................................................................................................25
3.1 Introduction..........................................................................................................................25
3.2 Method Outline....................................................................................................................26
3.3 Justification for the choice of the methodology..................................................................26
3.4 Research Onion....................................................................................................................27
3.5 Research Philosophy............................................................................................................27
3.6 Research Approach..............................................................................................................28
3.7 Research Design..................................................................................................................29
3.8 Process of Data Collection...................................................................................................29
3.9 Quantitative Data.................................................................................................................30
3.10 Primary Data......................................................................................................................31
3.11 Secondary Data..................................................................................................................31
3.12 Sampling and Sample Size................................................................................................31
3.13 Data Analysis.....................................................................................................................32
3.14 Ethical Consideration.........................................................................................................32
Chapter 4: Data Analysis and Discussion......................................................................................33
4.1 Introduction..........................................................................................................................33
4.2 Frequency Analysis.............................................................................................................33

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Answer to Question No 1......................................................................................................33
Answer to Question No 2......................................................................................................34
Answer to Question No 3......................................................................................................35
Answer to Question No 4......................................................................................................36
Answer to Question no 5.......................................................................................................37
Answer to Question No 6......................................................................................................39
Answer to Question No 7......................................................................................................40
Answer to Question No 8......................................................................................................41
Answer to Questions No 9.....................................................................................................42
4.3 Descriptive Statistics...........................................................................................................44
4.4 Correlation...........................................................................................................................45
4.5 Discussions..........................................................................................................................47
4.6 Summary..............................................................................................................................47
Chapter 5: Conclusion, Recommendation and Future Work.........................................................49
5.1 Conclusion...........................................................................................................................49
5.2 Recommendation.................................................................................................................54
5.3 Future Work.........................................................................................................................55
Reference List................................................................................................................................56
Appendix........................................................................................................................................67

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Chapter 1: Introduction
The crypto or the virtual currencies in the current time period have become and practical.
The process is no longer a monopoly of the money that was used in order to buy contents that are
digital in nature but this aspect has observed significant development towards the society in
which the virtual money can be utilised in order to buy tangible services and goods (Hayes
2017). “European Central Money” addresses the process of virtual or crypto currencies as the
digital money that is not regulated and its application and roles are several among the industrial
sectors that are functional all over the globe. In the present time period, the schemes related to
crypto currencies are an alternative to the several processes of micro payment services that are
inclusive of the use of debits and credit cards and other various prepaid solutions for several
service providers and thereby this has been influencing the answer for the companies to
undertake events that would lead to customer loyalty. The organizations that have been looked
upon as the bigger players of the market are looking to take the benefits of the crypto currencies
that was available earlier in the gaming sector and in the frequent flying programs.
The development and innovation in the crypto currency processes and techniques has
created complex processes, which has led to several problems and threats. Gandal and Halaburda
(2016) addressed that crypto currency can create several practical issues in the global economy.
As it is seen that these kinds of currencies are functioning outside the real regulatory frameworks
in most of the nations, numerous sectors like the banking industries and telecommunication
industries are facing difficulties of how and when to go ahead with the process. The official and
the legal aspects that looks into the aspect of trading and issuing of trade in accordance to crypto
currencies are observed to be a new sector and therefore is in a requirement of specific kinds of
interpretations and it is observed that the issuers as well as the retailers needs to come under the

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extensive legal reproaches that is reliant on how the currency is applied. Dyhrberg (2016)
expressed that there are several stories that are associated to the accomplishments of the crypto
currencies in accordance to the strategy of monetization in order to create a specific profit level
and it is observed that the level of interest is considerable high during the time of the
development of the innovative solutions.
Eagar (2016) cited that this aspect is a new area and therefore there are new companies
and players in the market who are coming from several other industries in order to discover new
opportunities in order to expand their level of business. For instance, the area related to the
payment through mobile is related closely with the crypto currencies and it is observed that
transfer through electronic money is very close to the process of crypto currencies.
Delmolino et al. (2016) addressed that crypto currencies provide a very effective
opportunity for numerous industries in the present scenario however, in order to provide
extensive information to the companies that demands more of these information. On the other
hand, the materials that are accessible on the crypto currencies in the current time period is
distributed all over the internet and there have been numerous trials in order to explain the crypto
currency process. This method may be supportive in mitigating the gap that is existent among the
current global economy and the crypto currencies with the help of the development of
frameworks and models for the purpose of assessment.
1.1 Background of the Study
In the past decades crypto currencies are looked upon as the fictional money and this sort
of money was used generally in the gaming sector but there have been numerous researchers
who have debated that this kind of money is gaining power and can create a challenge to the

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actual paper currencies that are authorised by the government of different countries. The
definition of the crypto currencies has been known to be money that is not regulated and are
digital in nature and are intangible and this money is used for buying virtual goods from the
gaming companies. In the current time period, one of the most attractive factors is that the trend
of the crypto currencies are expanding and therefore are moving out of the virtual aspect and
therefore is being used in order to buy services and products that are tangible in nature. Dallyn
(2017) explained that the utilisation of crypto currencies have been limited to a specific level but
with the initiation of the branded companies who are creating their own crypto currencies, the
researcher has created a debate that it would have an extensive impact on the economy of the
actual world in the future course of time. Hence, it can be explained that crypto currencies are
becoming real.
The theory of crypto currencies is related to the days when internet was initiated and
during the time of the initial events related to customer loyalty in which one attained the
motivation for functioning for a specific company. Carrick (2016) explained that anything that as
a virtual value can be looked upon as crypto currencies. In the process of crypto currencies, there
exists no association among the practical world and the crypto currency and the money that is
created is saved within the fictional world itself. Brown (2018) explained that a small amount of
the crypto currencies are purchased by taking assistance of the real world money and this crypto
money is used by distinct companies or for the purpose of software based applications. The rate
of exchange is only valid in order to buy the crypto currencies as the money is not transferrable
but is exchanged with the real again at some point of time. However, on the other hand, the open
loop based crypto currencies can be exchanged the way real currencies are done and they have
the exchange rate for the purchase and sales of the currency.

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Bitcoin and the idea of crypto currencies in the current time period have become one of
the key topics of research in the current time period. Begušić et al. (2018) discussed that of a few
years ago digital currencies were looked upon as a “bubble” but in the current time period,
everyone is concentrating on how it needs to be regulated and connected with the conventional
money process and how to get accustomed to this scenario. Uncertainty towards the validity of
Bitcoin and crypto currencies has not decreased with time but there has been a rise in people who
are in support with the crypto currency process. These aspects have been fundamental in creating
this topic a vital trend in the current global economy.
The new and the innovative theory incorporates their own principles and beliefs which
are inclusive of the protocols that are decentralised, non-limiting transactions, lower level of
fees, breaches in the security, low rate of implementation and these issues have become the
significant issues that are related to crypto currency.
In the year 2009, Bitcoin was established and this was the first crypto currency. The
process makes use of the transactions that are peer-to-peer and is reliant in the open source
software known as Bitcoin Core. The open source code of Bitcoin leads to the development of
the crypto currency network and hence there are several alternatives for Bitcoin in the current
time period. The alternatives that are known to Bitcoin are Ethereum, Litecoin and Ripple and
each one of them have looked to improve the theory of crypto currencies by bringing in new and
innovative features (Ali et al. 2016). This paper has looked to assess Bitcoin and Ethereum as
these are two that have the largest trading volumes and market capitalisation. Furthermore,
Ethereum has introduced a platform that is block-chain based and this has becomes a foundation
for huge number of altcoins and applications that are decentralized, which is unlike the other
processes like the Lite coins that are oriented primarily to act for the network for the payments.

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Crypto currencies are becoming a key substitute to the current, conventional money and
therefore now it is not only a software process but is an approach that is completely digitalised
with respect to money. During the past few years, this process has been assisted by the societies
that have been enthusiastic and there has been a development of ideology on this approach even.
The assessments have been able to express the factors that have been behind the development of
the network along with their impacts on the aspect of the customers.
The theoretical section related to this topic is disclosed and assessed in order to attain the
aims and objectives that are related to this paper thereby assisting in giving out an insight on
Ethereum and Bitcoin along with their innovative features and the extensive technology related
to the blockchain (Fry and Cheah 2016). It would even explain that each of the two currencies
have been explained in an explicit manner. The Blockchain technology is assessed and is
addressed with the help of which the issues and the benefits related to crypto currencies along
with their probable development and potential use among all the sectors and their industries
would be known in an effective manner.
The analysis that is macroeconomic in nature is addressed with the help of the overview
of the value transformations of the currencies, their associated prices and the history of their
market capitalisation and the regulations that are implied towards the crypto currencies. The
views of the new and innovative trade theory with respect to the concept of crypto currencies are
even disclosed and are explained (Décourt et al. 2017).
The process of crypto currency is a difficult and a complex process and therefore
attaining information and understanding of the nature of the market and the interactions among
the crypto currencies and the real world currencies becomes a much more harder issue because

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with the help of this an understanding as to crypto currencies are beneficial for the economy or
can lead to financial crisis for a nation or the world as a whole can be known in an explicit
manner. This thesis will be supportive in creating knowledge and understanding of crypto
currencies and how it can bring in monetary stability and can be a beneficial or a threat to the
economy of the world.
1.2 Purpose of the research
The actual intention of this thesis paper is synthesizing and the reviewing the present
understanding and knowledge in order to create a new outcome that is with respect to the current
and the future development of the crypto currency methods. The idea is to bring in certain
additional current researches that are academic in nature by creating an enhanced structure and
network for the purpose of assessing the entire crypto currency aspect globally. Therefore, the
primary deliverance of the thesis is to fill in the gaps that are present between the several kinds
of crypto currencies and thereby make use of frameworks and models for assessing and
categorising the crypto currencies. It is observed that most of the researchers have focused on the
explanation of crypto currency and how it functions in the present world in accordance to the real
world paper currencies.
1.3 Research Aims
The thesis has the aim of assess whether the crypto currencies and in this paper Bitcoin
and Ethereum are essentially the future of the money or this kind of currencies would a threat or
a financial crisis for the actual world. This replicates that the present paper looks to undertake an
analytical assessment of the potentiality of the crypto currency. In the same manner, the present
paper even looks to assess the applications of both the conditions that are inclusive of the
comparative assessment of the crypto currencies that can have negative and positive after effects.

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Furthermore, this can be helpful in assessing the way it can establish a theoretical shift in the
entire economic condition. The concept of crypto currency has been a hot topic because of the
various factors and in the current time period when there are several countries that are making
use of these kinds of transactions, the necessity has increased in order to have an understanding
of whether crypto currencies are beneficial for the society or is brining financial issues that may
lead to financial crisis globally. The results that would be obtained would be helpful in
determining whether the countries which have incorporated this currency and the countries who
have not incorporated this currency are facing benefits or losses. Hence, this thesis paper tries to
assess the key and primary features of crypto currencies, changes in the crypto currencies,
diversified implications along with the outcome for understanding their effect from the point of
view of the economy.
1.4 Objectives of the Study
The specific objectives that have been recognised for this thesis paper are given as follows:
 To critically assess the features of the crypto currencies, their alterations, various
implications along with the outcome it would attain
 To assess the opportunities and the threats related to Bitcoin and Ethereum currencies for
gaining knowledge about their impact and influence on creating a shift of the financial
theories either for the good or for the bad.
1.5 Research Questions
The research questions are related to the questions that would be assessed by the
researcher with respect to the topic with the help of which an effective understanding can be
known so that the benefits and the threats of the crypto currencies namely Bitcoin and Ethereum

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can be known in an effective manner. The research questions associated to this paper are given
as follows:
Q1. What the primary features of crypto currencies like Bitcoin and Ethereum their
developments, implications as well their results?
Q2. What are the various characteristics of opportunities and threats of Ethereum and Bitcoin
that can compel an influence on the economic paradigm as a whole for the better or for the
worse?
1.6 Scope of the Research
The scope of this thesis paper is limited to take care of the aspects that are related directly
to the crypto currencies and not in the aspects that are associated to the applications of the
mobile. The research background of this topic is related to the gaming sectors and thus data can
be gathered in this thesis and this will not be the main perspective of the research. Furthermore,
several other technologies that are related to crypto currencies like the cryptographic
technologies can be utilised for specific crypto currencies so that effective knowledge and idea
can be reached with respect to monetary stability.
1.7 Research Limitations
There are several restrictions tries to create a limitation for the preparation of the thesis in
a precise manner and it is observed that the researcher has looked to assess the primary data that
is attained effectively so that they can assess effectively the information collected in accordance
to this topic. One of the key limitations has been the absence of time and not enough knowledge
regarding crypto currencies and its significance in the actual world.

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Chapter 2: Literature Review
2.1 Introduction
The section of the review of the literature has been constructed so that it can handle with
the several definitions that have been disclosed by numerous researchers in accordance to crypto
currencies and its impact that is positive or negative in the stability of money in the worldwide
economy. Crypto currencies along with the paper currencies can stay together if they are
constructed and framed in an effective manner. The literature even explains the several elements
like the meaning of crypto currencies and their several features.
2.2 Crypto Currencies
Crypto currencies have become a phenomenon recently in the current time period. The
developments and the jumps in the Bitcoin value that initiated in the year 2008 have intrigued
and astonished the consumers while the instability of the currency made the consumers more
concerned about it. The development of Bitcoin has led to the development of the network of
crypto currencies: new kinds of coins like the altcoins have looked to develop and it has started
to incorporate new and innovative features while maintaining the same basis for the blockchain
(Krafft et al. 2018). Because of the facts that have been mentioned earlier, it is vital to give the
readers with the key features, background and thereby explains the key crypto currencies in order
to move ahead with the assessment process. This section would look to address all the essential
information with respect to the crypto currency concepts along with the key features of Bitcoin
and Ethereum.

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2.3 Definition
Ethereum and Bitcoin are from the convertible virtual currencies (CVC). This acts as a
subset of the crypto currencies but has been established with the overall intent. The exchanges
that are made online can be observed as the brokers and the agents and this is utilised to transfer
the crypto currencies to the normal currencies. CVC associates to the schemes of the crypto
currencies with a flow that is bidirectional in nature. This suggests that one can sell and buy
CVC with respect to the exchange rates: the worth of the crypto currency is reliant on the digital
functions that are undertaken by the ones who are using it.
Bitcoin and Ethereum along with being CVCs are coming within the group of the crypto
currencies. The crypto currencies are the kind of the digital currencies that make use of the
cryptography. It provides the currency with the technique of encoding that is helpful in
safeguarding the transactions that are undertaken by the users (Le 2017). The approach that is
taken for the regulation of the Ethereum and Bitcoin is similar because of their general
classification. Hence, gaining knowledge with the regulations created with respect to Bitcoin and
Ethereum will disclose the general inclination of handling with CVCs with respect to individual
use taxation and general practices.
2.3.1 Bitcoin
Bitcoin is looked upon as the peer-to-peer procedure and communication that assists the
payment system and the usage of the crypto currency. Bitcoin was incorporated in the year 2008
by certain anonymous developers. Even though the theory was addressed in the year 1998, the
practical implication was seen in the year 2008 and in the year 2009, when Bitcoin price was
lower than “1 cent” the crypto currency has developed in the current time and the price has
ranged to 15000 dollars for a single Bitcoin.

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Bitcoin has been expressed as a decentralised blockchain based crypto currency that
explains that every transaction are recorded and disclosed in the publicly distributed online
ledgers. It provides the peer-to-peer with effective rapid transfer of money globally provided
with extensively lower level of transition costs. As explained that it is a decentralised mode of
currency in other words there are no core authority that is recording the new users and thereafter
keeping record of their transactions as long as it is done by the technology of blockchain (Li and
Wang 2017). Bitcoin are enhancing into circulation with the help of mining and this explains that
mining is helpful in providing Bitcoin supply within the network.
The development in the value of this kind of crypto currency has created a lot of disbelief
on it. This is one of the most of the debated topic and this was initiated in the year 2013 when
there was massive rise in the value of the coin from 14 dollars to 935 dollars. There are
arguments that are still existent, but Bitcoin is within the financial system and several countries
have been incorporating regulations related to crypto currencies.
Crypto currencies, especially Bitcoin has been looked upon as the answer to the financial
crisis that took place in the year 2008 and failure of the central banks to handle it. As it is seen
that Bitcoin is decentralised and anonymous, challenges to its growth have been initiated and the
instances have been theft, money laundering, speculations etc. Hence, in order to control and
regulate the crypto-network, government of various countries globally have incorporated
regulatory plans and policies (Liedel 2018). The regulations are different in respect to the area,
while on the other hand certain countries have restricted completely the usage of the crypto
currencies and there are other countries that have looked upon crypto currencies as a medium of
exchange.

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Even though protocol of Bitcoin is making use of the sophisticated and developed
concepts of technologies there are still numerous mechanical issues, restricting and impacting the
large incorporation of the crypto currency. Hence, the society and the miners are looking to
enhance it with the help of the several updates related to blockchain. Bitcoin is reliant on a
specific software-Bitcoin Core- that can be enhanced with the “Bitcoin Improvement Protocol”
(BIP) that is recommending some mechanical alterations to the software that is related to
blockchain. In order to incorporate BIP it requires to be locked in and thereby explaining that
any transformations that are implemented by the miners should be assisted by the economic
development. These kinds of concepts have driven the community to a better level of arguments
because of the contradictory views with respect to the future development of Bitcoin.
2.3.2 Wallet
The digital alternative to money led to digitalisation with respect to the associated
techniques and one of them is the digital wallet which is a software tool that is storing and
gathering the crypto currency that is acquired. Instead of gathering money, the digitalised
software programs that is storing private keys for the addresses of the Bitcoin as long as the
electronic coins are observed as a chain of signatures that are digital in nature.
There are four key types of digital wallets and they are mobile, web, hardware and
desktop. Web type is functioning with the help of the browsers and therefore can be used in the
mobile and in desktops. The desktop is looked upon as a software program that can be
downloaded and this is creating the addresses of the Bitcoin for the purpose of transactions along
with preserving private keys for the Bitcoin addresses and these programs provide full authority
over the functions as well as innovative privacy level (Morgan 2017). Hardware is the most
restricted kind of a wallet that provides an increased safe storage of the private keys in order to

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shorten and this hardware can be looked upon as a memory stick that is functioning unique
software. The mobile wallets are similar to the desktop ones and this software that is installed in
the phone provides increased level of control over the money and even maintains a general level
of privacy.
There are numerous providers of digital wallets for each kind of wallets. There exists a
variation among the providers with respect to the control over the wallet, extent of privacy,
environment security, transaction fees etc.
Even though the extensive variety of digital wallets have been explained, it is even
essential to store the Bitcoin in the paper wallets. This can be explained by the fact the addresses
of the Bitcoin and the private keys are printed and physically saved. Due to various kinds of
probable challenges, like the frauds related to transactions, cyber-thefts, doubt towards the digital
wallets and malware, this kind of way of preserving the Bitcoin is regarded to be the safest and
secured one (Ong et al. 2015). Conversely, because of the general practises of crypto currencies
trading, some may look to make use of the crypto exchange account in order to preserve their
assets, even though it is not regarded as the safest process of preserving the digital currencies.
2.3.3 Bitcoin Exchanges
The crypto currencies and the Bitcoin can be purchased from numerous exchanges of the
digital currency. In the current time period there exists an extensive kinds of exchanges that are
experienced in CVCs and other aspects. In order to initiate the purchase of the Bitcoin, one needs
to register in the website of the exchange, which is generally followed by the process of
authentication, which is the process of forwarding the ID copy and the details of the address after
which one is able to deposit the paper currency. Once the money is transferred to the balance of

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the crypto exchange, an individual may purchase and sell the crypto currencies that are available
to them. These methods are obligatory for most of the exchanges and the process of verification
may depend on the reliability of the exchange.
Contrary to the scenario that is in accordance to paper money, the rates of the crypto
currency exchange may fluctuate between the other exchanges. It can be addressed with the help
of the increased sensitivity of the crypto currencies. There can be an impact on the prices by
these distinct data as the volume of exchange, entry price and market size and currency trade
along with impacted by the technical, economic and the factors related to the media (Pasztor
2018). Hence, specific exchanges are positioning themselves to the leading scenarios and thereby
experiencing in the transactions of the distinct currencies or areas.
2.3.4 Ethereum
This is a platform that is decentralised in nature and assists in the smart agreements by
relying on the technology of blockchain that has a “built in Turing Complete programming
language”. This platform was incorporated in the year 2013 and later in the next year, these
projects got assistance from crowdfunding and in the year 2015, the system was disclosed in
public. This platform is looking to enhance the ideas and the concepts brought by Phillips and
Gorse (2017). The Ethereum platform is making use of currency within the network, which is
known as Ether. The ether coins are utilised in order to pay for the assessments used for the
purpose of EVM (Ethereum Virtual Machine). The founding unit of Ether is “wei, 10^-18
Ether”. From the year 2014, the price of Ethereum has increased from “$0.1 to $1100” for each
Ether.

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Similar to Bitcoin, Ethereum is a protocol that is based on blockchain. Conversely,
Ethereum has developed blockchain by making it programmable and therefore it can be said that
it is not a pre explained process and permits the users to generate functions of various
complexities. Acting as a platform and looking to become a common technology for
communities and implications etc, Ethereum permits their users to generate several implications
that exclude the crypto currencies faults and limitations.
EVM is even looked upon as the essential Ethereum technology, which is similar to the
Bitcoin Core and EVM aims to make use of the code of the complexity of algorithm. For the
creators, EVM permits the creation of the applications that are stated down in the language of
programming that is compatible with the EVM (Pittman 2016). EVM is even looked upon as the
essential innovations for the world of crypto currencies and the software that is competent to the
numerous languages of programming and which is assisting the developers to function the
application on the single platform instead of establishing numerous distinctive blockchains. In
this manner, the development of the applications is able to meet the essential benefits of the
technology of blockchain like the security, transparency and the minimisation of the downtime.
The potentiality of the platform of Ethereum has incorporated increased level of interest
from numerous sectors that are inclusive of the governmental sector, media, banking, voting and
transporting and every one of these sectors are capable of enabling swift automation by making
use of the solutions of blockchain (Ruwitch and Kelly 2017). Furthermore, this platform brings
in extensive applicability for the crypto currencies and the significant issue for the Bitcoin has
been its usage in the sector that has nothing to do but making speculations and it is seen that
growth of Ethereum is made sure by the development of the applications by depending on Ethos,
which is an operating software created by EVM.

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2.3.4 Wallet
It is seen that similar to Bitcoin, in order to make use of Ether, there is a requirement of a
digital wallet. Due to the purpose of trading, Ether assists in storing and is utilised directly with
the help of the exchanges related to crypto currencies like the Poloniex, Binance, Bitifinex,
Kraken, Wex etc. With the creation of the account on the exchanges, the digital wallets for the
currencies that are traded are created by permitting to purchase, transfer and store the selected
crypto currency.
It is seen that generally the significant difference among the Ethereum wallet and the
wallet of Bitcoin is the probability of preserving the other crypto currencies rather than only
Ethereum. These characteristics are possible because of the fact that this is a platform and the
virtual currencies reliant on Ethereum blockchain can be persevered by the wallet that has been
recognised. Furthermore, the wallet gives the users with the templates for the purpose of general
structuring (Sapovadia 2015). At the end, it can be said that the templates that are associated with
the smart agreements are given out by the wallets and in this manner the smart contract can be
coded in a simpler manner by the programmers who are amateurs.
2.3.5 Smart Contracts
The word smart contracts was introduced initially in the year 1997 and these contracts are
looking to provide safe and secured hardware and software based solutions and thereby
formalising the association among the parties who are undertaking the contract. In this manner,
the cost of transaction is minimised and cut partially due to the direct activities of the parties
without making use of the third parties to initiate the agreement.

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Even though technology is in need of additional growth and enhancements, the interest
towards the agreement has been developing among the numerous segments. With the
collaboration with the team of Ethereum, the financial organizations, private companies and the
governments are maintaining development and the creation of the idea of the smart contracts
(Sontakke and Ghaisas 2017). This may additionally have an impact on the labour market and
thereby lead to shifts in the market due to the increased level of the technological disturbances
and partial automation of the industries.
As the applications and the technology of the process are still at the initial phase, the
regulations that are towards the smart agreement can be anticipated. Distinct consumer protective
aspects are likely to be followed in the smart agreements (Tarnopolski 2017). There are
numerous organizations and governments globally who have shown their intensions for the
assessment of the technology of blockchain as well for the method of regulating the market of
the crypto currency in the coming future.
2.4 App Platforms based on Blockchain
Like the way Bitcoin incorporated the concept of blockchain and its implications,
Ethereum has confirmed and developed the idea. Acting as a platform for the app is enhancing
the progression of the entire market and is even enhancing its usage within the consumers who
are not even attracted towards crypto currencies. Urquhart (2016) addressed that creating an
assumption of the fact that “bubble” features are generally associated with crypto currencies
because of the lower level of implementation and thee features are developing approaches
towards the crypto currencies in an extensive manner and there are extensive level of public
interest towards these kinds of applications influences the private sector to incorporate
technology.

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There exists a variation in the applications with respect to the sector wise applicability
and it is seen that in the current time period most popular applications associated with the field of
healthcare, ICT and energy. The power and the potentiality that has been understood in the initial
stages of the technology of blockchain are developing with the help of the applications that are
coded by the individual developers or a group of developers. Furthermore, assistance from the
renowned market organizations for instance Visa, Microsoft and MasterCard have been received
and thereby influencing the development of the applications. The applications are disclosing
probable developments and innovations in numerous governmental and public procedures like
the shared economy, recognition of the ecological footprints, voting, mitigation, migration etc.
In order to develop the development of the applications that are decentralised in nature,
there are certain updates of the blockchains like the hard fork that can occur. One of the
instances has been the Ether Zero, a current hard fork, which has been locked on 19th January
2018. Due to the update of the of the innovative Ethereum reliant crypto currency, Ether Zero
was published for the public. EtherZero has aimed to increase the process of payment among the
users of EtherZero by terminating the fees that are levied instantly and incorporating the process
of “instant payment” process.
2.5 Crypto currencies and their benefits and risks
Vigna and Casey (2016) addressed that crypto currencies are related with risks along with
various kinds of benefits. White (2015) cited that the transactions that are initiated with the
assistance of crypto currencies can be more reasonable, faster, secured and transparent. Zulhuda
and Binti Sayuti(2017) has stated that the blockchain technology can be looked upon as a certain
kind of technology that looks to regulate the process of crypto currencies and thereby permits the

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enforcements of law to be implemented in a simpler and in a much transparent manner and hence
it rectifies the problems of administering the supervisors.
Kurihara and Fukushima, (2017) stated that there are specific risks that are related to
crypto currencies. Lansky (2016) has provided the precise explanation that crypto currencies
generally do not safeguard the customers and there are even risks and threats in accordance to the
platform stability, volatility in their prices and traditional cyber threats which includes losses,
hacking and thefts.
Laskowski and Kim (2016) has explained there are distinct kinds of crypto currencies
that have always been associated with the activities that are known as illegal that is inclusive of
the trades of the illegal goods and money laundering. The essential factor has been for the fact
that these kinds of transactions can be initiated in an anonymous manner. However, the
researchers have cautioned the market analysts not to over anticipate these risks.
Kimet al. (2016) has expressed that cash transactions are likely to be a process that is
more anonymous with respect to the transference of values as the strong level of ownership for
the crypto currencies are the general public and that allows an extensive level of assessment of
all the transactions. This procedure has even been rationalised by Khuntia and Pattanayak (2018)
who expressed that it is easier to recognise the crimes in the crypto currencies than the crimes
that take place with real currencies and even cited that with the use of new and improved
technologies and tools crypto currency has been able to minimise the extent of hacking as the
leading companies have been utilising this process of transactions by complying with the
internationally framed standards and even maintaining developed security systems.

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2.6 Crypto currency as a currency
Jiang and Liang (2017) explained that most of the rules and regulations that are
associated to most of the worldwide countries have been unable to define the word “currency” in
terms to a process that assists in the explanation of the fundamental alternatives but on the other
hand relates the word a medium of exchange. There are numerous users who have been asking
for the framework for taxation of all kinds of financial transactions that are related to the crypto
currencies but it is not for sure that crypto currency can be looked upon as the actual currency
from the legal perspective. The knowledge and the notion of currency still remains unclear in the
minds of most of the researchers and the individuals and hence the fact that is vital to remember
is that crypto currencies are the type of currencies that have been created without the legal tender
status and without the presence of a monitoring from a body that is neutral centrally.
There has been an observation that in numerous ways, crypto currencies are similar to the
national currencies and the electronic money but distinct significant elements have been
differentiated among all of them. For instance, the industries and the companies that are
associated with the electronic money are not able to create the time schedule about the fact that
the money that is used is true and authentic. This on the contrary is a scenario which is disclosed
with a distinct span of time for the deliverance of the value.

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Chapter 3: Research Methodology
3.1 Introduction
The collection of the data and the assessment has generally been undertaken by utilising
the primary data that is available from the respondents. The secondary data has been exploited in
the most minimum manner so that effective idea and understanding can be accomplished. The
data collection has been possible by utilising various sorts of considerations, which have been
created by the researcher by taking assistance of the survey analysis questionnaire. The
methodology section of the thesis looks to explain the kind of data that is ideal for this topic and
the sort of data that would be collected by the researcher in order to complete the paper in an
effective manner. The methodology section would even highlight the tools and the processes that
would be used with the help of which the collected data can be taken forward for the purpose of
data analysis. The researcher in this paper would be identifying the methodology that will be
used, the outline that would be undertake, the approach of the research in accordance to the
research philosophy and the design of the research. Thereafter the researcher would highlight
the sampling process and the size of the sample with the help of which the data collection
procedure would be addressed and accordingly responses would be collected that would be used
for the purpose of analysis (Haand Moon 2018). The primary data that would be collected would
be undertaken with the help creating a questionnaire, which would be forwarded to the
participants and thereafter effective level of data can be collected for the purpose of data
analysis.
The secondary data would be collected by taking assistance of the secondary sources and
the information related to crypto currencies are available from the several internet websites
where information related to crypto currencies can be collected and accordingly the analysis of

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the data can be undertaken. The secondary data is even collected from the journals and articles
that have been framed by other researchers in accordance to similar topic.
The attainment of the data has been collected by taking assistance of 50 selected
respondents who have answered to the questionnaires that have been forwarded to them. The
respondents are selected from the point of view that these people have access and make use of
the framework of crypto currency.
3.2 Method Outline
The procedure of outlining the process is undertaken by the researcher and therefore the
researcher has looked to focus on the aims and objectives that have been constructed earlier in
this paper. The researcher has looked to utilise the most precise and ideal equipment that would
lead to valid and true results for this paper. The methodology therefore chooses the positivism
philosophy, as this philosophy would bring in effective results. The researcher has incorporated
deductive approach and descriptive research design because of the fact that the aims and the
objectives that have been identified in this paper can be attained if these processes are used in an
effective manner.
3.3 Justification for the choice of the methodology
The researchers have the benefit of choosing various kinds of methodologies that are
available to them but the selection of the methodology is dependent on the topic of the research,
the objectives of the research paper and the perspective of the researcher as to which
methodology would bring about effective results. In this manner, in this paper, the researcher has
selected quantitative research methodology and would be making use of quantitative data
analysis because of the fact that the primary data would be collected from the respondents who

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have been selected and the data that would be collected from the respondents would be converted
into figures and numerical so that all the data can be used for the purpose of analysis in an
effective manner and the benefits and the negative impacts of the use of crypto currencies like
Bitcoin and Ethereum as a mode of currency transaction all over the globe in the current period
of time can be known in an effective manner.
3.4 Research Onion
The research onion in the methodology section of the paper has significant functions as
the use of the tools, frameworks and theories by the researcher can be done in an effective
manner. The research onion by taking assistance of the variables that are ideal for this paper in
attaining the outcomes that is desired by the researcher (Hewitt 2015). The numerous layers of
the research onion are all related to the data gathering and analysis process and accordingly the
researcher is able to chalk the process they would use for the collection of the data. This section
of the paper is helpful in understanding the time horizon that is ideally suitable for this paper.
3.5 Research Philosophy
The research philosophy process assists the researcher to discover the essence of the
thesis paper and thereafter selecting and utilising one of the most effective models that are
available. There are four sorts of philosophies that the researcher can make use of and they are
the positivism, pragmatism, interpretivism and realism.
However, with respect to the topic of the current research paper that is related to having
an understanding of the politeness and the negative impacts of the use of crypto currencies like
Bitcoin and Ethereum, it is seen that the researcher finds it is simpler to make use of positivism
philosophy. Positivism philosophy is related to the practical subsistence with respect to the

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collection of the knowledge with respect to the utilisation of the equipment and theories that
have been proven scientifically (Hughes and Middlebrook 2015). As this research paper is
associated with discovering the impact of crypto currencies like Bitcoin and Ethereum, it is
therefore essential to dissect the data collected from the respondents so that understanding
regarding the effective issues can be evaluated.
3.6 Research Approach
The approach of the research is one of the most essential programs that needs to be
undertaken in order to go ahead with the process of analysing the collected data in order to come
up with the desired and the factual results. In this aspect, Hladkykh (2017) suggested that the
approach of the research assists in discovering every footsteps that are initiated in order to
conclude the numerous activities of the research. The researcher has the freedom of making use
of one of the two research approaches that are available to them and they are the inductive and
the deductive approach. The inductive approach refers to the creation of a new and innovative
theories and frameworks that has been constructed for the first time in order to complete the
paper and gain the desired results (Indera et al. 2017). On the other hand, the deductive approach
refers to the use of the models and theories that are already existent in the economy and these
models and frameworks have been used by other researchers.
In accordance to this paper, the researcher has looked to make use of deductive approach
because of the fact that information related to the use and the impact of crypto currencies like
Bitcoin and Ethereum will be collected from the selected respondents and accordingly this data
would be converted in order to discover the final outcome of the paper by making use of the
models and theories that are already existent in the economy and has been used earlier as well.

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3.7 Research Design
The research design addresses the path that needs to be undertaken by concentrating on
the objectives and the goals that have been constructed earlier in this paper. Kazan, Tan and Lim
(2015) has addressed that the design of the research supports in providing the guideline by
assisting the in the end result that is demanded but the research, with the help of which the
overall research can be concluded in an effective manner. The research has the liberty to choose
from three kinds of research designs and they are the exploratory research design, the descriptive
research design and the explanatory research design.
In accordance to the paper that is taken into consideration, which has the intention of
assessing the effectiveness or the limitations of crypto currencies like Bitcoin and Ethereum in
the current transactional process, the researcher has selected descriptive research design. It is
seen that descriptive research design addresses issues and the problems in an extensive manner
and this research is in requirement of the same so that precise outcomes can be attained from the
information that has been collected.
3.8 Process of Data Collection
The data is collected from the respondents is the initial requirement so that this data can
be used for the purpose of data analysis and with the help of which authenticity of the research
can be attained. The data is collected by considering the features of the research and the potential
result that is demanded. LEE, Li and Yu (2017) addressed that the data can be divided into
secondary and primary data. The primary data is gathered by taking assistance of the responses
of the selected respondents and accordingly their opinion regarding the topic that has been taken
into consideration. The primary data is gathered with the help of the survey questionnaire and all
the questions that are within the survey questionnaire are close ended questions with the help of

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which the respondents are able to answer all the questions in an effective manner and the
respondents are assured of the fact that all their personal data and information will be kept
confidential. The questionnaires are forwarded to the respondents in their personal electronic
mail ID and accordingly they are asked to forward the filled up questionnaire. The secondary
data on the other hand, is gathered by taking assistance of several electronic journals and articles
that have been created by various authors. These articles can be helpful in creating an idea about
this topic and accordingly the end result of the topic can be attained. The research paper has
concentrated more on the use of primary data over the secondary data because of the fact that
primary data is helpful in creating an idea about what the respondents have in mind with respect
to this topic.
3.9 Quantitative Data
The quantitative data are the data which can be analysed in order to project the data in
accordance to their validity and with the help of which precise level of data can be attained.
Lehner, Hunzeker and Ziegler (2017) addressed that quantitative data gives out the results with
respect to the outlook of the respondents who are related with the data that has been gathered.
Therefore, this process is looking to gather a sample size that is appropriate for the purpose of
evaluation. In accordance to this research, the data that is required to be collected is gathered
from valid sources and accordingly results can be used for the purpose of completing the paper in
a suitable manner. The quantitative data takes assistance of the numerical and figures with the
help of which the analysis process can be completed in an effective manner.

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3.10 Primary Data
The researcher has gathered the primary data for this research by taking assistance of a
questionnaire that has been constructed and accordingly gathers the responses of the chosen
participants.
3.11 Secondary Data
The secondary data has been gathered by assessing several articles and journals that are
available in the economy and accordingly choose the ones that are ideal for this paper. The
researcher in this paper has taken help of those articles and journals that are ideal for this paper
and accordingly an idea has been attained as the effectiveness of crypto currencies as a medium
of exchange in the contemporary economy.
3.12 Sampling and Sample Size
The process of sampling is a process which selected their own respondents from a
population pool. The sampling process is fundamental to the researcher in order to make use of
the most effective tool and technique for the primary data with the help of which effective level
of outcomes in accordance to the goal of the thesis paper can be attained (Motsi-Omoijiade
2017). The researcher has taken assistance of random sampling because of the fact that this
provides an opportunity for all the people in the population pool the opportunity to get selected
for this research paper. The researcher in this paper has taken assistance of 50 respondents so
that effective level of results can be attained and accordingly the results that are desired can be
attained.

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3.13 Data Analysis
The information or the data that has been collected needs to be assessed taking assistance
of the statistical tools that are available to the researcher and accordingly the process of data
assessment can be understood. Peng et al. (2018) explained that precise selection of the statistical
tools is essential for the attainment of the precise and authentic outcomes. It even assists in
keeping the transparency and estimating the information that has been generated and collected.
The data has been disclosed in the form of figures and tables in order to provide simpler
interpretation and the knowledge about the information. The researcher has taken assistance of
the Excel software in order to enhance the responses of the respondents into precise percentages
so that a projected trend can be created.
3.14 Ethical Consideration
The researcher has maintained the code of ethics and therefore the all the data that has
been collected are on the basis on the international and domestic codes and principle that have
been constructed with respect to ethic. The ethics have been maintained with the help of which
true and fair data can be collected and accordingly the results that have been obtained would be
helpful in the gaining true and valid results.

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Chapter 4: Data Analysis and Discussion
4.1 Introduction
This section of the paper would look to explain and assess the data that has been collected
for the purpose of data analysis and in this section of the paper, data analysis would be
undertaken in an extensive manner with the help of which effective results in accordance to this
paper can be collected in an extensive manner. The various modes of data analysis have been
explained as follows:
4.2 Frequency Analysis
Answer to Question No 1
Gender
Frequenc
y
Cumulative
Frequency Percentage
Male 25 25 50.00%
Female 25 25 50.00%
Total 50 50 100.00%
This question is related to having an understanding of the gender of the respondents who
have been chosen for this research. The results that have been collected from the respondents
explains that 50% of the respondents are male and the respondents and the rest of 50% of the
respondents are female. This explains that the respondents are distributed equally among the
male and the females and therefore the results that would be attained will be ideal.

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50.00%50.00%
Gender
1
2
Table 1: Gender
(Source: As Created By Author)
Answer to Question No 2
Age group
Frequenc
y
Cumulative
Frequency Percentage
18-24 Years 8 8 16.00%
25-34 Years 15 23 30.00%
35-44 Years 10 33 20.00%
45 -54 Years 11 44 22.00%
55 Years and above 6 50 12.00%
Total 50 50 100%
This question is related to answering the age group of the respondents and it is seen that
30% of the respondents are within the age group of 25-34 years, 20% of the respondents are
within the age group of 35-44 years. It is seen that 22% of the respondents are within the age
group of 45-54 years while 16% are within the age group of 18-24 years. It is seen that the
smallest number of percentage are within the age group of 55 years or above and the percentage

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comes up to 12%. This explains that most of the respondents are within the middle aged group
and therefore the answers will be idea for this paper.
16.00%
30.00%
20.00%
22.00%
12.00%
Age Group
1
2
3
4
5
Table 2: Age Group
(Source: As Created By Author)
Answer to Question No 3
Virtual Currencies
Frequenc
y
Cumulative
Frequency Percentage
Yes 22 22 44.00%
No 8 30 16.00%
May be 19 49 38.00%
No idea 1 50 2.00%
Total 50 50 100%
This question looks to answer whether the respondents are aware about the crypto or the
virtual currencies and it is seen that 44% of them have said that they have knowledge about

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crypto currencies. It is seen that 38% are uncertain and therefore they have opted for “may be”
section. 16% of the respondents have said that they have not heard about this kind of term and a
small percentage of 2% have suggested that they have no idea on this topic. The results have
explained that most of the respondents have knowledge about this term and certain respondents
have not heard of the same.
1 2 3 4
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
50.00% 44.00%
16.00%
38.00%
2.00%
Virtual Currencies
Percentage
Table 3: Virtual Currencies
(Source: As Created By Author)
Answer to Question No 4
Medium of Exchange
Frequenc
y
Cumulative
Frequency Percentage
Yes 27 27 54.00%
No 12 39 24.00%
May be 7 46 14.00%
No idea 4 50 8.00%
Total 50 50 100%

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This question has looked to answer the fact that whether the respondents are aware about
whether this kind of currencies acts as a medium of exchange. It is seen that 54% have said “yes”
and on the other hand 24% have said “no”. 14% of the respondents have gone for the opinion of
“may be” explaining that most of them are not aware properly and 8% of the respondents have
said that they have “no idea”. The results have explained that most of the respondents have
explained that respondents have knowledge that they have sufficient knowledge about this kind
of currencies are used as a medium of exchange.
1 2 3 4
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00% 54.00%
24.00%
14.00%
8.00%
Medium of Exchange
Percentage
Table 4: Medium of exchange
(Source: As Created By Author)
Answer to Question no 5
Financial Transaction Frequenc Cumulative Percentage

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Improvement y Frequency
Strongly Agree 11 11 22.00%
Agree 23 34 46.00%
Neutral 9 43 18.00%
Disagree 7 50 14.00%
Strongly Disagree 0 50 0.00%
Total 50 50 100%
This question has looked to answer the fact that whether this kind of currencies are able
to improve the level of financial transactions and the results have indicated that 46% have agreed
to this statement and on the other hand 22% have strongly agreed to this statement. It is seen that
18% of the respondents have remained neutral and a small percentage of 14% disagreed to this
statement. No one has answered strongly disagreed. The results have indicated that most of the
respondents have agreed to this statement. The results have explained that crypto currencies are
able to enhance the financial transactions in the economy.
1 2 3 4 5
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
50.00%
22.00%
46.00%
18.00%
14.00%
Financial Transaction
Percentage
Table 5: Financial Transaction
(Source: As Created By Author)

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Answer to Question No 6
Threat to the Economy
Frequenc
y
Cumulative
Frequency Percentage
Strongly Agree 10 10 20.00%
Agree 25 35 50.00%
Neutral 8 43 16.00%
Disagree 6 49 12.00%
Strongly Disagree 1 50 2.00%
Total 50 50 100%
This question is related to getting knowledge about the fact that whether crypto
currencies can be a threat to the economy. The results have indicated that 50% have agreed to
this statement and on the other hand 20% have strongly agreed to this statement. 16% of them
have remained neutral and 12% have disagreed to this statement. A small percentage of 2% have
strongly disagreed explaining that crypto currencies can be a threat to the economy.

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1 2 3 4 5
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
20.00%
50.00%
16.00% 12.00%
2.00%
Threat to the Economy
Percentage
Table 6: Threat to Economy
(Source: As Created By Author)
Answer to Question No 7
Cost-Efficient
Frequenc
y
Cumulative
Frequency Percentage
Strongly Agree 6 6 12.00%
Agree 27 33 54.00%
Neutral 11 44 22.00%
Disagree 6 50 12.00%
Strongly Disagree 0 50 0.00%
Total 50 50 100%
This question has looked to explain whether crypto currencies are able to provide cost
effective services. The results have indicated that 54% have agreed to this statement and on the
other hand 22% have remained neutral. On the other hand 12% have strongly agreed and 12%
have disagreed to this point. No one has responded to the strongly disagree point and thereby

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addressing the fact that crypto currencies if used in a proper manner will act as a cost effective
service for the consumers.
1 2 3 4 5
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
12.00%
54.00%
22.00%
12.00%
0.00%
Cost-Efficient
Percentage
Table 7: Cost Efficient
(Source: As Created By Author)
Answer to Question No 8
Monetary Stability
Frequenc
y
Cumulative
Frequency Percentage
Strongly Agree 4 4 8.00%
Agree 28 32 56.00%
Neutral 10 42 20.00%
Disagree 5 47 10.00%
Strongly Disagree 3 50 6.00%
Total 50 50 100%
This question has looked to answer whether crypto currencies are able to bring about
monetary stability in the economy and the results have indicated that 56% have agreed to this

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statement and on the other hand 20% of the respondents have remained neutral. This explains
that there is a part of the respondents who do not have adequate knowledge about monetary
stability. 10% of the respondents have disagreed to this statement and 8% have strongly agreed.
A small percentage of 6% have strongly disagreed to this statement. The results have indicated
that crypto currencies are able to bring in monetary stability within the economy.
1 2 3 4 5
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
8.00%
56.00%
20.00%
10.00% 6.00%
Monetary Stability
Percentage
Table 8: Monetary Stability
(Source: As Created By Author)
Answer to Questions No 9
Money for the future
Frequenc
y
Cumulative
Frequency Percentage
Yes 23 23 46.00%
No 12 35 24.00%
May be 14 49 28.00%
No idea 1 50 2.00%
Total 50 50 100%

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This question has looked to answer the fact that whether crypto currencies can act as the
money for the coming future. The results that have been attained with respect to this paper has
explained that 46% of them have said that crypto currencies can act as a money for the purpose
of transactions in the coming future, while 28% are not aware of the same and therefore have
opted for “may be”. 24% of the respondents have said that they do not think that these currencies
can be used for the purpose of transactions in the coming time and therefore cannot act as the
money for the future. A small percentage of 2% have suggested that they do not have any idea on
this statement and thereby addressing those crypto currencies can act as the money for the future
if acted in an effective manner.
1 2 3 4
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
50.00% 46.00%
24.00%
28.00%
2.00%
Money for the future
Table 9: Money for the Future
(Source: As Created By Author)

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4.3 Descriptive Statistics
Partic
ulars
Age
Group
Gen
der
Virtua
l
Curre
ncy
Medi
um of
Excha
nge
Finan
cial
Trans
action
Impro
veme
nt
Threa
t to
the
Econo
my
Cost-
Effici
ent
Mone
tary
Stabil
ity
Futur
e
Mean 2.84 1.5 1.98 1.76 2.24 2.26 2.34 2.5 1.86
Standa
rd
Error
0.181
51291
6
0.07
142
9
0.135
49606
5
0.138
68184
1
0.135
70676
7
0.139
41569
0.119
89791
6
0.140
69796
9
0.127
80725
3
Media
n 3 1.5 2 1 2 2 2 2 2
Mode 2 1 1 1 2 2 2 2 1
Standa
rd
Deviat
ion
1.283
49014
0.50
507
6
0.958
10186
5
0.980
62870
3
0.959
59175
0.985
8178
0.847
80629
3
0.994
88487
7
0.903
73375
2
Sampl
e
Varian
ce
1.647
34693
9
0.25
510
2
0.917
95918
4
0.961
63265
3
0.920
81632
7
0.971
83673
5
0.718
77551
0.989
79591
8
0.816
73469
4
Kurtos
is
-
1.070
31766
6
-
2.08
511
-
1.618
52331
6
-
0.042
18493
7
-
0.574
24517
5
0.204
08654
3
-
0.185
52419
6
0.695
18319
9
-
1.214
62363
7
Skewn
ess
0.190
53442
7
2.36
E-
17
0.186
09865
4
1.050
91791
5
0.500
96104
4
0.776
12688
4
0.527
13122
2
1.036
22827
0.459
25304
7
Range 4 1 3 3 3 4 3 4 3
Minim
um 1 1 1 1 1 1 1 1 1
Maxi
mum 5 2 4 4 4 5 4 5 4
Sum 142 75 99 88 112 113 117 125 93
Count 50 50 50 50 50 50 50 50 50
Larges
t(1) 5 2 4 4 4 5 4 5 4
Small
est(1) 1 1 1 1 1 1 1 1 1
Confi 0.364 0.14 0.272 0.278 0.272 0.280 0.240 0.282 0.256

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dence
Level(
95.0%
)
76386
2
354
1
28953
7
69159
4
71295
8
16631
9
94388
2
74315
4 83829
Table 10: Descriptive Statistics
(Source: As Created By the Author)
The table that is given above have looked to provide the descriptive statistics of all the
questions that have been taken into consideration. The results have indicated that mean of the
questions have varied from 2.34 to 1.5. The median for the questions that have been attained
varies in between 0.07 to 0.18. The standard deviation for the questions has been around 0.5 to
1.28. The values that have been attained are all positive and are very much close to each other
and thereby addressing the fact that crypto currencies if utilized in a proper manner with the help
of effective supervision would be helpful in the development of the economy and this currency
can act as a substitute for the purpose of making financial transactions with the help of which the
transaction time can be reduced and the carrying of paper cash can be mitigated among the
customers. The results have been effective and thereby have been able to address that crypto
currencies in the coming future can act as an essential mode of transactions even though there are
certain limitations but the maintenance of effective supervision can enhance this kind of
operations.
4.4 Correlation
Particul
ars
Age
Group
Gen
der
Virtual
Currenc
y
Medium
of
Exchan
ge
Financia
l
Transact
ion
Improve
Threat
to the
Econom
y
Cost-
Efficien
t
Monetar
y
Stability
Fut
ure

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ment
Age
Group 1
Gender
0.8499
985 1
Virtual
Currenc
y
0.9101
168
0.90
67 1
Medium
of
Exchan
ge
0.8768
867
0.78
29
0.84192
1116 1
Financia
l
Transact
ion
Improve
ment
0.9265
995
0.71
58
0.80444
0483
0.86490
4115 1
Threat
to the
Econom
y
0.9045
295
0.67
63
0.78347
1817
0.86807
2043
0.96821
9014 1
Cost-
Efficien
t
0.9324
936
0.69
11
0.78739
8514
0.86111
7208
0.92615
2431
0.91762
9579 1
Monetar
y
Stability
0.8790
25
0.67
01
0.78146
9926
0.89948
7113
0.89782
951
0.90515
6537
0.93152
6436 1
Future
0.9303
842
0.87
18
0.93948
3218
0.88243
8235
0.86318
968
0.86633
9841
0.83583
3399
0.82848
2717 1
Table 11: Correlation
(Source: As Created By the Author)
The table above looks to explain the correlation that is associated with the questions that
have been constructed earlier and accordingly the results have been provided by the respondents.
The correlation looks to address the level of mutual relationship among all the variables that
have been taken into consideration in this paper. The results that have been obtained after the

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correlation analysis explains that all the questions and the variables are able to positively
correlated and the values that have been obtained for all the questions with respect to each other
have explained that all the values are very close to one and this suggests that all the variables
have positively correlated and maintenance of the same would be helpful in the incorporation of
the crypto currencies in the modern world in accordance to the real currencies.
4.5 Discussions
The results that have been collected address the fact that there are several limitations and
risks that are related crypto currencies. The responses that have been provided by the
respondents explains the fact that Bitcoin and Ethereum has been able to improve the financial
position of the economy and accordingly it is the duty of the researchers and the ones that are
making use of these currencies to monitor these currencies on frequent basis in order to discover
the scams and the faults that are available and thereby is able to mitigate these issues in order to
make the transactions and the services in a better manner. The advent of globalisation and the
use of the digitalised services have led to the requirement for an alternative currency use and the
utilisation of these currencies would lead to minimisation of the use of time among the
consumers and accordingly will be useful for the development of the crypto currency usage and
transactions. The descriptive statistics have indicated that all the variables yield positive results
and the correlation indicates that all the variables are related positively and in this manner this
would explain that crypto currencies can be a good money for the future but one needs to keep in
mind of the fact that if the limitations and the disadvantages are mitigated in an effective manner
then it would improve the global economy as a whole.

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4.6 Summary
The results have indicated that crypto currencies like the Bitcoin and Ethereum are
developing kinds of crypto currencies that are used extensively and the in the current time period
there has been a rise in the level of crypto currency usage and thereby has been explain the fact
that this kind of currencies can be a future for the use of money for the purpose of making
transactions is the risks related to these currencies are not monitored and measures with respect
to these actions are not undertaken in an effective manner. The results explained that crypto
currencies in the present time and in the coming future can be an effective platform for the
purpose of financial transactions in the coming future.

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Chapter 5: Conclusion, Recommendation and Future Work
5.1 Conclusion
This paper has looked to address the several elements that are related to the topic that has
been taken into consideration. The introduction of the paper has looked to provide an overview
of the topic with respect to the history of crypto currencies and how these currencies have
developed in the course of time with respect to its date of incorporation to the current time
period. The background of the paper has looked to address the elements that are related to the
crypto currencies and accordingly an idea cane be attained with respect to how crypto currencies
have developed and accordingly the elements that are related to this topic can be understood in
an effective manner.
In the current time period there are certain micro payment services that have been
developed and accordingly these processes have been helpful in mitigating the transaction
processes that are available to the consumers. It has been discovered that with the incorporation
of these currencies have led to the development of several risks and threats and accordingly the
consumers have been reluctant in undertaking investments in these currencies. The crypto
currencies were mainly used in the gaming industry in the beginning of their incorporation and
thereafter making several amendments and the large companies entering into this line of business
would lead to development in the crypto currency transactions.
The background of the study has indicated that crypto currencies have been an
incorporation of the amalgamation of the real world currencies and the virtual currencies and
accordingly the results have indicated that there has been a rise in the crypto currencies when the

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companies were motivated in creating a better mode of crypto currencies transactions. The extent
of exchange rate has been low in the use of crypto currencies and it has been discovered that
there have been more investments in the process of crypto currencies. The objectives and the
aims that have been constructed in this paper has explained these are the issues that are related to
crypto currencies and accordingly the researcher had the objective of answering these issues in
order to gain conclusive results. The scope of the research and the purpose of undertaking this
research is even explained in this paper in order to have a proper understanding of the
significance of crypto currencies and whether they can act as a future money in the economy or
will lead to a financial crisis in the coming future.
The literature review of the paper has provided an insight of the aspects and the variables
that are related to crypto currencies and accordingly the literature has looked to explain what the
other researchers have suggested with respect to this topic. It is known that Bitcoin and Ethereum
are the two of the most used crypto currencies and this has been understood by understanding the
volume of sales and the extent of market capitalization. Bitcoin has been one of the earliest
modes of crypto currencies and accordingly the use of Bitcoin has been possible with the help of
the platforms that are available to the research. The results have indicated that there has been a
rise in the purchase of the Bitcoin and purchases have been possible with the help of the
exchange rate that encourages the real money that would be used for the purpose of buying the
Bitcoin currencies. The Bitcoin has a wallet that is used in order to store the coins that have been
purchased and accordingly all the transactions can be recorded so that it can be looked down
upon during any kind of discrepancies and issues that may arise in the future.
Ethereum on the other hand is similar to Bitcoin and it is seen that this currency has been
established at a latter year. Ethereum has several uses and it is seen that there has been a rise in

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the use of these currencies for the purpose of smart contracts, investments and payment of
several services. Similar to Bitcoin, this currency makes use of the exchange platforms as well
and this system has been able to make use of electronic wallets as well. The market capitalization
of the Ethereum has been very high and therefore it indicates that crypto currencies can be
helpful in the development of the economy and the reduction in the time that is covered in order
to make financial transactions. The literature has even provided an insight on the risks that are
related to the currencies and accordingly an idea has been attained with respect to the benefits
and the risks that are associated to the same. These have been the features that are essential for
the development of the economy of crypto currencies and it is seen that the use of these features
will lead to the growth of these currencies and the economy as a whole.
The methodology of the paper provided an idea about the kind of data that would be
suitable for this paper and the researcher has selected the data based on the topic that has been
selected for this paper. The researcher in this thesis has looked to make use of quantitative data
analysis and accordingly an idea can be attained with respect to the values and the figures that
would be used for the purpose of data analysis. The researcher has chosen the positivism
philosophy, the approach that is deductive in nature and a descriptive research design. The
researcher has looked to collect the data with the help of survey analysis and therefore has
constructed a questionnaire based on close ended questions. The responses are collected from the
selected respondents with the help of the questionnaire and accordingly results can be attained.
This paper has looked to make use of primary data so that effective level of results can be
obtained and accordingly better results can be attained. The research has collected the data and
accordingly the data analysis process is undertaken with the help of which the expected
outcomes can be attained. The researcher has utilized excel software so that the desired results

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can be attained. The data analysis process is accordingly initiated and thereby effective results
can be attained. The outcome of the paper has revealed that crypto currencies has gained a lot of
prominence and accordingly the results explain that Bitcoin and Ethereum can become the future
money and in order to make crypto currencies the same it is the role of the government and the
concerned personnel to plan and construct policies that would be assist in proper monitoring of
the currencies as the results have explained that there exists a bit of threat in the economy. The
reason has been the availability of certain limitations and threats like the rise in the level of
scams and money laundering that may not motivate the investors and the consumers to undertake
payments and investments in these kinds of currencies. The proper maintenance of the activities
of these currencies would lead to the development of the crypto currencies in the global economy
and accordingly these currencies can become the future for the fiat money.
The outcome that has attained is in line with the objectives that have been discussed and
therefore addressing the objectives play an essential role in order to have an understanding that
the results that have been able to answer the objectives. The explanation of the objectives has
been explained as follows:
Objective 1: To critically assess the features of the crypto currencies, their alterations, various
implications along with the outcome it would attain
The research paper has looked to answer all the features of crypto currencies and
accordingly the alterations and their various applications have been discussed. The results have
been able to explain the fact that all the features of crypto currencies have their significance and
therefore these currencies are able to serve the economy and the consumers in an effective
manner. The several kinds of crypto currencies that are available to the customers have even

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been addressed and the most used currencies have been highlighted in this paper. The outcome
that is desired from these kinds of currencies can be known in an effective manner and thereby
creating a chance that all the currencies can be explained in an effective manner.
Objective 2: To assess the opportunities and the threats related to Bitcoin and Ethereum
currencies for gaining knowledge about their impact and influence on creating a shift of the
financial theories either for the good or for the bad.
This objective has been related to evaluating the threats and the benefits that are related
to the crypto currencies this paper and accordingly has tried to do the same. The impact of these
currencies in leading to a change in the financial theories and models can be known in an
effective manner and thereby concluding the fact that crypto currencies even though have certain
limitations but on an overall basis this is helpful in the development of the transactions that are
taking place in the economy and thereby is able to address the fact that the financial theories can
be changed and accordingly the results that have been collected in this paper indicates that even
though there exists certain amount of risks, the mitigation of these risks is helpful in the
development of the alternative currencies that can be used in the economy by the users in order
reduce their use of paper currencies and increasing the level of the digital and economic
payments.
The explanations that have been provided explain the fact that the research paper has
been able to explicitly address the objectives of the paper and thereby explaining that effective
results have been obtained.
The research paper as a whole addresses the fact crypto currencies like Bitcoin and
Ethereum have the capacity to become the future of a new currency and the governments and the

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related body needs to assess the activities in an effective manner in order to reduce the threats
related to it and accordingly take measures in order to make crypto currencies a better and
effective one.
5.2 Recommendation
There are numerous recommendations that can be given out with respect to the topic that
is considered in this paper and there has been an observation that attainment of these objectives
would be helpful in the mitigation of the issues that have been addressed.
It is recommended that the movement of the currencies ion the economy are assessed and
evaluated on a frequent basis in order to provide an idea about the position of the currencies so
that any negative changes in the currencies can be understood in an effective manner and thereby
create scopes in order to rectify them in order to create the create a better crypto currency
platform.
The assessment of the research thesis has disclosed the fact that crypto currencies are an
innovative process buying goods and making payments along with undertaking investments and
therefore developments in the process can be done by incorporating the new and improved
software and technologies within the payment system. This will be helpful in reducing the extent
of thefts, money laundering and hacking that is existent in the crypto currency model so that
effective and precise level of monitoring can be attained for the mitigation of the risks and
improvements in the theft handling processes.
It is even suggested that extensive promotions and awareness programs are initiated by
the government and the related companies who are associated with the use of these currencies so
that the customers are able to attain certain ideas about these kinds of currencies and rise in the

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use of these currencies are able to make them much more popular. The government and the
related body needs to undertake various steps with the help of which the crypto currencies are
bounded within the limitations of the government so that risks related to these issues can be
mitigated in an effective manner.
5.3 Future Work
This research paper has infinite amount of scope for future work because of the fact that
there can be better researches that can be undertaken in the future course of time with the help of
several new tools and technologies can be used in order to make enhanced researches. The
effectiveness of the crypto currencies in the future time period can be helpful in understanding
the changes that have taken place with the current time period and accordingly an idea can be
attained with respect to the effectiveness of crypto currencies. The use of a larger sample size
would be helpful in gaining better results that would be useful in the development of a better
outcome with the help of which an understanding can be attained as to whether crypto currencies
can be a source of the future money.

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Appendix
Q1. Age group
 18-24 years
 25-34 years
 35-44 years
 45-54 years
 55 years and above
Q2. Gender
 Male
 Female
Q3. Knowledge about Crypto Currencies like Bitcoin and Ethereum
 Yes
 No
 May be
 No idea

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MONEY OR JUST THE NEW GLOBAL FINANCIAL CRISIS
Q4. Knowledge about Crypto currencies like Bitcoin and Ethereum being used as a medium of
exchange in the real world economy
 Yes
 No
 May be
 No idea
Q5. Crypto currencies like Bitcoin and Ethereum are improving the financial transactions in the
real world
 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree
Q6. Crypto currencies like Bitcoin and Ethereum pose a threat to the national and the
international economy
 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree
Q7. Use of Crypto currencies like Bitcoin and Ethereum are cost efficient with respect to real
currency transaction

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MONEY OR JUST THE NEW GLOBAL FINANCIAL CRISIS
 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree
Q8. Crypto currencies like Bitcoin and Ethereum have an impact on the monetary stability of the
international and national economy
 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree
Q9. Crypto currencies can be looked upon to be the money of the future
 Yes
 No
 May be
 No idea