Are online currencies such as Bitcoin and Ethereum the future of money or just the new global financial crisis?

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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ARE ONLINE CURRENCIES SUCH AS BITCOIN AND ETHEREUM THE FUTURE OF
MONEY OR JUST THE NEW GLOBAL FINANCIAL CRISIS
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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ARE ONLINE CURRENCIES SUCH AS BITCOIN AND ETHEREUM THE FUTURE OF
MONEY OR JUST THE NEW GLOBAL FINANCIAL CRISIS
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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ARE ONLINE CURRENCIES SUCH AS BITCOIN AND ETHEREUM THE FUTURE OF
MONEY OR JUST THE NEW GLOBAL FINANCIAL CRISIS
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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ARE ONLINE CURRENCIES SUCH AS BITCOIN AND ETHEREUM THE FUTURE OF
MONEY OR JUST THE NEW GLOBAL FINANCIAL CRISIS
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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ARE ONLINE CURRENCIES SUCH AS BITCOIN AND ETHEREUM THE FUTURE OF
MONEY OR JUST THE NEW GLOBAL FINANCIAL CRISIS
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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ARE ONLINE CURRENCIES SUCH AS BITCOIN AND ETHEREUM THE FUTURE OF
MONEY OR JUST THE NEW GLOBAL FINANCIAL CRISIS
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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ARE ONLINE CURRENCIES SUCH AS BITCOIN AND ETHEREUM THE FUTURE OF
MONEY OR JUST THE NEW GLOBAL FINANCIAL CRISIS
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.