Cryptocurrency: Ten Years On

Contents
CRYPTOCURRENCY: TEN YEARS ON............................................................................2
EXECUTIVE SUMMARY................................................................................................. 2
INTRODUCTION....................................................................................................... 3
In response to part a.................................................................................................. 3
Regulation of Cryptocurrency............................................................................... 3
Drawbacks of Cryptocurrency..............................................................................4
What stand do nations take with respect to cryptocurrency................................5
Control of cryptocurrency.................................................................................... 5
Conclusion............................................................................................................ 6
In response to part b............................................................................................... 6
How bitcoin works?.............................................................................................. 6
What is Fiat currency and who controls it............................................................7
Why bitcoin (cryptocurrency in general) is bad for economy...............................7
Australia’s Central Bank’s stand on Cryptocurrency............................................9
Conclusion............................................................................................................... 9
RECOMMENDATION.................................................................................................. 10
REFERENCES............................................................................................................ 11

CRYPTOCURRENCY: TEN YEARS ON.
EXECUTIVE SUMMARY
A cryptocurrency is an on web exchangeable internet based resource or electronic
format of money based on blockchain technology. To ascertain and safeguard
transfers, cryptocurrencies use cryptography, hence their name. There are more
than thousand distinct cryptocurrencies around the globe at the moment, and
several individuals see them as the centerpiece of an equitable, modern era ("What
is Cryptocurrency. Guide for Beginners", 2019).
This assignment deals with cryptocurrency (bitcoin in specific) and discusses about
its nature, legality and future.

INTRODUCTION
Cryptocurrency is an online trade medium that utilizes cryptographic
features to perform monetary deal. Cryptocurrencies utilize blockchain
tech to achieve redistribution, accountability and formal verification.A
cryptocurrency's greatest significant characteristic is that it is not regulated
by any central authority: the blockchain'slong-term viability makes
cryptocurrencies technically resistant to the ancient methods of command
and intervention by govt. Cryptocurrencies can be sent by using private and
public codes specifically among two sides ("What is Cryptocurrency?
[Everything You Need To Know!]", 2019). These transactions can be made
with negligible rendering charges, enabling customers to avoid the high
charges that regulated financial establishments are charging.
In response to part a.
Regulation of Cryptocurrency
The program that can be downloaded by everyone is free. One can obtain
and give Bitcoins or some different cryptocurrencies once they have
activated it. There is no gatekeeper functionally and consequently,
displaying the currency's intrinsic peculiar market hazards (Peters, 2019).
Deficit of trust in virtual currencies: a high level of risk is susceptible to the
emerging essence of currencies. Online platforms produced a big trading
event by investors wishing to take advantage of virtual currency keeping in

the short or long span. Cryptocurrencies are not supported by a banking
system, a domestic or overseas organization, or assets or other loan, and
their price is solely calculated by the price that market members put on
them via their operations, meaning that lack of trust can cause instability of
exchange operations and an unexpected fall in price ("The Future of
Banking: Cryptocurrencies Will Need Some Rules to Change the Game",
2019).
Drawbacks of Cryptocurrency
Since Cryptocurrency is fundamentally a money unit, a big range of illegal
society has been drawn; these felons can tear into crypto transactions,
empty crypto pockets, and contaminate edge routers with malicious software
that ruins cryptocurrency (Vigna, 2016). The cyber-criminals target
individuals, customer processing and storage regions as operations are
performed on the web via methods like spoofing / phishing and viruses. To
safeguard bought cryptocurrencies from being stolen, consumers must
depend on the power of their own network security schemes as well as third-
party safety systems. In addition, cryptocurrency is extremely dependent on
uncontrolled firms, some of which can lack adequate inner checks and may
be more vulnerable than traditional financial organizations to fraud and theft.
In addition, the system requires to be reviewed frequently and sometimes
looks suspicious. Sourcing suppliers of blockchain tech may lead in important
danger to third parties.There is very little in in the way of regeneration, if the
codes are taken away from the pocket of the customer, the hacker can
completely imitate the rightful owner of the consideration and have the
same access to the money in the pocket that the current owner had. Once
the Bitcoins are transported from the consideration and the payment is
perpetrated to the block chain, the rightful owner will lose those funds
indefinitely.
The capacity to undo a financial deal in a uniform manner occurs with a
distributed depository that guarantees the legitimacy of a transfer; no such