Critical Article Review: The Effectiveness of Cryptocurrency

Running head: CRITICAL REVIEW
CRITICAL REVIEW
Name of Student:
Name of University:
Author note:

Introduction
The topic relating to cryptocurrency and bit coin has been very famous in the financial
industry. Cryptocurrency is known as the digital currency that comes cryptography, which is
used for security. The security feature is the one that makes it difficult to counterfeit. On the
contrary, cryptocurrency has multiple benefits and drawbacks. The paper is a critical review of
an article based on the effectiveness of cryptocurrency.
Discussion
The paper starts with a brief description of the financial market and how instruments are
created to make easiest transaction. The evolution of cryptocurrency has developed he market
structure and simplified the transaction pattern. However, cryptocurrency is not used by any
central authority due to its organic nature. The author has mentioned that bit coin has been
accomplished as theoretically immune for manipulation or government interference.
The effectiveness of cryptocurrency is that funds are easily transferred from one party to
another party, which are facilitated though the usage of public and private keys. The procedure
does not need much fees and users have to pay minimal transfer fees in comparison to what is
being charged by the banks for online transactions. The author has properly described about the
benefits of cryptocurrency although use of cryptocurrency remains a puzzlement for the people
and the author has not properly described about its functioning.
The narrator has efficiently acknowledged about the disadvantages of bitcoin or
cryptocurrency. The biggest drawback is that the threat of hacking that comes up from the usage
of payment system of cryptocurrency. The history of bitcoin mentions about the concurrence of
40 thefts of the company, where a few has also exceeded the value of one million US dollars. In
spite of these potential risks and negative effects, cryptocurrency is preferred over other means