Cryptocurrencies | International Trade and Finance

Running head: International trade and finance
International trade and finance
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International trade and finance
Executive Summary
Cryptocurrencies is one of the virtual currency that is based on the cryptography and
electronic communication. Recently, in the current economy it can be seen that the bitcoin
was the first cryptocurrency that was introduced which does get a lot of attention. The basic
aspects of cryptocurrency which does includes the anonymity, awareness and legislation
effects are all briefly discussed here. There are multiple legislation barriers that affect the use
of cryptocurrency are detected. In the later part, the mechanism of block chain has been
discussed and the relationship between the cryptocurrency has been conversed.

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International trade and finance
Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
Literature Review.......................................................................................................................4
Basic aspects of Cryptocurrencies.............................................................................................6
Block chain.................................................................................................................................8
Conclusion..................................................................................................................................9
References................................................................................................................................10
Appendix..................................................................................................................................13

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International trade and finance
Introduction
The cryptocurrencies are one of new concept that is in the global economy. With this
concept it does attracted a lot of attention in a span of five years, and from the year 2013 it
has experienced a turbulence change in the exchange rates. It is considered under the group of
virtual currencies and as a digital medium of exchange, which is usually based upon the
principles of cryptography that allows the performance to be secure, decentralized a
distributed economy. The theoretical foundations in cryptocurrencies was founded first time
in the year 1983, in which it was integrated that it was an electronic virtual money that was in
the principles of cryptography. It does allow the individuals in transferring virtually costless
of the cryptocurrency units between the client applications through the computer peer
network.
Discussion
The most famous cryptocurrency that was first introduced in the year 2009 was the
bitcoin. It was designed by the group of persons that does work under the pseudonym Satoshi
Nakamoto. There are usually two types of bitcoin that does exists one is for the ordinary
users and other is the bitcoin miners. The ordinary users of the bitcoin do use the digital
wallet, which is usually similar to the applications of electronic banking. The wallet in which
the transactions are been done is like a software in which all the bitcoin cash is bene
managed, which includes the sending and receiving payments in the bitcoins. The bitcoin
does exist as the information that is kept in the files in the computer or smart devices like the
smart phones. This is done by the normal group of users and for the group of miners they do
use the mathematical problem which is been dedicated for the computational power to the
bitcoin network. The miners do use the process of mining in which they do wait for