Cryptocurrency: Importance, Development, Technology, Business Use, and Effectiveness

This report discusses the importance, development, technology, business use, and effectiveness of cryptocurrency as a digital currency. It explores the relationship between digital technologies and business and management structures. The report also covers the types of businesses that use cryptocurrency and how it can be used as a business tool. Course code, course name, and college/university are not mentioned.

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
A. Importance of crypto currency...............................................................................................1
B. Development of crypto currency............................................................................................2
d. Technological platform and software used in cryptocurrency................................................2
e Type of organizations and businesses uses cryptocurrency.....................................................3
f The ways in which cryptocurrency is used as business tool as well as its effectiveness..........3
Content and discussion on the nature of the relationship between digital technologies and both
old and newly emerging theories on business and management structures and practices..........4
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Crypto currency is a digitalized currency which is mainly designed for working as a medium of
exchange through the help of mobile or computer network, which is not governed by any of the
central body like government or bank. This study report regarding crypto currency will tell the
importance of crypto currency, how it is developed, the technologies and software's used in the
crypto currency, the types of organization and business that uses the crypto currency and at last
this report will show that how the crypto currency can be used as a business tool and is it really
effective.
MAIN BODY
A. Importance of crypto currency
Not only one country, but the whole global economy is growing towards the digital system and
which has immensely considered the growth in digital currency which is said as crypto currency,
it is the current trend of market in which every single person is investing their hard-earned
money. Some importance of crypto currency is as follows :-
Less investment high returns : the investment in the crypto currency gives the higher return on
the investment, it is the only investment which have given the higher amount of return till now.
People investing in thousands have got a return of crores. The investment in the crypto currency
is not governed by anyone which causes the high fluctuation in the rates.
Fraud-control : the risk of fraud is not in the crypto currency as it is neither governed by banks
nor by any governmental body so the investment done by the people's stays safe in the public
ledger, which can be seen by none other than the investor. Also, the investing amount as well as
the identity of investor in this currency is encrypted to make sure the validity of record keeping.
Instant settlements : there are many investment bodies but there is no one like crypto currency,
each and every market takes some time to settle the invested money, but crypto currency directly
transfer the invested amount in seconds even if it is Sunday. Ease in use of crypto currency is the
main reason behind the massive growth of this currency.
Accessible : as the crypto currency is not regulated by any governmental body it has no
restriction on use of crypto currency, it can be accessed by anyone and anywhere by the use of
internet and almost everyone has the access to the internet, the data says that 2 billion people are
using the internet.
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The first ever build crypto currency which is bitcoin have given a huge profit to the people's in
crypto currency and this attracted many people's or firm's to build their own crypto currency
leading to competition in the crypto industry, the more increase in rivalry have helped in the
growth of the crypto industry.
B. Development of crypto currency
In the current years from past 5-6 years the crypto currency users are increasing every day, some
key factor influencing market development of crypto currency globally are as follows:-
Tech Developers :- all the talented developers have putted their efforts in developing or mining
the crypto currency, but many of the developers have looked upon some entrepreneur topics
such as wallet services, development of exchanges, the main development of the crypto currency
is done through the hike of bitcoin which is a primary crypto, it leads many people's to attract
them towards the crypto currency also the crypto industry have attracted the talent and the
people focusing on the market that is needed to help the industry in developing itself in broader
term.
Regulators :- the advancement of crypto is done by the specific people's of their own crypto,
which doesn't created the scope of regulatory bodies to handle the crypto industry, leading this
market to become tax-free and free of hurdles and cost involved in investing, which helps in
massive growth of the crypto currency. In 2009 when the crypto currency started it has less
number of platform top deal on, and have less impact on people but during 2019 the major hit in
crypto have made many people to invest in crypto and from that period the crypto started to
grow many people's, firm's have started accepting crypto as a payment of method, it has also
made the financial transaction that take place internationally to be easier and tax-free, as the data
of crypto is secure and is never being shared to anyone.
d. Technological platform and software used in cryptocurrency
In order to illustrate the technological platform that is being used for Cryptocurrency is
Blockchain. All types of cryptocurrency make use of distributed ledger technology namely
blockchain. It acts as decentralized system in order to record and document the transactions that
involves specific digital currency. The software that can be utilized in order to make the
cryptocurrency efficient is CGMiner which is the oldest mining software and best among all due
to its open source build, ability to run over any computer and highly compatible with multiple
mining hardware (Poongodi and et.al., 2020). The benefits of utilizing, this software is that it is
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an open source, runs over Mac, windows and Linux as well as compatible with ASIC, GPU and
FPGA. It is widely regarded as one of the best bitcoin mining software available due to its
simple interface with direct controls along with cross platform as well as cross hardware
characteristic (Othman, Alhabshi,and Haron, 2019).
e Type of organizations and businesses uses cryptocurrency
Cryptocurrency is well-known to general public as the time passes. As the technology
enhances, more and more companies are utilizing this special aspect in order to make their goods
and services highly effectual in nature. There are various kinds of businesses that adopt
cryptocurrency as payment for goods such as:
 Expedia: It is the company that adopt cryptocurrency in the form of Bitcoin. It involves
that once anybody will begin the transaction, then they are unable to cancel it (Higbee,
2018).
 Subway: It is also one of the major company which also utilizes cryptocurrency by
allowing Bitcoin to be traded for meal items.
 PayPal: PayPal also accepts Bitcoin as a form of payment. It is run through payment
processes such as GoCoin, Coinbase, etc. (Kamps and Kleinberg, 2018)
 Shopify: One can set their own online shop through Shopify. It is more like platforms
like eBay, Etsy, etc.
 Microsoft: It has been evaluated that Microsoft is the company who primarily utilizes
cryptocurrency but recently they announced they would stop accepting it but again
reversed the decision just days later.
 Pizzaforcoins: It is one of the early company that accept cryptocurrency. In fact, they
accept 50 different types of They are highly enthusiastic for cryptocurrency that it is the
only form of payment they accept. Actually, they are not connected with each and every
pizza restaurant in every city and town (Sai, Manikanta, 2019).
f The ways in which cryptocurrency is used as business tool as well as its effectiveness
The cryptocurrency has been utilized in a way which enables them for transactions. This
assist in business growth. Bitcoin have the ability to complete transactions and utilizes currency
with less to no hustle. Another way of using it is Internet of Money according to which Bitcoin
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have emerged as financial instrument that changes the way people execute their transactions. It s
final outcome states that business will able to provide their customers with more efficient way to
pay for products and services (Stosic and et.al., 2018). Another is the barrier breakthrough in
which Bitcoin enable businesses to use algorithms which allows financial transactions to occur
in real time (Kumar, Ajaz 2019).
Content and discussion on the nature of the relationship between digital technologies and both
old and newly emerging theories on business and management structures and practices
The relationship between the digital technology and crypto currency have started playing a vital
role in the economy, the crypto currency is the emerging business that have attracted so many
people's in the market (STEPANOVA,2018).
This platform is the trading platform that is used by everyone In the world for investment, it has
also lead to make a new business making mostly people working as a crypto trader, with the
increase in the use of digital technology the new concept of crypto trading is also increasing,
crypto currency is major innovation in the payment methods in which the normal person can
invest and enjoy the fluctuation. The crypto currency is totally based on digitalization as the
money invested in the crypto can be taken through wallet and by wallet which is an online
process (Nandal,Jora,2020).
The crypto have made an innovation in the area of investment market, where no one can regulate
the bars of trading, the trading techniques and the methods that are being used by the crypto
trader are also made digitally some of them are like SME, EME, peacock strategy etc. the
investment in the crypto currency can be made through online applications and web sites, which
are being used digitally and are also developed digitally, these digital platforms have their own
digital wallet letting the investor put their money safely in the application (Sigler, 2018).
Crypto currency is the new digital platform where a small analysis can make a person hero from
zero. The increase in the companies using the crypto as a payment methods have increased the
people's attraction towards the new era of digitalization where the companies are trusting the
non-regulatory body more than a regulatory body (Ajaz,. Kumar.2018). The digitalization is not
only changing the future of the economy but also changing the future of payment methods by the
use of digital crypto currency. In the last 2-3 years there are so many companies have built for
establishing there own crypto currency. The free business model is also being used in the crypto
currency as the methods by which a person can access the crypto are free of cost and it doesn't
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take any fee for transfer of payments. The application providing the platform of investing in
crypto currency some of them are also using Freemium model of digital business in which the
application gives some of the features for free of cost and takes money for the premium features
which includes the advanced level strategy of investing in the crypto currency. The fixed time
trade platforms of investing in the crypto currency, have used the digital business model which
is on demand in which the platform announce the price of subscription of some features and the
consumer pays for it (Kumar, Anandarao, 2019),
CONCLUSION
This report has discussed the importance of the cryptocurrency as the digital technology as well
as how this topic has developed in the overall world. Along with this, it has also discussed the
detailed description of the cryptocurrency and how these are used in the world that is the
working of the cryptocurrency. Further, it has discussed the what all technological platforms
have been used in the digital technology and Business as well as the types of the business which
uses this technology in their organization. Later, it will include how it has been used as the key
business tool and how much these are effective by relating it to the content and theories of the
business and management.
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REFERENCES
Books and Journals
Kamps, J. and Kleinberg, B., 2018. To the moon: defining and detecting cryptocurrency pump-
and-dumps.Crime Science,7(1), pp.1-18.
Poongodi, M. and et.al., 2020. Prediction of the price of Ethereum blockchain cryptocurrency in
an industrial finance system. Computers & Electrical Engineering, 81, p.106527.
Stosic, D. and et.al., 2018. Collective behavior of cryptocurrency price changes. A: Statistical
Mechanics and its Applications,507, pp.499-509.
Kumar, A.S. and Anandarao, S., 2019. Volatility spillover in crypto-currency markets: Some evidences from
GARCH and wavelet analysis.Physica A: Statistical Mechanics and its Applications,524, pp.448-458.
Sigler, K., 2018. Crypto-jacking: how cyber-criminals are exploiting the crypto-currency boom.Computer Fraud &
Security,2018(9), pp.12-14.
Nandal, N. and Jora, M.N., 2020. Impact of Household Income on Investors Attitude towards Crypto
CurrencyAnnals of the Romanian Society for Cell Biology, pp.449-458.
Kumar, A.S. and Ajaz, T., 2019. Co-movement in crypto-currency markets: evidences from wavelet
analysis.Financial Innovation,5(1), pp.1-17.
STEPANOVA, D.I., 2018. Factors of development and use of crypto currency.Мировая экономика: проблемы
безопасности, (1), pp.82-85.
Rathan, K., Sai, S.V. and Manikanta, T.S., 2019, April. Crypto-currency price prediction using decision tree and
regressin techniques. In 2019 3rd International Conference on Trends in Electronics and Informatics
(ICOEI)(pp. 190-194). IEEE.
Higbee, A., 2018. The role of crypto-currency in cybercrime. Computer Fraud & Security,2018(7), pp.13-15.
Othman, A.H.A., Alhabshi, S.M. and Haron, R., 2019. The effect of symmetric and asymmetric information on
volatility structure of crypto-currency markets: A case study of bitcoin currency.Journal of Financial
Economic Policy.
Ajaz, T. and Kumar, A.S., 2018. Herding in crypto-currency markets.Annals of Financial Economics, 13(02),
p.1850006.
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