Cryptocurrency Analysis and Investment

This assignment delves into the emerging field of cryptocurrency, analyzing its potential to revolutionize global markets. It identifies key stakeholders involved in the cryptocurrency ecosystem, explores both the advantages and risks associated with this technology, and examines the implications for various sectors and individuals. The analysis concludes by highlighting the transformative impact cryptocurrency could have on traditional financial systems and daily life.

Running head: CRYPTOCURRENCY
Cryptocurrency
Name of the Student
Name of the University
Author Note

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Executive summary
The following report discusses about the emergence of a new cryptocurrency. The main analysis
of the report includes the stakeholders that are important for the project. The report further
includes the benefits to the technology as well as the risks associated with it. The report further
includes the presence of industry standards that the company will comply.

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Table of Contents
Introduction:....................................................................................................................................3
Discussion:.......................................................................................................................................3
Definition of the technology:.......................................................................................................3
Stakeholders:................................................................................................................................4
Intellectual property protection:..................................................................................................6
Benefits of the technology:..........................................................................................................6
Drawbacks in the technology:.....................................................................................................7
Summary of the technology:........................................................................................................8
Conclusion:......................................................................................................................................8
References:......................................................................................................................................9

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Introduction:
Cryptocurrency is an asset of the digital medium that is used for transacting among
people. The main presence of these currencies does not have physical existence but they do have
a digital existence. The transactions are basically provided by the application of cryptography to
apply security in exchange as well as transactions. They are also known as virtual currencies and
the first cryptocurrency to have emerged globally is the Bitcoin.
The report includes an analysis of the technological advances going on in the concerned
company. In addition, the stakeholders associated are also included along with their benefits and
the risks associated.
Discussion:
The company associated is a small technical start-up which is responsible for the
production of a new cryptocurrency. In addition, the company also seeks out to a number of
stakeholders to help them advance in their project. The stakeholders are also right minded people
with the sole intention of contributing to the society along with return of investments.
Furthermore, it is considered that the investors are fully aware of their losing money in this
contribution.
Definition of the technology:
The company is considered with the emergence of a new cryptocurrency called the
alphacoin. The coin will be made to work in association to the blockchain network. Along with
the network, the coin will be digitally mined by the presence of miners to enable the
transparency of the network. As the currency is new, the company will do digital promotions in

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various networks to get popularity so that the alphacoin gets among the top list of digital
currencies. This will include the promotions in organic search engines, internet marketing forums
or blogs and the social media. The coin will also be made by complying with the blockchain
digital frameworks to avoid any legal or social problems in dealing with them. Along with this,
the company will also have a separate group of mining equipment for mining their own coins. In
addition, the company will also serve to store the coins in paperless digital and secured wallets.
This will allow the users to store or buy coins or sell them for money. The company will also
have stakeholders who will also aid in transactional benefits. Along with this, the coin wallets
will facilitate better security by applying artificial intelligence in facial recognition.
Fig 1: Alphacoin
(Source: Created by the author)
Stakeholders:
The various stakeholders who will be present for the advancement of the project are
included in this section of the report.

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1. The first stakeholder is the academic institutions who are in place for the support of digital
currencies. For example, the MIT’s Digital Currency Initiative is one such initiative that supports
the development and research of Bitcoin. In the same place, the company needs to give
presentations to similar types of institutes to support the cause.
2. The second associations are the trading associations. This is the main place which will be the
core process for business. The associative frameworks of the countries will be partnered with the
company to make this a successful project (Chatzopoulos et al. 2017). The coins will be mined
and stored in the trade offshore accounts. The company will then trade it with these associations
to do business. The business involves the buying or selling of the coins. One such example is the
Coinpayments that are responsible for accepting payments.
3. Local banks are the next set of stakeholders. As the company will provide the customers the
ability to buy or sell using the coins, the promotional usages of these banks will be required to
provide more transactions among the company. In addition, when a client decides to sell the
coins, money will be transferred to their accounts and the coins will be used to be traded with the
association to get profits. The banks will be responsible as worldwide customers will be
responsible for transactions which will require their assistance with legal regulations.
4. The customers are the next set of stakeholders who will be responsible for the buying and
selling of the coins. The main aspect of business is to change the financial market of the whole
world. This will be facilitated by the presence of customers.
5. The last set of stakeholders is the companies who will partner up with the company to provide
the ability to purchase the products using the alphacoin (Cocco, Concas and Marchesi 2017).
This includes various companies in e-commerce, retail and also hospitals that will allow
diagnosis over these currencies

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Intellectual property protection:
The property of the company is a rightful asset and the company need to protect this. As
such, the coins invented are needed to be complied with technologies. The most modern and
effective copyright framework present in the global market is the blockchain technology. This
technology allows the presence of monitoring trackers in the coins and can be used to monitor
the status of the transactions. The blockchain is a trademarked innovation in the market which
gives peace of mind to the clients and companies dealing with them (ElBahrawy et al. 2017).
Blockchain provides copyright protection for the coins and the will also be useful to the
customers for monitoring their payments. As the blockchain technologies have to be confirmed
before sending the money, a transactional hash algorithm will be present which will be
empowered by the blockchain technology. This hash will then be used to monitor the status of
the payment.
The next trade protections are the compliance with the standards set according to the
Coinpayments. This is the trade secret that the company will consider. The buying and selling of
the coins will be done by such options and the Coinpayments will facilitate the trading options.
The trading will be done by fixing a price which will be a bit lower than the market price. Along
with this, the price that is set in front of the customers will be a little bit more than the trading
price (Kim et al. 2016). This is supposedly the trading secret of the company and the sole place
of doing business. This will help the company to get the profit.
Benefits of the technology:
The most important benefit of cryptocurrency is the presence versatile payment options.
The other companies need to have alphacoin wallets so that they can start receiving funds
immediately. The customers will then be able to buy services and products without the need of

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giving their bank accounts. In case of overseas payments, the fees related to the transfer of funds
is also low which will help these companies to increase their market of operations.
In addition, the money stored in the wallets is very secure which is safer than the banks
(Kim et al. 2016). As the blockchain technology is applied to the currency, the awareness to such
technologies in the market will lead to new openings for the blockchain company. Along with
this, the banks will get more payment in terms of fees form the company as more people comes
in for storing their money in the form of digital currencies.
Another benefit for Coinpayments is their use in transactions. As the company will be
involved in the trading with the company, they will receive bulk orders and will thus get business
from the company.
The last benefit is that the fees are very low due to which the customers will be more
involved in the transactions involving the Alpha coins.
Drawbacks in the technology:
The first drawback is the lack of awareness among the people. It is seen that among the
global population, most of them are less aware of the presence of virtual currencies. This is the
sole reason which the company needs to focus on to get more business. In addition, the staffs are
to be educated to consider their recruitment in the company (Lehner, Hunzeker and Ziegler
2017). Due to the presence of small scope in the market, the promotions to be applied are huge
which will require a huge portion to be able to start getting customers.
In addition, the risks are great as these coins are mined. However, they have a difficulty
factor which increases for each blocks of coin mined. For example, the bitcoin was the first
cryptocurrency which emerged in 2008. People use to mine it by using their computers. Now-a-

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days, the computer is not enough to get the required coins mined. Hence, it will be difficult in the
future to keep up with the growing demand and the price per coin will go to a very high level.
Summary of the technology:
Although the presence of risks is evident, the benefit it provides is a much needed
improvisation to the global market. The various stakeholders will thus get advantage from the
investment and will also be able to contribute to the social development of the society. However,
the difficulty factor increases exponentially for every 2048 coins mined. So this will not be a
case of problems as the amount of coins circulating the market will increase in the future and the
transactional ease in the market will also increase. Thus, the point of concern is reduced due to
the technological factors and the benefits the coin provides.
Conclusion:
Thus, it is concluded from the analysis of the report that the cryptocurrency will be a new
innovation that has the potential to change the global markets. The list of stakeholders to be
considered is also included in the report along with their reasons for investing in the company.
Due to such innovations, the operations and the processes in the market will also changes where
these virtual currencies will become an integral part in people’s lives.

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References:
Chatzopoulos, D., Ahmadi, M., Kosta, S. and Hui, P., 2017. FlopCoin: A Cryptocurrency for
Computation Offloading. IEEE Transactions on Mobile Computing.
Cocco, L., Concas, G. and Marchesi, M., 2017. Using an artificial financial market for studying a
cryptocurrency market. Journal of Economic Interaction and Coordination, pp.1-21.
ElBahrawy, A., Alessandretti, L., Kandler, A., Pastor-Satorras, R. and Baronchelli, A., 2017.
Bitcoin ecology: Quantifying and modelling the long-term dynamics of the cryptocurrency
market. .
Gandal, N. and Halaburda, H., 2014. Competition in the Cryptocurrency Market.
Huckle, S.J., White, M. and Bhattacharya, R., 2017. Towards a post-cash society: An application
to convert fiat money into a cryptocurrency. First Monday, 22(3).
Kim, Y.B., Kim, J.G., Kim, W., Im, J.H., Kim, T.H., Kang, S.J. and Kim, C.H., 2016. Predicting
Fluctuations in Cryptocurrency Transactions Based on User Comments and Replies. PloS
one, 11(8), p.e0161197.
Lehner, E., Hunzeker, D. and Ziegler, J.R., 2017. Funding Science with Science: Cryptocurrency
and Independent Scientific Funding.
Narayanan, A., Bonneau, J., Felten, E., Miller, A. and Goldfeder, S., 2016. Bitcoin and
Cryptocurrency Technologies: A Comprehensive Introduction. Princeton University Press.
Park, S., Pietrzak, K., Alwen, J., Fuchsbauer, G. and Gazi, P., 2015. Spacecoin: A cryptocurrency
based on proofs of space (Vol. 528). IACR Cryptology ePrint Archive 2015.
Wustrow, E. and VanderSloot, B., 2016, August. DDoSCoin: Cryptocurrency with a Malicious
Proof-of-Work. In WOOT.