The Future of Cryptocurrency: Opportunities and Challenges

Running head: FUTURE OF CRYPTOCURRENCY
FUTURE OF CRYPTOCURRENCY
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1FUTURE OF CRYPTOCURRENCY
Introduction:
Since the world is developed into so called modern society the medium of exchange
goods or services is transformed from a barter economy to money as certified paper issued by
government. Money is basically a piece of paper used to intermediate the exchange of goods.
Money is utilized by everyone to store a specific value in that. Employee agree to get money in
exchange for their effort (labor). Merchants sell their goods in exchange of money. The whole
transaction process of goods and services are held by utilizing money. According to Greek
philosopher Aristotle there are four criteria that assist to dictate what is considered to be “Good
Money”. It must be durable, portable, and divisible and must have intrinsic value. From the era
of barter to flat money, gold, metal, and coins continued by modern systems and checks and
validating with latest medium of currency developments (Extance, 2015). The most evolved
medium of transaction is crypto currency which began to emerge in late 2009 to assist fix some
of the issues. Crypto currency can be define as a digital currency which utilized cryptography for
better security. However, the focus around it heavily grows in 2017 whether value of one bit coin
(the most popular crypto currency) increased to 13,680 US dollar. Everyone these days prefer
digital transaction rather than typical cash exchange. Some experts believes, cryptocurrency is
the key of revolution to change the whole transaction process in term of durability, portability,
and divisibility. This paper investigates many resources associated with uncertain future of
cryptocurrency to develop a clear theory and demonstration. The writing also inquire many
possible uses of cryptocurrency which could be applicable in near future.

2FUTURE OF CRYPTOCURRENCY
Figure 1: use of digital Payment
Source :( Luther, 2016)
There are several opinion regarding the future of crypto currencies in general. Some with
emancipation views of life are embrace and optimistic the crypto currency while other are not
enthusiastic about the use of this type currency like bit coin for financial and payments transition.
It will be enable fast transaction of funds between multiple parties (Nian & Chuen, 2015). This
transaction will be held while measuring and ensuring security concerns, most likely by utilizing
private and public keys. This type of transaction will also propose minimal processing cost
unlike banks where steep fees are charged for most of the transaction.
On the other side, the crypto currency can be utilized financing illegal activities and
money laundry. According to Tymoigne, bit coins are illiquid and showed high price volatility
(Walton,, 2014). He also explained that why the discounted cash value of bit coin is zero. Crypto