financial markets Assignment :Crypto currencies

Running Head: financial Markets
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Project Report: financial markets

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Contents
Question: 3........................................................................................................................3
a) Crypto currencies origin, scope and concept............................................................3
b) Crypto currencies and their features.........................................................................3
c) Interesting facts about the crypto currencies............................................................6
d) Future prospect of crypto currencies........................................................................6
References.........................................................................................................................8

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Question: 3
a) Crypto currencies origin, scope and concept:
Crypto currency is a digital asset which has been designed to work as an exchange
medium. The currency is used to secure the transactions through verifying the transfer of
assets and control the making of additional units. Crypto currencies use cryptographic rules
and protocols. It is extremely complex system which encrypts the transfer of sensitivity data
transfers (Bolt, 2017). Crypto currencies have been built by the developers on the basis of
advanced mathematical version which is impossible to break and hence the duplicity problem
is not there.
Initially, in 1983 David Chaum, American cryptographer, has conceived an
anonymous currency called e-cash. David Chaum has invented an algorithm of “Blinding”
which remains in centre to modernize the web based encryption. The e-cash invented by
David Chaum has known as “Blinded money”. At initial stage, the Chaum’s company was
the only company to supply and control over the crypto currencies. After, this era, various
crypto currencies have come into the market with advanced version to make it easier for the
people to exchange the assets and the currencies (Watson, 2018). The first decentralized
crypto currency was Bitcoin which has been created in 2009.
Crypto currencies could be known as digital gold. It is the sound money which
insecure from any political influence. Crypto currencies are the fastest and the comfortable
way for the people to payment worldwide (Narayanan et al, 2016). These payments are
private and these payments are anonymous enough to serve the customers as a means of
payment for black market or any outlawed economic activity. The crypto currencies are also
used by the users for the speculation and the store of value that dwarfs the imbursement actor.
Crypto currencies have invented the incredible dynamic place and the fastest growing market
for the speculators and the investors (Vigna and Casey, 2016).
Various crypto currencies are available in the market which is used by the speculators
and the investors as a medium of payment. These all the crypto currencies have different
features and used by the people for different purpose. Though, it has been found that these are
one of the fastest way to payment someone.

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b) Crypto currencies and their features:
Various crypto currencies are trading in the market which is used by the speculators
and the investors as a medium of payment. These all the crypto currencies have different
features and used by the people for different purpose. Some of them are as follows along with
their different features:
Crypto currency Name Features
Bitcoin 1. Bitcoin is one of the famous currencies which
have been invented in 2009. The current market
capital of the Bitcoin is 1590.5 billion and the
rising rate of Bitcoin is 1590.5%.
2. Bitcoin is a peer to peer version of electronic cash
which allows the online payment to people to send
the amount directly from one person to other
without involving any financial institute (Watson,
2018).
3. Bitcoin runs on a technology which is called
“Blockchain”. It is decentralized because there no
central authority is involving in the transactions.
Instead, a network of “miners” along with high
powered and advanced computers that work
together to acknowledge the complex
cryptography.
Ethereum 1. The current market capital of the Ethereum is $
71.1 billion and the rising rate of Ethereum is
8812.6%. It is “Blockchain” company which has
made a digital token.
2. The technology used by Ethereum is quite
different than Bitcoin as it focuses on a specific
use case which is smart contracts. It is prone and
arduous to error as it updates each party

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individually about the contract.
3. Ethereum runs on a technology which is called
“Blockchain” (Cooper et al, 2017). It is
centralized because all the parties of the contract
are updated individually by the company about
their process and the payment.
Ripple 1. The current market capital of the Ripple is $ 21.8
billion and the rising rate of Ethereum is 8479.8%.
It is a cross border payment solution for the big
financial institution.
2. The technology used by Ripple is slightly
different than Bitcoin as it only focuses in the
cross border payment solution. Ripple is currently
focusing on resolving the issues of the bank in
which high efforts are involved of the bank to
transfer the money from a local bank to
international bank (Paul, 2015).
3. The digital currency of Ripple is known as XRP
which could be used by the enterprise to get the
liquidity instantly which is required for the high
value transactions. Entrepreneurs are not required
to pay any fee for this.
Litecoin 1. The current market capital of the Litecoin is $
16.5 billion and the rising rate of Ethereum is
6859.6%. It is faster than the Bitcoin. It is the
closest rival of Bitcoin.
2. The technology used by Litecoin is quite
impressive as it only takes 2 minute to complete
the transaction which is quite lower than other

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crypto currencies.
3. The process and the operations of Litecoin are
quite similar to Bitcoin. The only difference
among the operations in number of coins.
Currently there are 54,293,533 litecoins and
16,740,175 Bitcoins are trading in the market
(Mokhtarian and Lindgren, 2017).
Bitcoin Cash 1. The current market capital of the Bitcoin cash is $
33 billion and the rising rate of Bitcoin cash is
229.6%.
2. Bitcoin has offered the Bitcoin cash to Bitcoin
holders (Blot, 2017).
3. Bitcoin runs on the same technology on which
Bitcoin is run.
c) Interesting facts about the crypto currencies:
1. The crypto currencies are extreme volatile in nature. The growth rate of all the
currencies is in hundreds (Chuen, 2015).
2. There is no fundamental backing of all the currency. If the details of the wallet of
crypto currencies have been lose than surely the party has lost all the currency.
3. More than 1500 currencies are there around the world and all are used by the
speculators and the investors to make payment (Ross, 2017).
4. The exact value of the crypto currency lies in the Blockchain.
5. More than 6 million wallets are there which uses the crypto currency to make
payments and get the money.
d) Future prospect of crypto currencies:
1. According to the market trend, crypto currency is going to replace the national
currencies by 2030 (Wegdell and Andersson, 2014).

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2. The value of the crypto currency would be continued to be cyclic.
3. The trade and the commercial activities would be drastically changed due to crypto
currency.
4. The number of wallets would reach to the limit of billions in next 5years (Icahn,
2017).
5. The technology would be changed and thus less time would be taken to transact the
money.

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References:
Bolt, W., 2017. Bitcoin and Cryptocurrency Technologies: A Comprehensive Introduction.
Pearson.
Chuen, D.L.K. ed., 2015. Handbook of digital currency: Bitcoin, innovation, financial
instruments, and big data. Academic Press.
Cooper, J., Morris, C., Marks, S., Daniel, R., Kiyoko, H. and Emerson, M., 2017. Blockchain
and Cryptocurrency Mega Bundle-6 Manuscripts in 1 Book: This Box Set includes books on
Blockchain, Investing in Bitcoin, Ethereum and other Cryptocurrencies, and much more!
Create space independent publishing platform. ISBN:1979216703.
Icahn, G., 2017. Cryptocurrency: Cryptocurrency, Blockhain, Ethereum & Bitcoin-The
Complete Guide To Understanding Fintech. Pearson.
Mokhtarian, E. and Lindgren, A., 2017. Rise of the Crypto Hedge Fund: Operational Issues
and Best Practices for Institutional Cryptocurrency Trading. Stanford Journal of Law,
Business, and Finance, Forthcoming.
Narayanan, A., Bonneau, J., Felten, E., Miller, A. and Goldfeder, S., 2016. Bitcoin and
Cryptocurrency Technologies: A Comprehensive Introduction. Princeton University Press.
Paul, V., 2015. Casey Michael The Age of Cryptocurrency: How Bitcoin and the Blockchain
Are Challenging the Global Economic Order. Vigna Paul, Casey Michael–K.: Economic,
pp.200-210.
Ross, E.S., 2017. NOTE & COMMENT ARTICLE: NOBODY PUTS BLOCKCHAIN IN A
CORNER: THE DISRUPTIVE ROLE OF BLOCKCHAIN TECHNOLOGY IN THE
FINANCIAL SERVICES INDUSTRY AND CURRENT REGULATORY ISSUES. Cath.
UJL & Tech., 25, pp.353-447.
Vigna, P. and Casey, M.J., 2016. The age of cryptocurrency: how bitcoin and the blockchain
are challenging the global economic order. Macmillan.
Watson, L., 2018. Cryptocurrency Investing Bible: The Ultimate Guide to Unlock the Secrets
of Bitcoin, Blockchain and Cryptocurrency, Bitcoin Investment Tips for Success. Create
space independent publishing platform. ISBN:1979216703.