Cryptocurrency Research and Policy Analysis

This assignment involves a thorough analysis of cryptocurrency technologies, including Bitcoin and blockchain. It also explores the potential impact of digital currencies on monetary policy, considering various research papers, patents, and online resources. The student is expected to demonstrate in-depth knowledge of the subject matter and provide a well-structured paper with a clear summary of the findings.

CRYPTOCURRENCIES AND THEIR IMPACTS ON
MONETARY POLICY

Table of Contents
CHAPTER 1: INTRODUCTION.....................................................................................................................1
1.1 Background.......................................................................................................................1
1.2 Research questions...........................................................................................................2
1.3 Research objectives..........................................................................................................2
1.4 Significance of the study..................................................................................................3
1.5 Thesis structure.................................................................................................................4
CHAPTER 2: LITERATURE REVIEW .........................................................................................................5
2.1 Concept of cryptocurrencies.............................................................................................5
2.2 Different kinds of cryptocurrencies..................................................................................6
2.3 Definition of monetary policies........................................................................................9
2.4 Quantity theory of money...............................................................................................10
2.5 Mises regression theorem...............................................................................................11
2.6 Cryptocurrencies as medium of exchange......................................................................12
2.7 Fiat currency vs. digital currency...................................................................................13
2.8 Recent researches...........................................................................................................15
2.9 The rapid spread and use of cryptocurrencies................................................................15
2.10 Cryptocurrencies Monetary Policy...............................................................................16
2.11 Regulatory landscape of digital currencies in the US..................................................16
2.12 Economic and Legal aspects of cryptocurrencies........................................................17
2.13 Cryptocurrencies and their impact on Monetary policy in the United States...............17
2.14 Prediction on the effects Cryptocurrencies will present in future................................18
CHAPTER 3: RESEARCH METHODOLOGY ...........................................................................................18
3.1 Research design..............................................................................................................19
3.2 Research Instruments......................................................................................................21
3.3 Data Collection...............................................................................................................23
3.4 Research Ethics..............................................................................................................25
3.5 Data Analysis..................................................................................................................26
3.6 Research Reliability and Validity...................................................................................26
CHAPTER 4: FINDINGS AND DISCUSSIONS .........................................................................................26
Key Findings/Results............................................................................................................26
How do cryptocurrencies impact on the Monetary policy in the US...................................26

Discussion.............................................................................................................................26
CHAPTER 5: CONCLUSION AND RECOMMENDATION .....................................................................26
Summary of Major Findings................................................................................................26
Recommendations................................................................................................................26
Limitations of the Study ......................................................................................................26
Suggestions for Future Research..........................................................................................26
REFERENCES...............................................................................................................................................27
APPENDIX.....................................................................................................................................................31
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CHAPTER 1: INTRODUCTION
1.1 Background
Cryptocurrency is considered as the digital assets that serve as a medium of exchange. It
is the form of digital money in which cryptography method is being used in order to convert
legible information into uncrackable code (Pieters, 2017). It is the type of virtual currency in
which concerned authorities use encryption techniques for generating units of currency and
secure transfer of funds. Bitcoin was the first open source software that was introduced in market
in the year 2009. It works on decentralized cryptocurrency method. Bitcoin is the first electronic
cash system that prevents public from double spending. It is decentralized system in which no
central authority exists. Bitcoin was developed by Satoshi, initially all attempts were failed but
later on, Satoshi had built digital cash system by using peer to peer network. Cryptocurrencies
ensure efficiency in financial proceedings and reducing transactions cost (LeBlanc, 2016).
Cryptocurrencies impact on the monetary policies to a great extent; it is essential for the
economic benefits. It plays a significant role in production of money in the nation. The
fundamental reason of introducing Bitcoin; a decentralised system was to record immutably
monetary transactions. This digital money transactions system has supported in improving the
economic condition of nation. Bitcoin system is the unexplored zone for central banks globally.
Now, electronic cash transaction system has supported suppliers in sending money from one
country to another without involving central banks or intermediaries (Bitcoin may have
implications for monetary policy, 2017). These transactions are recorded in block chain but this
block chain system does not disclose that whether the transaction was within nation or across the
border.
In the year 2013, United Stated had faced banking crisis situation. After that, authorities
have made limitations on daily money supply. It has been restricted to 300 per day. After this
crisis, banks have restricted using cheques and banned high amount of cash transfer. After this
restriction, it was very difficult for the suppliers in sending money to other nations. But,
cryptocurrencies methods such as bitcoin have helped people in sending money to other
countries easily just like sending email to other person (The Effects of Electronic Payments on
Monetary Policies andCentral Banks, 2015). Due to fluctuations in economy conditions
electronic payment system is in high demand. In the year 2013, Cypriot banking crisis has taken
place that has created fear in capital market in entire region. But this has helped in the raising
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prices of bitcoin from about 15 to 200. Interest of Chinese market was increasing due to which in
third quarter of 2013, prices got increased.
With the increasing pricing, interest of public was enhancing as well and thus, more
electronic transactions were taking place through electronic payment system. This has affected
the monetary policies significantly (Can digital/crypto currencies influence monetary policy,
2017). Quantity theory of money explains that if velocity of money and real output of economy
are constant then it can enhance price level which may cause inflation in country that impacts on
economic condition of the nation to a great extent. Bitcoin system has affected US Dollar Federal
Reserve monetary policies. If bitcoin electronic payment system is being used in high amount
then velocity of money can be increased. In such condition, inflation can get arise. In the
inflation status, central bank of country has to decrease money supply in order to maintain
economic condition of region. Cryptocurrencies highly impact on the macroeconomic stability of
region. This is associated with dollarization like effects such as re denomination of assets
(Bitcoin may have implications for monetary policy, 2017).
Present study will discuss the impact of cryptocurrencies on monetary policies of US. It
will explain the kinds of cryptocurrencies that are used in market. Furthermore, it will explain
Mises regression theorem. Furthermore, research will describe fiat currency vs. digital currency.
Economic and Legal aspects of cryptocurrencies will be discussed in this dissertation.
1.2 Research questions
Aim
“To identify the impact of cryptocurrencies on monetary policies: A study on United States”
Based on the above aim of the investigation, the research questions that can be framed are
as follows:
 What is the core concept of cryptocurrency?
 What are the various types of cryptocurrency?
 What is the impact of cryptocurrency on overall monetary policies of the country?
1.3 Research objectives
Based on the above aim being framed, following research objectives can be formulated:
 To understand the concept of cryptocurrency
 To prepare an assessment of various types of cryptocurrency
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 To assess the impact of cryptocurrency on overall monetary policies of country
1.4 Significance of the study
It is quite important for the researcher to choose a topic that is significant enough and is
able to serve purpose of one or tother aspects. The present study deals with understanding
concept of cryptocurrency and its impact on monetary policy formation of country.
Cryptocurrency is the digital currency in which encryption techniques are taken into
consideration (Iwamura, Kitamura and Matsumoto, 2014). It helps in regulation of generated
units of the currency in a manner that verified funds can be transferred. It has the characteristics
and advantages of being operated through central bank independently (Scott, 2016).
Cryptocurrency is considered to be a future of currencies in the coming period. It is inclusive of
certain blockchain technology as uses cryptograph so as to generate money and verify certain
transactions. Since, it is a technical term and people may be required to generate informtiona
regarding the same so as to ensure that they are aware of it before entering into a virtual currency
market; it becomes important to gather adequate knowledge about it (Ametrano, 2016).
Another important aspect that is related to cryptocurrency is that it has been able to grab
the eyeballs of various investment intuitions when suddenly some of the cryptocurrencies raised
in the market. One of the most famous out of it is Bitcoin. It is the new investment trend that
various countries have been experiencing these days. Various people who tried to make
investment in it have been able to gather benefits out of it in an unimaginable manner. It has
increased the interest of various people. Since, cryptocurrency is a low-cost means, one does not
have to sell out money so as to gain and exchange digital returns. An individual is just required
to deal with the help of mobile phone and an internet connection. It is due to easy and effective
method in which people can easily deal is also making them attracted towards cryptocurrency
format (Fry and Cheah, 2016).
In majority of the digital currencies, an individual is required to pay for transaction. It is
the transaction charge which is present in case of other digital currencies. However, in case of
digital currency, there is no transaction charge involved in it. The people who are involved in
dealing with the cryptocurrencies are called as miners and get compensated from the network
itself. In this scenario, they are not liable to pay any transaction cost for any of the dealings. It is
due to this reason, majority of the individuals opt for cryptocurrency transactions (Hileman and
Rauchs, 2017).
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In order to serve all these functions, adequate efforts will be made to make the readers
aware regarding various aspects of cryptocurrency. The research will also be responsible of
making them aware regarding impact on monetary policies due to existence of this type of
cryptographic currency. Hence, the research is quite significant to develop the knowledge of
readers and policy makers with respect to cryptocurrency.
1.5 Thesis structure
Structure of the thesis is described as below:
Chapter 1 Introduction: It would be the first section in which brief discussion about
cryptocurrencies and its impact on US monetary policies will be done. In this section, scholar
will define aim and objectives of the research (LeBlanc, 2016). Furthermore, significance of the
research will be discussed in this study.
Chapter 2 Literature review: It would be the next part in which various literatures of other
authors on same topic will be involved. This would be the most important part of study as by
reviewing literature of other authors, scholar will be able to develop in-depth understanding
about cryptocurrencies and its impact on US monetary policies (Pieters, 2017).
Chapter 3 Research methodology: It would be the next part of dissertation in which scholar
will select appropriate research methods that will help scholar in carrying out study in an
effective manner. Research methods support researcher in identifying the way of conducting
entire investigation. Hence, in order to serve this purpose, the chapter will be important to
ascertain and find out research approach, philosophy, type of investigation, etc. Research
methodology will also be responsible for discussing the data collection methods and its analysis
that have been opted for research purpose. At the end, reliability and validity of the research will
be identified and signified that all important aspects have already been taken care of by
researcher (Hayes, 2017).
Chapter 4 Findings and Discussion: It is another most important chapter of overall dissertation
which helps in ascertaining findings based on data that has been collected by researcher on stated
subject. The chapter also discusses regarding various important topics of research and helps in
developing a clear understanding regarding cryptocurrency. Thematic analysis will be conducted
in this research chapter where themes will be formulated so as to ascertain important aspect of
the research and discuss on its key points. The chapter will then be responsible for determining
various loopholes that may be noticed in the presented research by other researcher which must
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have been assessed with help of secondary study. The chapter will be further divided into two
subparts, where first part will discuss regarding findings and results being collected by
researcher. It also discusses other sub parts which help in creating discussion with respect to
key points (Gandal and Halaburda, 2014).
Chapter 5: Conclusion and recommendations: It is one of the most important chapters of
whole dissertation which helps in developing key understanding regarding stated topic. It also
helps in ensuring key and specific points that have been covered by researcher. The overall
chapter will be further divided into four subparts. The first part will be responsible for discussing
summary of major findings based on what has actually being collected in the form of secondary
literature. The second sub part of this chapter discusses regarding recommendations that can be
extended to the policy makers with respect to formation of monetary policies in the country
(Park, Fuchsbauer and Gazi, 2015). It will also be responsible of examining various loopholes in
the current policy frameworks and steps that can be initiated to bring change and make it quite
effective. The third sub part of this chapter will be responsible to various assess various
limitations of the study where all restrictions that have been taken into consideration while
conducting this research so as to make readers aware about it. At the end, fourth subpart of
chapter, that is, suggestions for future research will help in mentioning suggestion of various
topics on which research can be conducted by researcher so as to gain concrete as well as
specific knowledge regarding cryptocurrency.
CHAPTER 2: LITERATURE REVIEW
2.1 Concept of cryptocurrencies
According to Delmolino and Shi, (2016) cryptocurrency is a digital currency which
involves encryption techniques that can be used in regulation and generation of currency and
verifying the transfer of funds. It is generally operated though central bank and do not have to
deal with any other bank in between. One of the most common yet modern example of
cryptocurrency is bitcoin which has now been able to offer an outlet for personal wealth beyond
any type of confiscation and restrictions. It has been considered that encrypted currency is one
of the safest as well as trusted kind of digital technology that people tend to prefer these days.
There are various robberies and looters present in the world and currency must be placed at the
safest place possible so as to ensure that their investment is safely present. Encrypted currency
helps in giving this type of assurance to people which makes it an important source of investment
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for people. Hence, it has been forecasted that this type of currency will play an important role in
the coming years as well. However, in contrast to this, as per the views of Narayanan, Miller and
Goldfeder, (2016) there is another reason present as well which makes encrypted currency an
important aspect. It is due their policies that has been framed by its authorities, due to which
majority of people makes a demand of investing in it. In this scenario, an individual, investing or
planning to invest in this type of currency, do not have to deal with any kind of third party.
However, they can directly deal with the parties from which investment related to crypto
currency have been made. It helps in giving the reassurance to the investors that their money is
safe with them and can also decide their investment portfolios individually as well. There are no
boundaries with respect to location as well. Hence, the investor or the individual who is planning
to invest can directly contact to the organization offering crypto currency rather than having any
type of third party in between. One has the right to gather all the cryptocurrencies in safe wallet
and store it in it. It gives an opportunity to safe the wallet which are available of two kinds. It can
help in transferring of money to the account. Further, there is no amount charged from the
investor with respect to the storage of digital currencies. The individual is the only person who is
involved in management of account and hence there is no involvement of third party in it.
2.2 Different kinds of cryptocurrencies
According to Herbert and Litchfield, (2015) Bitcoin is the new trend setter, which has been
able to decentralise peer to peer network of various investors. All the currencies that have
inspired by the Bitcoins are called as Altcoins and they have been trying to represent themselves
as the modified version of Bitcoin. There are certain currencies who have the capability to be
mined in comparison to that of Bitcoin. It can have greater risk, however, brought on lesser
liquidity, value retention and acceptance. Although the prices of Bitcoin are soaring high, there
are other types of cryptocurrencies as well that can help the investors to invest in them. However,
in contrast to this, as per the views of Li and Wang, (2017) there are various types of
cryptocurrency are available in the market, which can be used by the investors and other
payment initiators, to be used in a well-defined manner. It helps in making the overall payment
aspect easy in the way that people do not have to get involved with any third party and can have
direct contact to the merchant in case of any issue. Crypto currency have been widely used
aspects that has been able to gain popularity these days. However, it has not yet being adopted as
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a legal instrument in all the countries, some of them have managed to initiate the same as a legal
instrument of initiating transactions.
According to Evans-Pughe, Novikov and Vitaliev, (2014) Litecoin was actually introduced
in 2011 and was one of the cryptocurrencies of initial times after the introduction of Bitcoin. It is
often referred as “Silver to Bitcoin’s gold”. It was actually created by an MIT graduate and
former engineer in Google, named, Charlie Lee. Litecoin is based upon the strategy where it is
mentioned as an open source to the global network for payment aspects. It is not controlled by
any of the central authorities. It is indulged in using scrypt, as its proof of work. It can easily be
decoded with the help of basic CPU belonging to consumer grade. However, there are various
similarities between Litecoin and Bitcoin, but it is inclusive of certain better functions as well. It
has been able to enjoy faster block generation rate and hence is able to offer faster transaction
confirmation in comparison to that of other cryptocurrency aspects. There are various merchants
who have started accepting Litecoin as a basic payment aspect. However, in comparison to this,
as per the views of Narayanan and et.al., (2016) Ethereum is another type of cryptocurrency
which was launched in 2015. It is a decentralised platform of software which helps in allowing
Smart Contracts and Distributed Applications to be built and run without any type of downtime,
control, interference of the third party and fraud. This has been able to receive an overwhelming
response from the side of consumers. The applications, which tend o run on its platform, are able
to gain cryptographic token, which is known as Ether. Ethereum platform has been further
divided into two parts. These splits are, Ethereum (ETH) and Ethereum Classic (ETC). ETH has
been able to gain market capitalization of $41.4 billion, which stands on second after Bitcoin
among all the other cryptocurrencies available.
According to Hughes and Middlebrook, (2015) Zcash (ZEC) is also a decentralized and an
open source of cryptocurrency which was actually launched in the later months of 2016. It has
the ability to provide privacy and can also have selective amount of transparency to the
transactions. However, Zcash has been able to provide extra security and privacy to its
customers, where each and every transaction is checked, recoded and then published on a
blockchain. There are various aspects that are kept private, which includes, amount, sender and
recipient. The customers also have the choice to opt for shielded transactions which helps in
making the content encrypted with the help of zero knowledge proof construction, called as
SNARK. However, in comparison to this, as per the views of Abramaowicz, (2016) other type of
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cryptocurrency is Dash, which is originally called as, Darkcoin. It has been able to successfully
initiate anonymity in transactions. It is called as one of the most secretive versions of Bitcoin. It
works upon decentralised master code network that can help in initiating some untraceable
transactions. It was launched in January 2014, which has been able to experience a large number
of database in quite a short duration. It was basically developed by Evan Duffield which can
easily be mined with the help of CPU and GPU. In March 2015, Darkcoin wash rebranded to be
Dash and it was actually accepted by the people in more effective manner. However, it did not
bring any type of changes in the technological aspects while opening it to the public.
According to Brenig, Accorsi and Müller, (2015) Ripple is another type of cryptocurrency
which is called as, real-time global settlement network which helps in offering certain, instant
and low cost international payments. It helps in settling down cross border payments in real time
with adequate amount of transparency in the transactions at the maximum possible lower cost. It
was initially released in 2012. In its initial years, it was not able to gain adequate amount of
profits due to decreased use of crypto currency in the country. It has been able to gain adequate
amount of awareness, where its market capitalization happens to be $1.26 billion. Since, there is
no requirement of any type of mining in case of Ripple. It is believed that distributing value is a
powerful way to incentivize certain behaviour. It is able to increase the liquidity of consumers,
where, institutional buyers are allowed to make payments who are interested in investing this
type of cryptographic investment platform. However, in contrast to this as per the views of
Darlington III, (2014) Monero is another type of cryptocurrency, which is private, secure as well
as untraceable. It was launched in April 2014. It was able to enhance and develop cryptography
interest among various individuals at that time. It was able to grab the eyeballs of various
investors and payment drivers, about its existence. It is completely donation-based community
driven currency. The main focus of Monero, when it was launched was on scalability and
decentralization. It was enabling to complete privacy aspects with the help of various special
techniques called, “ring signatures”. The technique has helped in developing cryptographic
signature of at least on real participants and the aspect is quite validated as well.
According to Darlington III, (2014) the most common type of cryptography that is Bitcoin.
However, there are other cryptocurrencies as well which have been able to gain adequate amount
if popularity. Other virtual currencies such, as Ripple and Ethereum are widely popular among
individuals.
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2.3 Definition of monetary policies
According to Minor and Bitreserve Ltd, (2015) monetary policy is the essential process
which helps in controlling either the cost of very short term borrowing or the overall monetary
base. The authorities often target to alter inflation rate and interest rate so as to ensure price
stability in the market and ensure that appropriate exchange rate of the available currency. The
main objective of issuance of monetary policy is to contribute towards overall stability of Gross
Domestic Product (GDP) which ultimately helps in dealing with low unemployment rate,
achieve predictable exchange rates with other countries and maintain adequate amount of
revenues. There are various economists, who have been able to give their views regarding
crafting of policies, that can ultimately help in better development of optimal monetary policies.
In the developed countries, fiscal policies are framed separately to the monetary policies, which
is inclusive of government spending, taxation and associated borrowings. However, as per the
views of Dvorak and et.al., (2015) monetary policies can be framed so as to expand or contract
the policies either in the form of polices or through retrenchment aspects. Expansion policy are
taken into consideration by the authorities, when one uses to stimulate the economy. It is
important for the management to maintain short term interest rates in comparison to that of other
usual rates or in the form of increase in total supply of money which helps in overall expansion
of economy in comparison to that of the usual one. However, in case of contractionary policies,
it helps in reducing the overall supply of money in the economy in the manner that interest rates
can be increased which ultimately leads to availability of lesser money. Increase of decrease in
aggregate demand is the other factor that is taken into consideration so as to enhance short term
growth in the economy as it leads to bring enhancement in overall Gross Domestic Product
(GDP) of the country. Expansionary monetary policies usually lead to diminishing the overall
value of currency in comparison to the other currencies that are available in the market.
According to Dvorak and et.al., (2015) monetary policy generally consists of the actions
that are taken by the central bank with the help of other regulatory boards and committee that can
help in determining the size and overall growth rate linked to money supply which ultimately
have a greater impact on prevailing interest rates of the country. There are certain actions that are
taken by the authorities, such as, buying or selling of government bodies, bringing modifications
in interest rate, changing overall amounts of bank in the for m of bank reserves, etc. However, in
comparison to this, as per the views of Herbert and Litchfield, (2015) there are various tools that
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are used by central bank so as to shape overall monetary policies of the country. One such
aspects is open market operations, which have direct impact of overall money supply with the
help of buying and selling of term government bonds. Benchmarking interest rates in the form of
MIBOR and LIBIOR and fed Fund rate also affect the raising demand of money. It helps in
increasing or decreasing the overall cost of borrowing. Policy makers also manage the risk in the
banking system by mandating the overall reserves aspects so as to ensure that adequate amount
of money is available to them at the time of crisis. Inflation and deflation aspects are also
controlled with the help of effective monetary policies of the country.
According to Narayanan and et.al., (2016) another important aspect related to monetary
policies is that it helps in maintain the liquidity aspect of the economy, which ultimately leads to
initiate economic growth. Liquidity can be ascertained with the help of checks, cash, credit and
money market mutual funds in the economy. The primary objective of central bank is to manage
inflation and the second objective is to reduce overall unemployment prevailing in the market.
There are specific targets that are required to be achieved in a manner that overall objectives of
the authorities can be fulfilled. It also helps in ensuring that adequate amount of money is
available in the market. However, in comparison to this, as per the views of Abramaowicz,
(2016) it is important to keep an eye on the economy and understand that which type of
monetary policy is required to be initiated in the market so as to ensure healthy economic
growth. Further, ensuring that appropriate amount of money is available in the market so as to
ensure that a healthy growth is initiated in the economy. Maintain a high employment rate also
helps in confirming that a healthy as well as effective social status is present in the country.
2.4 Quantity theory of money
In the opinion of Brenig, Accorsi and Müller, (2015) quantity theory of money helps in
stating that there is direct relationship between the amounts of money available with the country
and level of prices of goods and services that are purchased or sold in the country. The concept
helps in ensuring and assessing that what amount of money is actually available in the market.
Researchers stated that more money in the market reflects more inflation and an overall increase
in the supply of money does not necessarily indicates increase in economic outputs of the
country as well. The theory indicates that percentage amount of increase in the availability of
money in the market is directly proportional to price made available of various goods and
services. This scenario clearly depicts availability of inflation in the country which may require
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help from the side of monetary policies. However, in contrast to this, as per the views of Hughes
and Middlebrook, (2015) understanding the quantity theory of money from other perspective,
money is recognized to be similar to that of another commodity. Increase in its supply can then
leads to decrease marginal value of the currency. Hence, it can be stated that an increase in
supply o money in the market may lead to enhance the prices of commodities, goods and
services as well. It acts as a compensation for decrease in overall marginal value off the
company.
According to Herbert and Litchfield, (2015) quantity theory of money states that general
price level of goods and services in the market is directly proportional to amount of money in
circulation. Hence, it becomes important to manage the amount of money in the market with the
help of various methods of monetary policies. Adequate amount of money in the market helps in
ensuring abundance of money is available to the customers so as to serve the functions which are
basic enough to be present in the market.
2.5 Mises regression theorem
According to Darlington III, (2014) regression theorem which Mises applies is related to
subjective theory of value to objective exchange of value or enhancing the overall purchasing
power as well. As per the regression theorem, emergence of any type of medium of exchange,
where a particular good was once valued only for the direct services that is actually provided by
it, has now been valued as becoming a function in indirect exchange aspects. Researcher states
that Bitcoin or any other type of cryptocurrency generally fits to a broad category of medium of
exchange. Applying the theorem to the concept of Misses regression theorem, it can be stated
that, cryptocurrencies can never be valued directly and certainly cannot be treated as other
commodities present in the market, such as gold. It shows that the theorem being given remains
intact. However, in contrast to this, as per the views of Lingappa and Visa International Service
Association, (2015) the interpretation of Mises regression theorem with the help of two concepts.
The first is Bitcoin had some prior value before it became any type of medium of exchange. The
second concept is related to involving the value generated though it to an intangible good. The
theory has been able to explain and violate regression theorem on the grounds of direct value and
the basis of cryptocurrency have high dependence on indirect value which can not be possessed
by the individual in some physical attributes.
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2.6 Cryptocurrencies as medium of exchange
According to Blocki and Zhou, (2016) cryptocurrencies is designed in the form of money
like goods. It has the characteristics of being durable, divisible, portable, fungible, recognizable,
hard to counter fiat and scarce. It has been able to reasonably be accepted widely which can be
purchased as well as sold very easily in the world. One can get it transferred to the debit card of
Bitcoin in order to spend in on regular basis. However, the value of Bitcoin is volatile in nature,
the individual can experience instability that makes that supply, unexpected and cannot be
predetermined. However, in comparison to this, as per the views of Chepurnoy and et.al., (2017)
there are three properties of cryptocurrency which makes it difficult to be used as a medium of
exchange, such as of money. It leads to low requirement of trust and separate it from any other
type of medium of exchange. One such aspect is censorship resistant, where, nobody has right to
block or intercept a amount that has been transferred. No permission is required in case of
cryptography, to use it and one can directly get the software installed and using the same in the
form of sending or receiving payments. No individual gets the right to seize or freeze the
accounts that can be hold by one or the other individual. However, the main issue that can be
faced is that if the transaction has ben made once, then in that case, it is difficult to get it
reversed. There is no identity card required so as to start using cryptographic currency. It can be
an effective method of dealing for people who are privacy conscious, unbanked people, minors,
etc. This aspect can also work in a negative manner for certain countries.
According to Schaffner and Sequitur Labs Inc, (2015) unlike common medium of
exchange, such as money, cryptographic currencies, since, it is a wallet software, there will be a
requirement of cryptographic checks while performing any type of sending or receiving
transactions. Hence, it makes impossible to fake a cryptography account. Since, it works over the
internet, the value remains same all overall the world and geographical borders do not bring any
type of change in the value of currency and thereby in the profit and loss incurred as well.
However, if any individual indulges in publishing the public key, then in that case, all the
transactions of the individual will be revealed and one can see all the transfer of blockchain
being make by the person. There is no public holiday or any type of day off, hence, one can
make transactions 24 hours and 365 days. There is not time at which an individual has to start
transactions with cryptocurrency, in this scenario, an individual can start transacting instantly
without setting up any type of merchant account or buy credit cards. It can be stated that it is
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easy to use the software and transact through it. It also has the advantage where, it can do other
media as well which cannot be performed by the other. Hence the facilities can be, time lock and
multi signature. However, in contrast to this, as per the views of Ametrano, (2016) transactions
can also be broadcasted from one individual to the other very effectively. This facility can be
used when transactions are required to be presented in peer to peer network. The program
introduced by the currencies are effective enough that a web can easily understand or create
transactions automatically. It makes the cryptocurrency media do which cannot actually be
performed by any other medium. The other important aspect that is related to crypto currency is
that transaction cost is quite low in comparison to other media of transactions being present and
open for public. Hence, it this scenario, that it does not carry all the facilities that are actually
presented to the individual to other medias. It can be stated that crypto currency is a low trust
medium of exchange.
According to Scott, (2016) another aspect that is related to crypto currency is volatility.
The exchange rate of these currencies is more volatile in comparison to the other currencies that
are present in the market. However, various researchers have been able to state that an increase
in the adoption of use of Bitcoins or any other type of cryptocurrency, then it will help in
reducing the overall volatility that it may carry these days. However, the volatility has decreased
to a large extent in comparison to the one which used to be present in the year 2010. Apart from
this, there are various techniques that are adopted by the traders so as to ensure that impact of
volatility is not borne by them and risk attached to it can be mitigated. It is due to this reason an
extensive use of crypto currencies can be experienced leading to affect the overall amount being
generated though it.
2.7 Fiat currency vs. digital currency
According to Iwamura, Kitamura and Matsumoto (2014) fiat is the currency that has been
declared by the government as legal tender but ha snot been able to get back from any physical
commodity. The value of fiat money is derived with the help of relationship of supply and
demand rather than the overall value of material with money has actually being made. It is
commonly stated as a medium of exchange. Fiat money enjoys to have certain value as it has
been declared valuable by the government or the parties have got agreed to treat it as a same
value. A particular fiat money may `become ineffective if country faces the condition of
hyperinflation. If people lose faith in a particular currency then that particular money may not
13

hold any type of value for them and for the nationwide as well. Fiat money is considered as the
good currency which is able to hold the role of monetary unit which is actually required by the
country. It has the characteristics of providing a numerical account, store of value and facilitate
exchange. Since, the resource is not scarce as it is in the case of gold, central bank holds much
greater control over its overall supply. Central bank enjoys the right to manage its credit supply
in the form of liquidity, credit supply, velocity of money and interest rates. It also helps in
maintain employment rate and inflation rate in the country as well. Fiat currencies are far more
stable in nature in comparison to that of commodity backed currencies. The value of commodity
is based on its value and its price tend to fluctuate as that of the physical reserves. It also depends
on the overall economic conditions of the country that whether it will be able to stay stable for
longer period of time or not. revenues generated through the exports also have greater
dependence on it. Which can be applied in a traditional format while framing economic policies.
However, in comparison to this, asper the views of Abraham and et.al., (2016) digital currency is
a type of currency that is available in a digital or electronic format. It is not present in any
physical form and hence cannot be counted in the format of bank notes and coins. Although, it
exhibits all the properties as that of currencies but it has the special elements which makes it fir
for performing instant transactions irrespective of any type of geographical borders. Transfer of
ownership is also an effective aspects and characteristics that is present with the digital
currencies. Some of the examples of digital currencies can be virtual currencies, cryptocurrencies
and digital database money that is issued by central bank. Such as in the case of fiat money, it
can also be used as a mode of transaction and can be utilised in buying certain physical goods
and services as well. The money balance is generally recorded electronically with stored value
card or any other device. Another type of electronic money is network money which helps in
transacting with the help of internet. It only requires computer or a mobile phone with internet
connection.
According to Duffield and Diaz, (2014) there is a wide range of difference between fiat
money and digital money. Fiat money is a legal tender that is generally backed by central
government. It can take a physical form in the form of notes and can also be represented
electronically such as in the format of bank credits. The government have adequate amount of
authorities to control the overall demand and supply in the market by bringing adequate changes
in monetary policies of the country. However, in comparison to this, as per the views of
14

Harwick, (2016) cryptocurrency is not considered as a legal tender and is not generally backed
by the central government as well. It can only be represented digitally which can not have any
type of physical format. An algorithm can have control over its functions and transactions and
taxes can not be paid through it.
2.8 Recent researches
According to Iwamura, Kitamura and Matsumoto (2014) cryptographic currencies have
been able to gather wide range of popularity from public. The main role is played by the
algorithm that has been used to develop the data and present a software to people. It helps in
ensuring that all the transactions that have been initiated by the individuals are safe enough and
can not be initiated by any other party unless and until he /she have the cryptographic password.
The protocols of cryptography can also help in providing digital signatures, which can then be
used to reach out to the transactions. User and authentication data with more advanced
functionalities also help in ensuring that the data and transactions are safe enough for electronic
data or money transferring aspects. It is due to the reason that information technology has been
able to gain wide range of popularity among people. Public key is the common concept that is
present in the cryptographic format of currency. It helps in ensuring that a public key keeps the
data and money in wallet safe. However, it the individual disclose this key to anybody, then in
that case, all the transaction can get disclosed to the other individual.
2.9 The rapid spread and use of cryptocurrencies
According to Jiang and Liang, (2017) there are various types of cryptocurrencies, such as,
Ethereum, Ripple and Bitcoin which have become popular these days. A rapid increase in the
type of cryptocurrencies available in the market. When future money is assessed, there is
growing conscience in terms of cryptocurrencies that are made available to general public.
However, the market of cryptocurrency is more complex in comparison to that of other. The
evolution in the market of cryptocurrency have remarkable similarity to the evolution of
ecosystem and it has been expected that there will be more evolution to come in the field of
cryptocurrency in near future. The biggest challenge that exist with cryptocurrency is to prevent
any type of unauthorized copying. There are two mechanism that are used to prevent the same.
First is to publish every transaction in a public record and store various copies of the same,
online so as to ensure that the data is safe. It is the easy method as it can automatically be
compared and updated. The second mechanism that is used by them is related to protecting the
15

ledger prepared with cryptographic password. Every update which helps in collecting new
transactions can be added to the existing ledger. However, in comparison to this as per the views
of Sovbetov, (2018) various people tend to indulge in using cryptocurrency. Although it is
considered to be a high-risk investment, the return expected out of it is also higher in comparison
to that of other investments that are made available to general public. It has also helped in
increasing digital token based fundraising aspects with the help of internet connection. It has
been able to provide extensive opportunities to the investors in wider spectrum.
2.10 Cryptocurrencies Monetary Policy
According to Brown, (2016) there can be deeper influence of block chain currency that has
been issued by the central government on monetary policies of the country. The central bank
tries to keep the overall inflation percentage at a certain level that can lead to excess money
supply in the market. Further, interventions are also initiated so as to bring changes in statutory
reserve ratios. However, in comparison to this, as per the views of Durbin and Ronca, (2015)
central bank can help in forecasting the demand in a manner that adjustment of money supply
can be initiated accordingly. The statement of accurate in case of cryptocurrencies as well. Since,
cryptocurrencies are a decentralized channel, which circumvent the overall normal monetary
channel as well. Since, the existence of cryptocurrency is at global state, any type of monetary
policies to be implemented according to it in the country requires to be globally coordinated so
that its impact on money demand and supply can appropriately be managed. Another issue in
relation with implementation of cryptocurrencies in monetary policies of the country, is related
to amount of money supply. If the country does not own the ability to alter money supply, then in
that case, the problem of potential holding may crop up in the nation, that can ultimately result in
decreased supply of money. Hence, it can be stated that there is a greater amount of impact of
digital currencies or blockchain currency on monetary policies of the country.
2.11 Regulatory landscape of digital currencies in the US
According to LEE, GUO and Wang, (2018) US regulators are still in search of effective
method that can help them in initiating virtual currency regulation. Various laws and regulations
have several interesting developments in law, regulation and obligations in the country. Each
action taken by them tends to reflect challenges of virtual currencies that helps in mostly
underpinning the developments ultimately disrupting products and services in the industry.
Hence, regulators and law makers help in law enforcement in a manner that decision making
16

aspects can be initiated in the market. The authorities are also focusing on assessment of frauds
that can take place with respect to cryptocurrencies prevailing in the country. Since, these factors
can lead to bring destabilization in the market. However, in comparison to this, as per the views
of Jiang and Liang, (2017) the law of virtual currency in financial regulation have been able to
state that there is adequate mount of transparencies in the regulation which leads to bring
changes in financial exchange of individuals and the manner in which individuals and
corporations conduct their businesses. It helps in increasing reliability of the transactions. The
provisions being followed in traditional electronic payment networks may differ from what is
actually applied based on cryptocurrency.
2.12 Economic and Legal aspects of cryptocurrencies
According to Sovbetov, (2018) cryptocurrencies are classified as private money within the
community of currency. In majority of the countries, it is legal make payments in
cryptocurrencies. In this scenario, it is not prohibited to make payments as per the law. Although,
it is not recognized as a legal tender, there are various legal issues that attends to emerge which
can ultimately affect the users to a great extent. There are three methods based on which crime
on the cryptocurrency platform can be divided, administrative law, criminal law and civil law. It
holds the unique essence of transactions which is presented in the form of ledger. However, in
comparison to this, as per the views of Brown, (2016) there is appropriate distinction that has
been made with respect to centralized and decentralized cryptocurrencies which tends to attract
altogether different legal implications. From the social perspective, it is recognized as a money.
It is generally viewed as a store of value by the customers. In preserving payments made though
cryptocurrencies, circulation through central monetary authorities is also initiated so as to make
sure that short comings of traditional method of money can overcome.
2.13 Cryptocurrencies and their impact on Monetary policy in the United States
As per the view of LeBlanc, (2016) cryptocurrencies may lend credibility in
decentralized transactions. It has created challenge and opportunities for the central bank of the
nation. As this digital currency system create issue of falling seignorage revenues due to which
central bank gets fail to monitor its payment and transactions effectively (Top 10 Coins in 2020
Prediction (Opinion), 2018). This technology has shifted process of cash payment to credit
payment. By this bank deposits have been increased. Assets side of commercial banks now have
become stronger, this impacts on balance sheet of central bank to great extent as well. By this
17

way policy makers decreases interest rates so that lending can become cheaper. Pieters, (2017)
argued that monitory polices are being made for making control over currency but due to
cryptocurrencies banks are unable to control over their currency transactions. In such condition.
Excess inflow and outflow of currencies some times decrease value of money due to which
authorities have to increase their interest rates.
` According to Narayanan, Miller and Goldfeder, (2016) Blockchain supports policy
makers in clocking back to money supply targeting. Policy makers have all detail regarding
demand for money, this cryptocurrencies system aids central banks in gathering information
about all currency transactions so that they can make balance between demand and supply. In
order to make balance between both these two elements of money policy makers have to make
changes in monitory policies so that central bank can manage cash transactions well and can
enhance value of money as well.
2.14 Prediction on the effects Cryptocurrencies will present in future
As per the view of Park, Fuchsbauer and Gazi, (2015) decentralization of flow of
currency will be a powerful mean that can prevent data and can reduce theft. This can help in
safe transactions and minimizing time as well. LeBlanc, (2016) argued that future of
cryptocurrencies is challenging because central bank will loss their control over the monetary
transactions in such condition issue may get create because of imbalance between demand and
supply of money. Bitcoin will be the main technology by 2020 (What is The Future of
Cryptocurrency, 2017). In next 2 year development in lightning network will support in adding
immense value to the Bitcoin system. In the future many online retailers will take support of this
technology for their payments.
According to Delmolino and Shi, (2016) Technological revolution has changed scenario
of market but in the absence of correct platform 95% applications have failed to meet its
objectives. Thus, it would be better for the authorities that to build platform that can contribute in
success of these applications and can support in raising value of money. Crypto trends will allow
in making changes in value of money in the US.
CHAPTER 3: RESEARCH METHODOLOGY
5000
Research methodology is the theoretical analysis tool that is generally used in different
types of researches. Each method has some principles and as per suitability of the study these
18

methods are being applied by scholar (Gummesson, 2014). It is the way that assist in finding
accurate results and addressing research problems. The main agenda of applying these
techniques is to search the questions in systematic manner so that no confusion can get created.
This develops understanding of scholar and support in funding accurate results. There are various
methods such as philosophy, data collection, design, approach, data analysis etc.
3.1 Research design
It is outline of entire study that helps researcher in involving various elements in the
research soi that investigation can be held in systematic manner. It assists scholar in carrying out
the research in effective manner (Guest and et.al, 2017). In other words, it is blue print of entire
research that supports researcher in gathering data and finding accurate answers. Design is set of
methods that are used to analysis variables and finding answers. There are several kinds of
research designs that are applied in different type of studies. These are such as descriptive,
exploratory, semi experimental etc.
Descriptive design is theoretical aspect of conducting the research. It is generally applied
in the investigation where scholar has to involve theories and entire study is highly depended
upon these theories and models (Gast and Ledford, 2014). Good description of the topic allows
investigator in addressing research questions. Descriptive research design allows researcher in
providing clear picture of situation and identifying the real scenario. It involves existing
practices and judgement with the help of theories. The main agenda of applying this design is to
clarify picture of situation and answer the questions in appropriate manner.
Explanatory research design is another kind of method that concentrate more on why
questions. If study talks about impact of cryptocurrencies on monitory policies then explanatory
design will focus on why this happen (King and Mackey, 2016). It examines trends in the
country and answer these why questions. On other hand confirmatory design frame hypotheses
and test these hypotheses in order to get actual outcome. Hypotheses are derived from earlier
studies and by taking into consideration researcher test these hypotheses. One of the main agenda
of applying confirmatory design is that its results are more meaningful as compare to other
studies (Anney, 2014). This method is more useful in reducing probability of producing false
reports. Exploratory is most important and common research design that is applied in both
qualitative and quantitative type of projects. In this method scholar examine set data and try to
find out relationship between two variables. This is most effective design that helps researcher in
19

making new discoveries. Researchers always aims to minimize probability of rejecting thesis
thus, explore each element that can help in answering research questions. Exploratory design are
used in type of studies where scholar try to find out significant relationship between two or more
variables. This helps the researcher in finding impact of one variable on other (Totawar and
Prasad, 2016).
Experimental research design is the tool in which scholar activity tries to make
experiments in order to change situations. This helps in getting accurate results and minimizing
gap. In this type of method scholar assign participants those who have great knowledge about the
situation. They can state in-depth understanding about topic and can support in finding results.
Therefore, researcher makes experiments even before gathering data on topic (Khanna and et.al,
2016). Experimental design pays attention on identifying the best way through which variables
can be operated and measured effectively. In this design individual look at the purpose of
research and practical limitation of study, on the bases of these aspects experiments are being
made so that valid results can be generated.
In the present dissertation on impact of cryptocurrencies on monetary policy of United
State researcher has taken assistance of descriptive research design. This is more suitable
approach because this tool allows researcher in determining facts and gathering information
about topic easily (Sessler and Imrey, 2015). In this tool scholar has to shed light on current
issues and have to gather information so that current situations can be described in effective
manner. By using this method researcher becomes able to describe characteristics of
cryptocurrencies and its impact on monetary polices easily. This has supported researcher in
describing, explaining and validating the study so that actual results can come out. It is closely
associated with observational researches in which scholar has to observe facts about the research
questions. This helps researcher in answering these unanswered questions impressively (Bach
and Dohy, 2015).
One of the main benefit of applying descriptive research design in the present study is to
effectively analysis non quantified topics and problems. Furthermore, this method has supported
scholar in observing phenomenon and finding more detail about cryptocurrencies and monitory
polices in US. It is less time consuming method and are applied in both qualitative and
quantitative type of researches (Baedeker and et.al, 2014). Thus, scholar has taken support of this
20

method so that researcher can describe information on cryptocurrencies effectively and can
answer these research questions.
3.2 Research Instruments
Research instruments are the tools and techniques that are used by scholar for finding
answers. These instruments allow scholar in gathering information about topic and finding
accurate answers. Research philosophy is considered as one of the important element of
instrument that describe belief of researcher on the way of conducting entire research. It helps
investigator in analysing various sources through which knowledge regarding topic can be
developed (Cunningham and et.al, 2015). Selection of appropriate philosophy is very important
because it impacts on entire end results. There are three main types of philosophies positivism,
interpretivism and realism., Positivism is type of method which is generally applied in
quantitative type of projects. In this method scholar concentrates on objections and framed
hypotheses by considering these objectives. In this type of method researcher makes prediction
by looking at previous studies. As entire study is based on earlier researches thus, role of
investigator gets decreased but it is helpful in involving right elements in the research so that best
solutions can be obtained (Vasilevsky and et.al, 2015).
Interpretivism is another kind of philosophy that conducts entire study in subjective
manner. Researcher takes support of various theories in order to find out answers of research
questions. In this type of method scholar involves human participants those who can give good
information about topic. These human participants interpret situation and find realistic answers
of research questions. It is generally applies in qualitative type of dissertations. Realism is type
of philosophy that conducts research on the bases of scientific enquiry (Gummesson, 2014). In
the present research on impact of cryptocurrencies on monetary policies in US scholar has taken
support of interpretivism research philosophy. It has supported scholar in meeting with objective
and accomplishing research on cryptocurrencies in effective manner.
Research approach is another instrument that assist researcher in finding approach of
entire dissertation. There are two main type of approaches: inductive and deductive. Both these
methods have unique features that help researcher in answering unanswered questions in
appropriate manner (Guest and et.al, 2017). Inductive is type of method in which scholar has to
involve human participants those who can give answers of research questions. These participants
help scholar in developing understanding about topic and improving knowledge regarding
21

current situation of the subject. It is also known as inductive reasoning in which scholar observe
the situation and involve theories in order to reach to end results. In this method scholar does not
formulate hypotheses and develop understanding by applying various theories. Inductive
approach is highly depended upon previous literatures on the same topic. Scholar take support of
these studies in order to find out answers of research questions. On other hand deductive
approaches are such methods that formulate hypotheses and test these hypotheses in order to find
out answers. This is generally applied in quantitative type of researches (Gast and Ledford,
2014). In the present study on impact of cryptocurrencies of monetary polices scholar has
applied inductive research approach. By applying theories and model researcher has become able
to answer these questions easily.
Research instruments support researcher in understanding situation and resolving issues
easily. By this way researcher can answer to all these questions in effective manner and can
minimize confusion (Anney, 2014). Case study, interview, survey method, questionnaire etc. are
some research instruments those which are applied in different type of projects. Scholar has to
look upon the best suitable method so that accurate results can be find out. Behavioural science
states that survey method is the finest method to carry out study on the particular topic. On other
hand interview are considered another best approach that helps researcher in exploring
qualitative view point of involved participation. Apart from this case study is another type of
instrument that formulate a study and gather in-depth detail about this study so that research
questions can be answered in effective manner. Case study method emphasis more on systematic
way of gathering information and analysing data in appropriate manner (Khanna and et.al, 2016).
Survey is the most commonly used method in which researcher carries out survey for
finding answers of research questions and developing understanding about the topic. In order to
conduct survey in appropriate manner scholar takes support of questionnaire technique. This
questionnaire is helpful in gathering information about topic and finding view point of human
participants (Baedeker and et.al, 2014). Survey instrument is further classified in three parts: Part
A describes strategies and planning. In this method scholar carrying out survey by making
effective strategies and planning. On other hand part B describes view point of participants about
topic and Part C look upon practices that are applied in real environment. Questionnaire is most
common instruments that is applied in primary researches. In this scholar prepare open and close
ended questions and participants have to give answers of these questions. On the bases of their
22

answers researcher get to know about real situation and develop understanding about topic
(Vasilevsky and et.al, 2015). In the questionnaire instrument, persons are given various options
and they have to select one option in order to answer questions and have to give justification for
the same. In the present study on cryptocurrencies and its impact on monetary polices researcher
has taken support of questionnaire instrument. This has helped the scholar in involving such
human participants those who have great knowledge about topic and they have given in-depth
detail about the cryptocurrencies to the scholar. This has supported in answering research
questions in effective manner (Cunningham and et.al, 2015).
3.3 Data Collection
Data collection is most important part of dissertation that enhance understanding of
researcher and supports in conducting the study in effective manner. Collection of data assist in
finding answers of unanswered questions. There are various sources of data collection that helps
researcher in developing in-depth understanding about topic. Primary and secondary are two
main sources that supports researcher in meeting with this objective (Baedeker and et.al, 2014).
Primary data collection sources are such tools in which scholar has to gather information by own.
In this researcher concentrate on current details and try to find out facts about real situation.
These details have not been published in any book or journals earlier to this investigation.
Researcher takes sufficient time and utilize resources so that fresh details can be gathered by the
person and individual can develop understanding about topic. There are various sources of
gathering primary information such as interview, survey, questionnaire etc. All these techniques
are effective in order to conduct investigation in appropriate manner (Totawar and Prasad, 2016).
On of the main advantage of applying primary data collection sources is that individual becomes
able to involve original data about topic, these details are more accurate and this information
clearly define real facts about subject matter. It gives realistic view to researcher so that no
complication can get arise and scholar can become able to answers research questions in
appropriate manner. In addition, primary data are more reliable and supports researcher in giving
answers as per the current situation (King and Mackey, 2016). But these are time consuming
methods because scholar has to spend such huge time in order to gather information about the
topic. Some times participants may not give actual answers in such condition individual may get
failed to develop understanding about topic. Sometimes respondents takes time to answer
23

questions which consumes too much time of researcher and create complexity in order to
complete research on time (Gummesson, 2014).
On other hand secondary data collection is another type of method in which researcher
take support of already available detail. Individual enhance understanding about subject by
reading books, journals, internet articles that have been prepared by other authors on the same
topic. This saves time of researcher and individual improves knowledge that supports in giving
answers of each question effectively (Gast and Ledford, 2014). One of the main advantage of
secondary sources is that these methods are cost and time effectively. All these books and
journals are easily available, researcher can use these articles in order to develop understanding
about topic. By this way scholar can gather information in less time and on the bases of gathered
detail individual can answer these unanswered questions. This saves time, money of researcher
and helps in finding accurate answers of research questions (Sessler and Imrey, 2015).
In primary data collection sources researcher take support of questionnaire method, in
this technique researcher prepare questionnaire and ask questions with respondents. This method
supports in gathering real facts about topic. As cryptyocurency is the complicated topic thus, in
order to gather detail about cryptocurrency and its impact on monetary policy investigator has
applied primary data collection source. In this researcher has chosen questionnaire technique for
developing understanding about topic. It is the type of method in which scholar prepare series of
questions, all these questions are constructed in proper manner and has supported researcher in
gathering in-depth detail about research area (Baedeker and et.al, 2014). Cryptocurrencies is the
vast topic and there are various techniques through which digital currency transmission held.
This method has supported investigator in identifying how cryptocurrencies affect monetary
policy and how government react on it in order to make balance between demand and supply of
money.
It is very important for researcher that to prepare accurate questions otherwise entire
investigation will get failed and researcher will not being able to answer these research questions
(Vasilevsky and et.al, 2015). Researcher has checked questionnaire and have ensured that these
questions are able to answer research questions in appropriate manner. Questionnaire method in
helpful for the researcher because by this way scholar has become able to analysed data and
finding out real impact of cryptocurrencies on monetary policy. If questionnaire is not good then
end results will be valueless. Questionnaire method has supported scholar in completing study
24

within specified budget. Cost of applying questionnaire method in dissertation is very low (King
and Mackey, 2016). Though researcher has option to send questionnaire to respondents on mail
because in this scholar needs not to ask questions personally. Thus, it is less costly and individual
has become able to gather in-depth detail about cryptocurrencies and its impact on monetary
policies. This is most suitable method because there are limited studies have been conducted on
cryptocurrencies thus, researcher was unable to enhance understanding about various concepts
such as virtual currency, monetary polices, inter relationship between cryptocurrencies and
monetary policy. The information that are present on this topic are much more complex and
these are not easy to understand as well (Sessler and Imrey, 2015). Thus, through questionnaire
method scholar has become able to gather wide range of details rapidly. This has saved time and
money of researcher to great extent. All these fresh details have supported researcher in finding
accurate answers on impact of cryptocurrencies on monetary policies.
3.4 Research Ethics
Ethical consideration are most essential part of dissertation. Ethics are such standards that
are necessary for researcher to follow. This helps investigator in selecting right way of
conducting research and abolishing errors. These ethical aspects define difference between right
and wrong behaviour. Ethical behaviour supports in building healthy environment and trust as
well. By this way all respondents and researcher give respect to each other which supports in
minimizing confusion and abolishing wrong activities (Baedeker and et.al, 2014). As ethical
aspects are essential part of research thus, there are many professional those who have prepared
codes and guidelines that are necessary to be followed by scholar while researching on particular
topic. In order to conduct systematic research on impact of cryptocurrencies on monetary polices
researcher has taken care of ethical aspects and have not breached any regulation regarding the
same. Investigator has given respect to all involved participants, scholar has not involved any
activity that can hurt their dignity. This has supported in managing work properly and
minimizing complex situation in investigation (Cunningham and et.al, 2015). Researcher has
sent consent form to all participants before asking questions with them. In this consent form all
detail regarding aim of the study and other terms and conditions are maintained. All respondents
have read these terms and conditions and have signed this consent form. They have sent back
this form to researcher, this form shows that all people are ready to be part of this study and they
have not being forced by investigator to answer these questions (Vasilevsky and et.al, 2015).
25

Scholar has not forced any person to share their views that is why individual has become able to
gain their attention.
Researcher has maintained adequate level of privacy and confidentiality in research.
Scholar has not shared any detail regarding views of participants and other information with third
person. Investigator has saved all details in pass word protected computer and individual has not
shared password of the computer with any third person (Bach and Dohy, 2015). This has helped
in maintaining confidentiality in research. Investigator has treated all persons' equality,
individual has not discriminated any person on the bases of age, gender, income, race etc. All
participants were free to share their views and researcher has given them option to skip the
questions if they are uncomfortable to answer any question (Gummesson, 2014).
3.5 Data Analysis
3.6 Research Reliability and Validity
CHAPTER 4: FINDINGS AND DISCUSSIONS
6000
Key Findings/Results
How do cryptocurrencies impact on the Monetary policy in the US
Discussion
CHAPTER 5: CONCLUSION AND RECOMMENDATION
1500
Summary of Major Findings
Recommendations
Limitations of the Study
Suggestions for Future Research
26

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APPENDIX
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