Future of Finance: Cryptocurrency as an Integral Component Explored

This essay explores the increasing importance of cryptocurrency as a digital asset within the global financial landscape. Defining cryptocurrency as a decentralized virtual currency using blockchain technology, it highlights the growing popularity of cryptocurrencies for fast, secure, and low-cost international payments. Bitcoin is identified as the most prevalent cryptocurrency, with competitors like Litecoin, Ethereum, and Ripple. The essay discusses how cryptocurrency simplifies transactions, reduces credit risk, and attracts investors. While noting the limitations for smaller transactions and its use for wealth accumulation, the essay mentions countries like Russia and Japan recognizing cryptocurrency as a mode of payment and its application in IPOs, concluding that cryptocurrency will become an integral part of the financial landscape in the future.

CRYPTOCURRENCY WILL BECOME AS AN INTEGRAL PART OF THE
FINANCIAL LANDSCAPE
A crypto currency has been defined as a digital asset which has been designed to perform as way
of currency exchange. Crypto currency is that form of virtual currency which utilizes the control
in decentralized form so as to confront the centralized electronic system of money exchange or
the system of having the central banking. The decentralized control of each crypto currency uses
a block chain technology in the manner that the transaction saves in the database on continuous
basis. (Cermeño, 2016).
Nowadays crypto currencies are gaining the popularity for not only in the domestic industry but
also for making the payments internationally across the globe. Fast, secure, low cost and
authenticated international payment system motivates corporate houses as well as individuals
across the globe to keep in view the uses and benefits of the crypto currency settlement system.
In the current scenario, the most famous and prevalent crypto currency is bitcoin. Its main
competitors are lit coin, ethereal and ripple (Salviotti, 2018).
By having the bit coin as the currency, the settlement system has almost changed. It is because
now the individuals will not be required to carry the multiple currency accounts rather they will
make the payments across the globe just like the central banking system and which results in the
easy settlement of the transactions without any basic hurdles. There will be the reduction in risk
of having the credit based business as all the transactions will be settled within that time only and
there will neither be delay in any means.
In the current scenario, bit coin has gained the so much popularity that everyone wants to deal
into this currency as it has removed the hurdles in settling the transaction and because of which
the bit coin is at the peak in the world of finance and banking and accordingly the investors have
started purchasing these bit coins from the financial market in order to have the financial gains in
the future (Nguyen, 2016).
The settlement though very easy but it can only be done in the larger transactions and not in the
smaller transactions. It is because of the fact that the bit coins are being exchanged in lieu of the

metals which are precious in nature or the diamonds like material. Therefore, there is need of
having the centralize system so as to get the bit coin also included in having the smaller
transactions entered. It is because of this disadvantage of the settlement, these crypto currency are
being used as the technique only in order to have the manifold increase in wealth of the investor.
Some countries have declared the crypto currency as the one of the mode of payment which
included the Russia and Japan and etc. In some countries these crypto currency has been placed in
lieu of stock certificate and some corporate are using as a tool in the process of the making the
IPO’s (initial public offering).
Thus, in this manner, it can be said that the crypto currency will become the part of the financial
landscape in future (Pilkington, 2018) .
REFERENCES
Cermeño, J.S., (2016), “Blockchain in financial services: Regulatory landscape and future
challenges for its commercial application”. BBVA Research Series, 21 (1), 32-39.
Nguyen, Q.K., (2016), “Blockchain-A Financial Technology for Future Sustainable
Development” In Green Technology and Sustainable Development (GTSD), International
Conference on . 51-54
Pilkington, M., (2018), “The Emerging ICO Landscape-Some Financial and Regulatory
Standpoints”, Accounting review, 224(5), 29-45

Salviotti, G., (2018), “A structured framework to assess the business application landscape of
blockchain technologies”. In Proceedings of the 51st Hawaii International Conference on System
Sciences.