Cryptocurrency: Threat or Opportunity
Though a weak currency is a sign of a weak economy and a weak economy leads to a weak nation, here we gave an attempt to study about the cryptocurrency. Cryptocurrency is also known as the digital currency of the 21st Century which moves in the form of cr
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Abstract Though a weak currency is a sign of a weak economy and a weak economy leads to a weak nation, here we gave an attempt to study about the cryptocurrency. Cryptocurrency is also known as the digital currency of the 21st Century which moves in the form of cryptographic codes in between people or institutions those who are connected to peer to peer networks (P2P). Blockchain Technology plays a major role in the flow of cryptographic codes among various nodes in the P2P networks to convert into Cryptocurrency in the decentralized ledger environment. This paper investigates the working of cryptocurrency and its impact on economies, especially to list the threats and opportunities to the Indian Economy. Also gave an attempt to differentiate the cryptocurrency and fiat or real currencies on various aspects in the world economy. We used descriptive cum exploratory research methodology to get the desired results in the present research work. Keywords Blockchain technology Opportunities Threats
Cryptocurrency Fiat currency Economy
V. Chakravaram (&) S. Ratnakaram Jindal Global Business School, OP Jindal Global University, Sonepat, India e-mail: [email protected] S. Ratnakaram e-mail: [email protected] E. Agasha Mekerere University Business School, Kampala, Uganda e-mail: [email protected] N. S. Vihari BITS Pilani, Dubai Campus, Dubai, UAE e-mail: [email protected] © The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2021 A. Kumar and S. Mozar (eds.), ICCCE 2020, Lecture Notes in Electrical Engineering 698, https://doi.org/10.1007/978-981-15-7961-5_71
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1 What Is Economy An area where Purchase, Production, Sales, Trade, Distribution and Consumption of goods and services among various economic agents taken place is known as Economy. These economic agents are main stakeholders of the economy generally known as individuals, business institutions, organizations and Government [1]. Generally, these transactions occur with a price tag mutually agreed and commonly expressed by two parties at a certain currency.
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What Is the Relationship Between Economy and Currency?
Hence, based on the above discussion currency or monetary transactions occupy very limited space in the economy. Currency is known as a medium of exchange in the economy specially to circulate in the form of banknotes, coins, bill of exchanges, drafts, etc., Earlier we have barter system before the introduction of currency. But this barter economy presents many difficulties [1]. We will have to search for the right party to exchange our component with another party for our required component. When we identified the party, he or she may not have interested in exchange product or component. This is the biggest disadvantage of this barter system. Also, there are no standard measurements in the procedure. We cannot subdivide the exchanging commodities also very difficult to store. Hence, all these difficulties are overcome with th
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