Cryptocurrency and its role

1. CRYPTOCURRENCY
Nidhi Khristy
Bidisha Biswas
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2. CONTENT
1. WHAT IS CRYPTOCURRENCY?
2. HOW DOES CRYTOCURRENCY WORKS?
3. TYPES OF CRYPTOCURRENCY
4. WHAT IS BITCOIN?
5. HISTORY OF BITCOIN
6. BLOCKCHAIN SYSTEM
7. ROLES OF CRYPTOCURRENCY
8. CRYPTOCURRENCY INVESTMENT
9. METCALF’S LAW
10.HOW DOES CRYPTOCURRENCY EFFECT THE JOB MARKET?
11.CONCLUSION
12.REFERENCE
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3. What is cryptocurrency?
It is a medium of exchange, which is digital with the encryption
techniques which helps to create the financial and monetary
funds, These cryptocurrency also help us to analyse and adjust
the value of funds being transferred.
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4. How does cryptocurrency works?
• Cryptocurrency transactions and balances are recorded on a
public digital ledger called a blockchain.
• And it is a decentralised Peer to Peer network system.
• Cryptocurrencies can be accessed through software called
wallets (transactions are broadcast to the network to be
added to the blockchain via transactions created in wallets).
This can be equated to online banking (where you have
account numbers and passwords and move funds between
accounts). 4

5. TYPES OF CRYPTOCURRENCY
• Bitcoins(BTC): Bitcoins is a type of digital currency in which a
record of transaction is maintained and a new unit of currency
are generated by the computational solution of mathematical
problems which operated independently.
• Litecoins(LTH): Litecoins were launched in 2011, was the
initial cryptocurrency following the bitcoins and is often referred
to as the “silver of the bitcoins gold”. As on 9th February 2019 ,
litecoins had a market cap of $2.63 billion as per token value
$43.41.
• Ethereum(ETH): Ethereum was launched in 2015 . It is a
decentralized software platform that enables the smart contracts
and the disrupted applications (Dapps) to be built and run
without any downtime, fraud, control and interference of the
third parties.
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6. • Zcash(ZEC): It was launched in the later part of 2016 and
it is a open sources cryptocurrency rather most promising,
“if the bitcoin is http of money then Zcash is https of
money” an used analog to define it.
• Ripple(XRP): It was launched in the year 2012. It is the
Real time global settlement network that offers instant,
certain and low cost international payment.
• Bitcoin Cash(BCH): It holds a very important place in the
history of altcoins because it is one of the most earliest and
successful hard forks on the original bitcoins
TYPES OF CRYPTOCURRENCY
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8. What is Bitcoin?
• A currency that is issued, used and
controlled by its users
• Bitcoin is money or currency not
created or managed by a country or
corporation
• It is a virtual currency that is created
from computer codes
• Bitcoin is an international payment
network
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9. History of Bitcoin
• The first decentralized cryptocurrency,
bitcoin, was created in 2009 by
pseudonymous developer Satoshi Nakamoto.
It used SHA-256, a cryptographic hash
function, as its proof-of-work scheme.
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11. A blockchain is a chain of block that contains the information regarding the
transaction done by the miners. It is a peer to peer(P2P) and a decentralized network.
A blockchain is a distributed ledger that contain the transaction details which cannot
be changed.
Data: It contains the information regarding the sender receiver and the amount
Hash: It identifies the block and all of its content and it is always unique.
Hash of the previous block: After the creation of the block if there is any need to
change the information then you have to change the hash of the previous one and thus
after correcting it will create a new hash for the new block
BLOCKCHAIN SYSTEM
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13. ROLES OF CRYPTOCURRENCY
ELIMINATING THE MIDDLEMEN
• Decentralise function
• Does not pass though multiple hand
• Quick transaction
REMOVING BARRIERS TO ENTRY
• Enter freely through traditional routes
• Attaining super normal profit in the
short run and eventually attaining
normal profit in long run
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14. Medium of Exchange
• Use cryptography to secure the
transaction
• Not regulated and controlled by
government
More International Transaction
• Engage with the global internet
economy
Prevening money laundering
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15. • In 2017, the popularity and the use of the cryptocurrency has increased
dramatically.
• Cryptocurrency has benefits of frictionless transaction and inflation control.
• Investors are adding these currencies as assets to their diversified portfolio
• Cryptocurrency scene in the spring of 2017 with an early price around $0.007
USD, and it reached a peak of $ 37.62 on January 2018.
• In about 9 months, a $100 investment increased to $537,428 USD.
• Billions of dollars have been poured into more than 1000 new digital coins.
CRYPTOCURRENCY INVESTMENTS
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16. METCALF’S LAW
Metcalf’s law states that the value of the network is directly proportional to the square
of the number of the active users, so in case of the users development there is a so called
square growth in the value of the network.
• The cost of the network is linear and the no. And the no. of notes that you buy.
• The value of the network is the no. of connection that you can make with the
network.
value = N times N-1 , Thus the value =N2
• The point of intersection of the two curve states that the cost of the network is equal
to the value. This law states that the value or the price of the coins will reach at its
peak but pretty soon it will ran out of people(network) thereby the derivatives falls.
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17. HOW DOES CRYPTOCURRENCY EFFECT JOB
MARKET?
• The growth of the cryptocurrency in the massive scale lead to a sudden increase in the
demand for employment in the job market.
• Cryptocurrency started in 2009 but it was fully implemented in 2016. Since 2016 till
2019, the job posting has increased by 4086%
• The median salaries for blockchain related job openings in $84,884 per years .
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19. CONCLUSION
SHORT TERM EFFECT(3-5 YEARS)
• Increasing efficiency in the financial industry
• Emerging markets
LONG TERM EFFECT(5-10 YEARS)
• Financial market disruption
• IOT(Internet of things) transaction, which require both efficient simplicity and
robust security.
• Expanding industries across nearly any industry that involves large-scale record-
keeping.
FAR FUTURE(10+YEARS)
• Global and democratized cryptocurrencies have the potential to replace
government-backed fiat currencies as the primary means of conducting financial
transaction.
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20. REFERENCE
• Investopedia, Bajpai.P, May 28,2019,Types of cryptocurrency
(https://www.investopedia.com/tech/most-important-cryptocurrencies-other-
than-bitcoin/)
• Blockchain system
(https://www.google.com/search?q=how+does+blockchain+operate&tbm=is
ch&source=iu&ictx=1&fir=ddjnJ-TBihv9JM%253A%252CgwEw-
IuFJr0fwM%252C_&vet=1&usg=AI4_-
kRHGI0v8trNjLUP1ez8KQQTkD11Tg&sa=X&ved=2ahUKEwjgi83Fp-
7iAhXBUlAKHalkBxYQ9QEwAHoECAIQAw#imgrc=ddjnJ-TBihv9JM:)
• Technobuffalo, Matthew.K, May 20th , 2018, Roles of cryptocurrency,
• Vacancysoft, Pawlowski.Y, (https://vacancysoft.com/how-cryptocurrency-
affect-job-market/)
• ((https://www.youtube.com/watch?v=f6CJA421aUo
• Conclusion :The Future,
(https://sociallimps.dbogatov.org/topics/conclusions)
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