Is Cryptocurrency a Key in the Digital Supply Chain?

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By Shafiya Ghani

“It’s a fraud” and “worse than tulip bulbs” – Jamie Dimon, CEO of JP Morgan

Introduction

Cryptocurrency is an electronic currency created using technology that hides the user’s identity and controls the creation and protection of transactions. Cryptocurrency is abbreviated as “encryption”, and encryption is a computer technology used to hide security, hide information, identification, etc. Currency means “money in use”. Cryptocurrency is faster, cheaper, and more reliable digital money than what ordinary governments spend. Instead of believing that the government makes money and the banks save, send and receive money, consumers trade directly with each other and save money. Transactions are usually very cheap and fast, because people can send money directly without intermediaries. To prevent fraud and hacking, all cryptocurrency users can simultaneously record and view transactions between themselves and others.

Digital transaction records are called “books” and are available to everyone. This open book makes transactions efficient, consistent, secure, and transparent. With public records, you do not need to trust your bank to save money on cryptocurrency. You do not need to trust the people who work with you to really pay you. Instead, you can see how thousands of people send, receive, verify, and record money. This system does not require trust. This unique positive quality is called “trust”. The first cryptocurrency is bitcoins.

 What is bitcoins? 

Bitcoin is the first digital money in 2009. It was created by an unknown person or group named Satoshi Nakamoto. Bitcoin is unique in that it does not depend on state / bank money. In addition, the transaction occurs directly between the aliases (the real name is unknown), so there are no banks or brokers. All transactions are stored by many people around the world and recorded in the form of digital records called “blockchains”. Blockchain data is publicly available and stored on many computers. Transactions and bank details are very secure and Unmanageable because too many copies are managed at the same time.

 Regulation of Cryptocurrency around the World 

This report explores the legal and political situation of cryptocurrency around the world. The report includes 130 countries and several regional organizations that have issued laws or guidelines on this issue. Over the past four years, cryptocurrency has been everywhere, prompting more and more national and local authorities to regulate. The growing growth of cryptocurrencies allows the identification of new models.

 Regulation of Cryptocurrency in Selected Jurisdictions

This report summarizes cryptocurrency guidelines and regulatory systems in 14 countries.

Key issues in this report include issues related to the legitimacy of the cryptocurrency market. Cryptocurrency tax processing; the fight against money laundering, the adoption of laws on organized crime and the financing of terrorism.

 Regulatory Approaches to Crypto-assets

The report covers 46 jurisdictions, including the European Union, and focuses mainly on regulatory access to cryptocurrencies created using blockchains or ledgers distributed in the context of financial markets and investor protection laws. It also contains up-to-date information on how to apply tax laws and AML / CFT laws to your country’s cryptocurrency. Other countries not covered in this report may have taken action in one or both areas, but were not considered because there are no existing policies or there are no new or pending laws governing financial regulation and monitoring of cryptocurrency activities.

 Is Cryptocurrency a good investment? 

PRO: Investments in digital currencies have advanced significantly. In other words, the cryptocurrency market is still young, and it is recommended that the most optimistic investors plan future prices for the purchase of one of the most important cryptocurrencies (even in mid-2017). This is a good bet in the long run.

 Top 5 cryptocurrencies to invest in 2020

1. Bitcoin

2. Ethereum

3. NEO 

4. EOS

5. Ripple

How is cryptocurrency sent and received?

An encryption key can be sent directly between the two countries using a private key and a public key. This transfer can be done with minimal processing costs, so users can avoid the high fees charged by traditional financial institutions.

 Cryptocurrency versus US dollars 

 The fact that cryptocurrency is digital is not an important difference between cryptocurrency and traditional currencies such as the US dollar. 

 The government does not support cryptocurrency

Cryptocurrency, like deposits in the United States, is not guaranteed by the government. This means that cryptocurrency stored on the Internet does not provide the same protection as money in a bank account. If the cryptocurrency is stored in a digital wallet provided by the company, and the company does not function and is not hacked, the government may not intervene and return the money, as in the case of money stored in banks or credit unions. 

 The value of cryptocurrency continues to change

Cryptocurrency prices can change hourly. Today, investments that cost thousands of dollars are only hundreds of dollars. There is no guarantee that it will increase again if the value decreases.

This means that there are no real coins or real accounts. You can send digital currencies online without interruption to other people, such as banks. Bitcoin and Ether are a well-known cryptocurrency, but a new cryptocurrency is still being created. People can use cryptocurrency to avoid fast payments and transaction fees. Some may receive cryptocurrency as an investment in the hope of an increase in value. You can buy cryptocurrency with a credit card or, in some cases, through a process called mining. Cryptocurrency is stored in a network digital wallet on a computer or other equipment. Before buying a password, you need to know that it does not provide the same protection as when using.

Cryptocurrency fraud as more and more people become interested in cryptocurrency, more and more scammers are finding a way to use it. For example, scammers can offer investment and business opportunities, double their investment, or give them financial freedom. Dollars or cryptocurrencies make claims against obscure companies.

 Conclusion 

Cryptocurrencies such as Bitcoin have yet to overcome many important obstacles before completely replacing the existing currency system. The most direct is the simple resistance of existing financial institutions, which have great power and incentives to prevent the spread of cryptocurrency. Other large companies are not considering it now, even if they are vulnerable to the idea of ​​a cryptocurrency that is stable enough to maintain its current assets for a long time. In addition to struggling with the existing economic system, cryptocurrency also faces some internal challenges. For example, efforts to transform the entire global financial system into a BitCoin model can significantly expand the blockchain, making the decentralized book model impractical. It is still unclear whether blockchain technology can be successfully applied in applications requiring high speed and very high speed.

Cryptocurrency is the most popular topic in the global financial system. The cryptocurrency exchange rate fluctuates greatly. Consequently, the risk of this cryptocurrency transaction is high. Their growth has attracted the attention of many speculators. It is convenient to carry. It is used only on a larger scale after the trust needed for cryptocurrency. If the cryptocurrency does not gain this trust, the explosion can be slow. They are still in their infancy and are not sure when to trade in markets around the world. This has attracted attention, which requires a lot of other cryptocurrencies. Some countries have begun issuing national cryptocurrencies (Hofman, 2014). Bitcoin will soon have the opportunity to develop cryptocurrency. Despite the flaws, Bitcoin is still considered a digital currency tour. Cryptocurrency is a system that allows you to make secure online payments and is called a virtual “token” and is represented by internal data records of the system. “Crypto” refers to various encryption algorithms and encryption technologies that protect these records, such as: B. Encryption using an elliptic curve, public-private key pairs, and hash functions.

 References

https://blockgeeks.com/guides/what-is-cryptocurrency/

https://www.consumer.ftc.gov/articles/what-know-about-cryptocurrency

https://www.investopedia.com/terms/c/cryptocurrency.asp

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