CURRENT TRENDS AND FUTURE SCOPE OF

CRYPTOCURRENCY
1.1 INTRODUCTION:

A cryptocurrency is a virtual or digital currency that can be used to buy goods and services;
which implies there’s no physical coin or bill used and all the transactions take place online.
The term “cryptocurrency” in itself is derived from the encryption techniques used to secure
the network.It used an online ledger with strong cryptography to ensure that online
transactions are completely secure. Here, we have included all the details pertaining to
cryptocurrency such as types, how it works, uses, how to buy and store it. It is a purely virtual
line of currency that runs on the system of cryptography. It functions as a decentralised
medium of exchange where cryptography is used to verify and facilitate each transaction.
Cryptography also underlines the creation of units of different cryptocurrencies. This mode of
exchange primarily runs on the blockchain technology – that which lends cryptocurrencies
the decentralised status. It is a shared public ledger that contains all the transactions that have
ever taken place within a network. Therefore, everyone on the network can see each
transaction that takes place and also view others balances.

The Blockchain technology addresses one of the primary concerns with digital payment
platforms, i.e. double-spending while ensuring there is no monopoly of authority. That is
because, in blockchain technology, parties to a transaction themselves verify and facilitate
every such activity.The concept of digital currency gained considerable traction in the 90s
tech boom. Multiple organisations and programmers ventured to create a parallel line of
currency that would be out of any central authority’s reach. However, ironically, the
companies that tried to create this digital currency themselves assumed the authority of
verifying and facilitating transactions. It not only defeated the purpose but founded the
venture as well. Moreover, the digital currencies back then were riddled with frauds and other
financial challenges. For a long time since then, this idea of digital currency was considered a
lost cause. This idea was falsified when Satoshi Nakamoto – a programmer or a group of
programmers – introduced and explained what is Bitcoin in 2009, the first-ever
cryptocurrency. It is a peer-to-peer electronic cash system. In that, it is much similar to
peer-to-peer file transactions, where there is no involvement of any central authority or
regulator.

Ergo, cryptocurrencies are mere transactions or entries in a shared ledger that can only be
changed upon meeting certain prerequisites. Typically, in a blockchain technology like the
Bitcoin network, each transaction consists of the involved parties’ – sender and receiver –
wallet addresses or public keys and the amount of such transaction. What attributes the safety
net in such a network to avoid fraud is that the sender needs to confirm a transaction with
their private key. After confirmation, the transaction is reflected in the shared ledger or
database. However, only miners are authorised to confirm transactions within a
cryptocurrency network. They need to solve cryptographic puzzles to confirm any specific
transaction. In exchange for their service, they receive a transaction fee in that particular type
of cryptocurrency and a reward.
Once miners confirm a transaction, they spread it to the network, and every node that
automatically updates its ledger accordingly. Furthermore, once a miner confirms a particular
transaction, it becomes irreversible and non-modifiable.
However, there is a crucial catch in mining. It is that as a particular type of cryptocurrency
gains popularity and more and more miners join the bandwagon, the miners’ fees and reward
per transaction go down. For instance, initially, miners could get 50 bitcoins (BTC) as a
reward for mining; however, due to the recent halving in May 2020, miners’ rewards have
gone down to 6.25 BTC. Cryptocurrencies work using a technology called blockchain.
Blockchain is a decentralized technology spread across many computers that manages and
records transactions. Part of the appeal of this technology is its security. The defining trait of
a cryptocurrency is that they are not issued by the government agency of any country making
them immune against any interference and manipulation from them.

1.2 STATEMENT OF THE PROBLEM:

Widespread adoption and usage of cryptocurrency for smaller transactions and large stores
of value is slowed and prevented by existing established payment networks and a steep
learning curve for cryptocurrency usage.
Bitcoin is almost assured not to become the global currency due to low Transactions Per
Second, a very low amount for all global transactions.

1.3 DEFINITION:

“Cryptocurrency is a digitised asset spread through multiple computers in a shared

network. The decentralised nature of this network shields them from any control from
government regulatory bodies.”
1.4 BACKGROUND OF CRYPTOCURRENCY:

In 1998, Wei Dai published a description of “b-money”, an anonymous, distributed electronic

cash system.Shortly thereafter, Nick Szabo created “bit gold”. Like bitcoin and other
currencies that would follow it, bit gold (not to be confused with the later gold-based
exchange, BitGold) was an electronic currency system which required users to complete a
proof of work function with solutions being cryptographically put together and published. A
currency system based on a reusable proof of work was later created by Hal Finney who
followed the work of Dai and Szabo.

The first virtual currency was Bitcoin, was created in 2009 and it was developed by Satoshi
Nakamoto. It used SHA-256, a cryptographic hash function, as its proof-of-work scheme. It
was created among a group of cyberpunk enthusiasts who believed that traditional fiat
currencies were too reliant on financial institutions and the government.
Another motivation for the development of bitcoin was the financial crash in 2008. This is
why Nakamoto, along with his community of supporters, has worked to create a
decentralized digital currency that is independent of financial institutions like banks. After it
was invented, Bitcoin was used among a small group of crypto supporters. But, as the
benefits of BTC became widely known, it was also accepted by various organizations and
businesses. After that Namecoin was created as an attempt at forming a decentralized DNS,
which would make internet censorship very difficult. Soon after, in October 2011, Litecoin
was released. It was the first successful cryptocurrency to use scrypt as its hash function
instead of SHA-256. Another notable cryptocurrency, Peercoin was the first to use a
proof-of-work/proof-of-stake hybrid. IOTA was the first cryptocurrency not based on a
blockchain, and instead uses the Tangle. Many other currencies have been created though few
have been successful, as they have brought little in the way of technical innovation. On 6
August 2014, the UK announced its Treasury had been commissioned to do a study of
currencies , and what role, if any, they can play in the UK economy. The study was also to
report on whether regulation should be considered.
1.4 Features of Cryptocurrency:

1. Digital:
Cryptocurrency only exists on computers. There are no physical coins and/or notes.
With that being said there are no reserves in any banks as well.

2. Decentralized:
Cryptocurrencies don’t have a central computer or server. They are distributed across
a network of thousands of computers. These are networks without a central server and
are called decentralized networks.

3. Peer-to-Peer:
Cryptocurrencies are transferred from person to person online. Users don’t deal with
each other through banks or any other middlemen. They deal directly with each other.
Banks are trusted third parties. Whereas, there are no trusted third parties in
cryptocurrency.

4. Anonymous:
This means that you don’t have to give any personal information to own and use
cryptocurrency. There are no rules or regulations about who can and cannot own or
use cryptocurrencies. The identities are always kept anonymous.

5. Trustless:
No trusted third parties means that users don’t need to trust the system for it to work.
Users are in complete control of their money and information at all times.

6. Encrypted:
Each user has a special code that stops their information from being accessed by other
users. This is called cryptography which is nearly impossible to hack. It’s also where
the crypto part of the crypto definition comes from. Crypto means hidden. When
information is hidden with cryptography, it is encrypted.
 7. Global:
Countries have their currencies called fiat currencies. Sending fiat currencies around
the world is cumbersome. Whereas, cryptocurrencies can be sent all over the world
hassle-free. Cryptocurrencies are currencies without border

1.6 ADVANTAGES AND DISADVANTAGES:

Advantages of Cryptocurrency:

1. No Restrictions on Payment
There is freedom of payment. For individuals living under the tyranny of governments,
Bitcoin can work as a significant financial tool to use as a medium of exchange without a
single entity or government having control over it.

2. Maintenance of Anonymity
Many people are working towards it since the anonymity is maintained. It protects identity
theft. Personal information does not matter of wrangle since the payment can be made and
finalized with the user’s virtual identity.

3. Use of Complex Algorithm

Since Bitcoin uses a complex algorithm, it cannot be manipulated by any individual,
organization, a country as some crazy serious skill is required to make a digital heist.

4. Speed of Exchange
How boring is it for you all to stand on line at the bank between banking hours just to get
your own money? How difficult it becomes when you need money urgently but you realize
it’s a public holiday?
That’s not something to worry about as cryptocurrencies offer very fast transactions. Bitcoin
takes around 10 minutes of validating exchange and it's less if you use other cryptocurrency
techniques.

5.No Third-Party Involvement

Cryptocurrencies are also gaining popularity as there is no third party involvement or
approval required. It removes delays in payments. What a great medium of exchange
especially for freelancers to keep complaining about delays in payment!

6. Free/ Very Less Transaction Fee

Most cryptocurrencies transactions are normally free. Anyone can exchange without paying
any exchange fees which is very beneficial compared to the normal banking system. But
some also offer transaction fees to speed up their transactions.

7. No Inflation
There will be no inflation since no political forces can change the order of use of coins and
mines in cryptocurrency.Despite the many advantages it has to offer, there are certain
disadvantages, it’s better to keep having knowledge about it.
Disadvantages of Cryptocurrency

1. Lack of Awareness/Knowledge
People are still unaware that digital currencies like Bitcoin exist. They have no or very few
background knowledge regarding cryptocurrency. Cryptocurrency is a newly introduced
system and it uses quite complicated blockchain technology, loads of turns and twists to learn
and adapt. Without comprehending cryptocurrency, it is risky to deal with it.

2. Use of Complex Technique

It is true that the use of complex algorithms makes it rare to create digital heists, but what is
the point if the worker does not know about the usefulness of this very well? It becomes very
difficult for customers as well as the service providers to understand and use cryptocurrencies
for transactions.

3. Highly Volatile in Nature

Since its early days, cryptocurrencies have been known for having a highly volatile nature. It
is unpredictable and risky to invest without understanding possible risk factors. As there is a
limited amount of coins and the demand for them is increasing by each passing day. As a
result, people become skeptical if they should invest in it or not.

4. Not Accepted Everywhere

Though the hype of cryptocurrency is rising each passing day, cryptocurrencies are still not
accepted everywhere. Some countries around the globe have still not accepted and legalized
the use of cryptocurrency, so it might still be difficult to transact money all around the world.

5. Victim of Theft and Scam

People still find it difficult to understand how cryptocurrencies and blockchain technology
operate, so they have often become victims of theft and scams by letting other people keep a
record of their bitcoins.

6. No Reverse of Payment or Recovery

Once you have made the payment, you can’t reverse it. If you mistakenly send money to
someone and then if they do not agree to refund the money, damn! you can do nothing but
feel sorry for yourself. You need to remember your account details because in case if you
forget your account details, there is no way you can retrieve it. The data will be lost and the
reason why you cannot get back your account is that blockchain technology uses very tight
security. This loss adds up distress.
7. Black Market
As personal identity isn’t shown anywhere, anonymity can give rise to the black market. It
can be a platform to conduct unlawful activities. According to www.top brokers.trade, the
infamous “dark web” marketplace Silk Road used Bitcoin, facilitating illegal drug purchases
and other illicit activities before it was shut down in 2014.

8. Scaling Issue
There is a scaling issue that programmers are trying to get rid of. The problem it creates is it
puts a limit on the speed of cryptocurrency transactions. They have been trying to sort out the
scaling issue in the near future.

9. May not be Exchanged with Fiat Currency

The government can restrict to convert cryptocurrencies into fiat currencies. There is no
direct exchange of Bitcoins into regular money that is being used in the market which might
devalue the cryptocurrencies and also be less demanded.
As some financial experts anticipate a major change in crypto is approaching the market, it is
very important to know both sides as knowledge about advantages helps you to utilize its best
leverages and the knowledge of the disadvantages will help you stay away from the pitfalls.
1.7 Types Of Cryptocurrency:

1. Bitcoin (BTC)

Bitcoin was the pioneer of a new, innovative alternative for money, which is known as a
digital currency. It was initially released in 2009 and was founded by Satoshi Nakamoto.
Bitcoin is based on a distributed ledger known as blockchain technology. About 18.5 million
Bitcoin tokens are currently in circulation, against a present market cap limit of 21 million.

Pros

● The biggest community of developers and investors

● Easy for newbies
● Supported by top exchanges and wallets
● Adopted in many mainstream companies including Bloomberg, Microsoft,
Overstock.com, Expedia.com, and others
Cons

● Low transaction speed (One transaction takes about 10 minutes and the Bitcoin
network can process 7 transactions per second)
 ● Bitcoin mining requires expensive, super powerful, and electricity consuming
hardware
● High transaction fees

2. Ethereum (Ether)
Created in 2015 by Vitalik Buterin, Ethereum is actually much more than just a digital
currency, which makes it the second-best currency for people to invest in. Ethereum is a
blockchain technology-based platform for developing decentralized apps and smart contracts.
Smart contracts are the agreements coded on the blockchain that execute themselves when
certain pre-set conditions are fulfilled. What sets Ethereum apart from the other types of
cryptocurrency is that you can start building directly on the Ethereum network blockchain.

Pros
● Building smart contracts which are often considered the next big thing in the
cryptocurrency universe
● Launching Initial Coin Offerings (ICOs) for other blockchain projects
● High transaction speed (few seconds)

Cons
● Scalability issues
● Uses obsolete mechanism (Proof-of-Work) to verify the transactions
● Network congestion
● Demands a lot of electricity
● Supports one coding language — Solidity

3. Ripple (XRP)

Founded in 2012, Ripple focuses on solving problems related to just one industry —
International Payment Transfers. It aims to make international transactions both fast and
cheap. It is more well-known for its digital payment protocol than for its XRP crypto.

Pros

● International money transfer takes a few seconds

● Considerably low fees
● Being tested in the real world
● Used by American Express and Santander
Cons

● Centralized
● Banks and financial institutions (Ripple’s biggest users) have started developing their
own cryptocurrencies

4. Litecoin (LTC)

Charlie Lee, a former Google employee, created Litecoin in 2011 to improve on the existing
Bitcoin technology- shorter transaction time, lower fees, and more concentrated miners.
Similar to Bitcoin, Litecoin is just a digital currency that doesn't provide a platform for smart
contracts. Litecoin has stood the test of time for its efficiency and is now among the most
popular types of cryptocurrency.

Pros

● Transactions take around 2.5 minutes

● Average Litecoin transaction fees $0.179
Cons

● Apart from transaction speed, it is facing tough competition from coins that offer
privacy, smart contracts, and international payments, etc.
● Mining is expensive and requires specialized powerful hardware

5. Bitcoin Cash (BCH)

Bitcoin Cash, introduced in 2017 has one main difference from the original Bitcoin, and that
is its block size: 8MB. Bitcoin has a block size of 1 MB, which means that Bitcoin Cash
offers faster processing speeds

Pros

● Faster processing speed

● The average Bitcoin Cash transaction fee - $0.067
Cons

● Not completely decentralized

● As expensive as Bitcoin mining
● Lesser returns
● Not easily available
6. Cardano (ADA)
Cardano, co-founded by Charles Hoskinson, is an “Ouroboros proof-of-stake” cryptocurrency
that was created with a research-based approach by engineers, mathematicians, and
cryptography experts. Due to the rigorous process of extensive experimentation,
peer-reviewed research, and writing 90 papers on blockchain technology, Cardano seems to
stand out among its proof-of-stake peers as well as other large cryptocurrencies.
Pros

● Supported by an academic community of global researchers and scientists

contributing to its blockchain development
● Much more scalable with a current capability of 257 transactions per second
● Intends to bring about data interoperability which enables interaction with other
cryptocurrencies and their infrastructures in a seamless manner
Cons

● Hasn’t fully achieved all proposed ideas

● Huge competition from Ethereum to EOS and NEO to Fusion

7. Stellar (XLM)

Stellar is an open blockchain network that is focused on money transfers. Its network is
designed to make money transfers faster and more efficiently, even across national borders.
Time-consuming transactions between banks and investment firms can now be done almost
instantly with no mediators and low transaction fees.

Pros

● More decentralized
● Strategic partnerships with over 30 banks and with organizations like Deloitte and
IBM
Cons

● Tough competition with Ripple

8. NEO

NEO, formerly called Antshares and developed in China, is aggressively looking to become a
major global crypto player. Its focus is smart contracts (digital contracts) that allow users to
create and execute agreements without the use of an intermediary. The main feature that
investors find appealing is the similarities between Ethereum and NEO.
Pros

● Can complete 10,000 transactions per second

● Supports multiple languages like C++, C#, Go, and Java
● Huge market base in China and Asia
Cons

● Supported by government
● Target competition- Ethereum, Cardano, EOS

9. IOTA

IOTA, or Internet of Things Application, doesn’t actually work with a block and chain; it
works with smart devices on the Internet of Things (IoT). This enables the communication
between various objects with sensors, via the internet. IOTA focuses on making this
technology more secure, seamless, and scalable. Its protocol is known as Tangle.

Pros

● Zero transaction fees

● Infinite scalability
Cons

● The success of IOTA depends on the success of Internet-of-Things (IoT), which

makes its future more unpredictable
● Recently discovered a security problem with Tangle
● Stiff competition with probable big IoT players

10. EOS

EOS, created by Dan Larimer, is building a platform for developers to build decentralized
applications and smart contracts, but with a vast improvement in technology.

Pros

● More scalable than Ethereum

● Uses an advanced mechanism (Delegated Proof-of-Stake + Byzantine Fault
Tolerance)
● 10,000-100,000 transactions per second
● Supports multiple languages including C++
● Highly experienced team with a proven track record
Cons

● Not predictable as it hasn't been launched yet

1.7 OBJECTIVES OF THE STUDY:

This research work has been carried out for attaining below mentioned objectives.

● To know the meaning of cryptocurrency.

● To understand the process of cryptocurrency.

● To know the role and importance of crypto in today’s modern world.

● To study in detail about blockchain technology.

● To examine the comparative analysis of performance of traditional and digital

currency.

● To study the current trends and future scope of cryptocurrency.

1.8 HYPOTHESIS:

To analyse the comparative performance of cryptocurrency in recent time and future

scenarios We will take the hypothesis as

H0: There is no significant difference between the performance of cryptocurrency in recent

times and in future in the financial market.

H0a: There is no significant difference between the controlling body of cryptocurrency as

compared to other financial instruments.

H0b: There is no significant difference in the working of cryptocurrency as compared to other

financial instruments.

H1: There is a significant difference between the performance of cryptocurrency in recent

times and in the future in the financial market.

H1a: There is a significant difference between the controlling body of cryptocurrency as

compared to other financial instruments.
H1b: There is a significant difference in the working of cryptocurrency as compared to other
financial instruments.

H1c: There is a significant difference in the processing of cryptocurrency as compared to

other financial instruments.

1.9 LIMITATIONS OF THE STUDY:

Research study could not be carried out without any limitations.

● Time constraints: Due to the shortage or less availability of time it may be possible
that all the related and concerned aspects may not be covered in the project.

● The study is limited to Mumbai city only.

● Analysis is done on limited availability of data.

● The study is based on the opinion of respondents(questionnaire) and these can be
biased.

● The questionnaire might have excluded some important factors therefore the analysis
and interpretation might be exhaustive.

● It is difficult to evaluate the accuracy of secondary data.

● Desired information is not available and outdated.

● Limited number of respondents.

1.10 What is Blockchain Cryptocurrency:

In the concept of a digital commodity, cryptocurrency blockchain is intended to serve as an

interchange media. In comparison to physical currencies, blockchain cryptocurrency runs on
digital networks and is mostly used to protect online financial transactions. These
cryptography or encryption layers can also be used to monitor the formation and transition of
additional modules. A cryptocurrency blockchain may take several forms, such as Bitcoin,
Litecoin, Ether, Ripple, etc.

With the implementation of blockchain currency, anything might be produced that cannot be
duplicated and sent directly from person to person. These deals do not involve developing a
trustworthy third person, corporation, or computer server in a circle that acts as a source of
confidence. Operations of their users, and increasingly nuanced protocols incorporated into
governing standards, regulate the availability and value of cryptocurrencies.

Miners–consumers who anchor advanced computer functions to log transactions and receive
newly generated cryptocurrency units and transaction prices in return–play an essential role
in ensuring that cryptocurrencies run stably and smoothly.
The most striking distinction between blockchain money and the physical currency is using a
decentralized transactions management mechanism contrasted with centralized digital
currencies and central banking structures. This decentralized functionality is focused on the
distribution of ledger technologies, which generally functions as a blockchain database.

1.11 How Cryptocurrency and Blockchain Works:

Blockchain is an online transaction; the technology behind blockchain essentially means that
blockchains power the entire cryptocurrency concept. Interestingly, the blockchain has been
developed to handle cryptocurrency. On the distributed header, a blockchain simply stores
data.

The cryptocurrency blockchain is the primary lead in which all previous purchases and
operations are usually registered, and at any given time, validates the ownership of all
currencies. The blockchain includes a ledger of a cryptocurrency’s entire transactional
background.

It has a limited duration and a limited number of transactions that occur in due course, each
node of the software network of cryptocurrency stores identical copies of the blockchain. The
decentralized server farms’ network is operated by technical experts or groups of people
called miners. Miners actively record cryptocurrency activities and authenticate them.

Crypto-monetary transactions demonstrate secrecy; the validity of their nature is disputed in

some aspects. A technology that works effectively to render online cryptocurrency purchases
safer and build an impregnable firewall through which hackers cannot infiltrate was essential
to ease these frauds in recent days. Safety is the first stage and concern of the blockchain in
cryptocurrency. In addition to offering a stable network, blockchains also guarantee openness
as the cornerstone to all transactions in cryptocurrencies.

Anyone on the internet with blockchains can access the transactions that exist since they are
initiated on a cryptocurrency device. This makes it easy for consumers to carry on with online
purchases transparently. A ledger is also available on all machines worldwide to keep track of
the transactions. This means that a hacker cannot handle transactional data from a single
position.

Even if hackers are successful with an attack and access a blockchain, they cannot alter any
previous transaction blocks. All these blocks are knitted together in perfect cryptographic
order and in a sequence. Any bitcoin transaction that often occurs is blocked and grouped
within 10 minutes of completion. Each block contains a hash code that links it to its former
block, thereby rendering it tamper-proof in isolation and related to the entire blockchain
system.

1.12 CURRENT TRENDS OF CRYPTOCURRENCY:

Due to the rapid development of information and communication technologies, many

activities in our daily life have been merged online and they become more flexible and more
effective. A huge growth in the number of online users has activated virtual word concepts
and created a new business phenomenon which is cryptocurrency to facilitate the financial
activities such as buying, selling and trading.

2020 was a remarkable year for cryptocurrency as COVID-19 accelerated the digital
transformation. No doubt, 2021 is also witnessing major breakthroughs and achievements as
cryptocurrency trends are shaping the future of finance. We are halfway through 2021, but
new developments in the crypto world are emerging each day. In the next six months, we can
expect more crypto adoption and top cryptocurrency trends ruling the crypto spaces.

DeFi
Decentralized financial services or DeFi projects will be one of the biggest trends in the
crypto world in 2021. DeFi projects have built a strong foundation in the financial field lately.
Moreover, experts believe that DeFi will be one of the key drivers for the accelerated
adoption of digital storage of assets or tokenization. Also, with the growth of Ethereum (built
on DeFi protocols), DeFi will also boom.
Growth of Stablecoins
In 2020, the volume of stablecoins in circulation was increased by 500%. Dollar pegged
stable coins will see more light of the day in 2021 with Tether and USDC being the market
leaders. Stablecoins are one of the trending crypto coins today. With the advantages that
stablecoins offer, more investors are investing in them to protect themselves from usual
crypto market volatility.

Introduction of Tax Regulations

This bubble is definitely growing bigger with the increased adoption of cryptocurrency from
different countries across the world. Still today, crypto taxation is ambiguous. But, this year,
we might see crypto standard crypto regulations that will govern crypto activities and
transactions. This crypto market trend will come into effect soon.

Central Bank Digital Currencies (CBDCs)

Experts say that with regulations coming into the picture, central banks will also be a part of
the game with the introduction of Central Bank Digital Currencies (CBDCs). This can also
become the future of payments and finance. You must have heard of China creating its own
digital money – digital yuan. Similarly, other countries such as the USA, UK, Europe, etc. are
attempting to create tokenized money.

Cryptos will go Public

Growing cryptocurrencies may test their waters for IPOs. With crypto exchanges also
growing in popularity, even they would go public. This might make crypto a well-established
market with major players defining the scope.

Make Way for Exchange Traded Fund (ETF)

Crypto lovers are desperately looking forward to the ETF this year. However, it might take
some time as the US SEC has rejected its decision on ETFs for a long time now. Nonetheless,
if ETFs get approved, more traders will invest in cryptocurrencies instead of having exchange
wallets. This will bring a boom in the crypto world.

NFTs (Non-fungible Tokens)

NFTs are digital assets representing products in the real as well as the digital world. It is quite
useful for people who wish to trade items as they can avoid the complex onboarding process
of a centralized platform to trade them. NFTs are already widely being used in the art and
gaming industry. This year, we will see more adoption of NFTs.

Crypto Tax
Be ready to pay crypto tax as many countries are planning to implement it soon.
Governments of different countries are creating tools to monitor cryptocurrency transactions.
In 2021, we might see crypto exchanges reporting on their customers’ gains to their tax
authorities.
5G will go Mainstream
5G will be extensively used to decide on mining operations, DeFi applications and to
introduce new services in the market. Network issues for traders will be resolved as 5G will
offer high-speed connectivity, eliminating the need of placing servers close to crypto
exchanges.

Millennials’ interest in Crypto

Apart from investors, millennials are really interested in the crypto field. More educational
material on cryptocurrency will be available and accessible to guide millennials in the highly
volatile crypto market. Crypto market trends today will guide millennials to invest
strategically.

1.13 FUTURE SCOPE OF CRYPTOCURRENCY:

Cryptocurrency represents valuable and intangible objects which are used electronically in
different applications and networks such as online social networks, online social games,
virtual worlds and peer to peer networks. The use of virtual currency has become widespread
in many different systems in recent years.
This paper investigates the user's expectations of the future of cryptocurrency. It also explores
the users' confidence in dealing with cryptocurrency in a time that using such virtual money
is not fully controlled and regulated. Besides, the paper is aimed to measure the spread of
cryptocurrency used to have a clear picture from the practical view.

Predicting the future of the weird and wonderful world of crypto might be a tall order for
even the most prolific of psychics. Just five years ago Bitcoin was recovering from its first
crash and was trading at around £220 – with experts continually dismissing the
cryptocurrency as a bubble.
Between then and now, Bitcoin has hit the dizzying heights of around £15,000 in late 2017,
followed by a hefty subsequent crash – dropping nearly as low as £2,500 one year on.

To make even a ballpark estimate on the value of specific cryptocurrencies over the next five
years is nothing short of fanciful.
We can, however, draw on observations over the influence cryptocurrencies have been
making on the wider world, and make logical predictions based on what the likes of Bitcoin
have taught us so far.

Here’s an insight into what the world of crypto will look like by 2025:

Welcome to a paperless society

Cryptocurrencies will play their respective role in rendering paper money and billing obsolete
in the coming years.
Although this prediction is far from bold – after all, it’s a safe bet that you’re currently
carrying much less physical cash in your wallet compared to, say, five years ago – but the
widespread adoption of crypto-based payment solutions is certainly noteworthy.
In their published article in Medium, crypto-investment organisation, CoinBundle explains
that digital coins could soon forge a rival for today’s popular transaction tools, Apple Pay and
Samsung Pay.
Using the technology of the time, users can set up transactions through a dedicated app –
CryptoPay – which could be accessed via a biometric scan on your smartphone, or through a
smart contact lens on your eye.
With the help of your smart contact lens, you can abandon the tired old payment methods of
2019 and securely conduct transactions by blinking “a specific number of times – which you
get to decide – to execute a payment.”

Crypto will thrive in the face of tradition…

Cryptocurrencies entered the world off the back of an all-consuming financial crisis – the
effects of which we’re still feeling today.
In times where the prospect of recession loomed, the prospect of investing in a decentralised
entity like cryptocurrencies seemed like an attractive opportunity to escape the pinch of
financial hardship.
With Barron’s reporting that two-thirds of economists predict some form of economic
downturn by the end of 2020, the lure of investing outside of traditional currency will become
more alluring to investors.
If there’s enough speculation that cryptocurrencies could act as a safe haven for our finances
during times of wider economic hardship, it’s fair to assume that established names like
Bitcoin and Ethereum will experience a rise in value – however it would be foolish to discuss
the sustainability of any rise in market value of a specific currency.
…but it will remain volatile, mostly

When it comes to the world of crypto, the only true certainty is uncertainty. When all it takes
is twelve months for an asset to shed 80% of its market share, it’s a fool’s game to be making
specific predictions pertaining to cryptocurrency prices in the future.
What we can be certain of, however, is that by 2025 there will be an abundance of technology
that will allow cryptocurrencies to thrive. From intricate blockchain networks that can
leverage instant transactions to the reimagining of micropayment portals for services online –
there’s plenty of reason to embrace the volatility and be excited for cryptocurrencies in 2025.
2. LITERATURE REVIEW:

Pournader et al. (2020) posit that by simplifying payments through cryptocurrencies,

companies can make instant money transfers, reducing commissions necessary to pay for
goods and services. For example, Ripple is an open-source, peer-to-peer decentralized digital
payment platform that enables near-instantaneous transfers of currency regardless of their
form. Ripple used the blockchain to connect existing bank ledgers and facilitate near
real-time cross-border payments. Ripple can handle more than 1,500 transactions per second.
Ripple users are equipped with a pair of signing/verification keys to send payments securely.
Each Ripple transaction submitted to the network requires a transaction fee specified in the
blockchain. Today, some online shops allow their consumers to make their payments in
cryptocurrencies, such as bitcoin, Litecoin and Peercoin, despite the fact that cryptocurrencies
are not yet accepted in many countries.

David Yermack (2017) The author is of the view that the internet is going to be one major
force that will ensure the reduction of the role of the Government in the coming days. With
the Internet came the need for E-cash which can be transacted safely online without the
intervention of any Central Bank or other banks who make money out of our hard earned
money in the name of charges and transaction cost. Thus comes in Cryptocurrency which is
digital money which means that it can only be transacted online and which is secured using
crypto functions and can be transacted between two people without the intervention of a third
agency. Great so far, but what about the Gangsters who will have an advantage of being
transacting their ill-earned money without the knowledge of law agencies? Yes, this problem
is there, but it's not that the trial of money cannot be checked as the Cryptocurrency leaves
behind a time-stamped trial of money and thus great digital evidence too. The fastest growing
Cryptocurrency is the Bitcoin which has found to be widely accepted over the world and thus
allowing most of the people to enjoy life without paying heavy charges to the banks and other
intermediaries. The acceptance and growth of Bitcoins led by other coins have been very fast
currently, and the prices of these currencies have been rising fast enough to make everyone sit
up and take notice of it. The author is sure that there is no limit to the Bitcoin and it may
never become the super and universal currency of the world but it's here to stay and lead the
way to a new way to transact business. With the growth of Bitcoins and increase in the
dependability over a period, more and more people will transact directly, and thus chances of
extinction of most of the banks cannot be ruled out. Transactions are settled in minutes and at
a small transaction cost and thus bank and credit card companies have a great competition in
hand. They also threaten the existence of stock exchanges and all other financial institutions
with the technological advantage of the Blockchain behind them. It’s time for us to sit up and
take notice.
V.V. Glukhov Et El (2015) The study finds that globalization and an opening of the
economies have influenced and change the growth of modern ways of finance and
transactions around the world. The study has striven to establish a connection between the
Electronic money and Electronic Finance. It has tried to evolve the growth of e-commerce
and the way the same has grown. The author has described the various ways of transfer of
funds, and one of them is the virtual currencies. The study brings forth the need for adopting
these new modes of funds and has brought forth the relevant hypothetical proof for the new
fiscal ideas. According to the author, these angles have not been studied so far and thus the
same needs to be studied as they present a challenge to the world due to the sheer speed of
incursion of the same.

According to Karlstrom (2014), decentralized currency schemes try to avoid central

institutions as much as possible and are built on a network of transaction partners. As long as
the transaction partners can observe each other, they can build up trust based on their
behaviors. If observation of the transaction partners is not possible, other mechanisms have to
be found to establish reliable transactions. One solution lies in cryptocurrencies, which are
decentralized currency schemes based on cryptography. A cryptocurrency is a digital token
produced by cryptographic algorithms. This token is then transported across cyberspace using
protocols such as peer-to-peer networking. Its value is mainly derived from the demand and
supply for such tokens.

A. Seetharaman (2017) In this age of the Internet, we are connecting every available thing
to the Internet so that it can be remotely accessed or guided. The paper thus discusses the
concept of linking money with the internet. With the advent of Cryptocurrencies, the world is
waking up to the advantages of the same and paper currency appears to be making way for
Cryptocurrencies in days to come. Not only will it lead to the elimination of counterfeit
currency, accountability, and end of theft and robbery but also ensure a real value of the
currency. Already America is fighting with China for undervaluing its currency Yuan. With a
Cryptocurrency based economy this issue will be laid to rest.

Vivian A. Maese et al. (2016) What are Cryptocurrencies? Are these Cryptocurrencies
money? The author feels that they are a medium of exchange in money terms. Because they
are not backed by Government or Central banks they cannot be called money but money
worth of trade or tokens. Cryptocurrencies are currencies which are encrypted and traded
online and thus can also be called the Digital or virtual money.

Fiametta S. Piazza (2017) The paper finds that the growth of the Internet has brought in a
new infrastructure and advantages to the world. Bitcoin has grown with the growth of the
Internet and has been hugely successful. Bitcoins work on a peer to peer basis and are backed
by the Blockchains. This function of the Blockchains can be used in other fields also.
Blockchains can be a great addition to business as they help in faster and safer processing.
The business house would do well to have a safe way to keep records and transact given the
growing cybercrimes. The paper suggests that smart contracts would eventually replace the
business contracts and Blockchains will play an essential role in business growth.
A study by (Folkinshteyn D.,2015) looks into the motives for people from undeveloped or
developing countries to be using cryptocurrencies. These include:
• Using them as a means to facilitate low-cost remittances internationally at no cost.
• Ease of use, just by downloading a wallet app rather than going through a lengthy procedure
from financial institutions.
• The technology that cryptocurrencies underpin, offering the basis for a richer set of
financial services (Folkinshteyn D.,2015)

In the study conducted by (Bruijl, 2017), it was observed that cryptocurrencies are still
limited to highly educated people. A paper by (Schuh and Shy, 2016) also has similar
findings in the US; consumers are still less aware of bitcoins. Males are more aware than
females about cryptocurrencies. High income and education individuals also have more
awareness relating to cryptocurrencies. Studies settle that the new generations are more
advanced into the Internet and communications technologies related things (Arora &
Rahul,2017).

Another research conducted on the Greek populace by (Tsanidis et al.,2015) showed that
males with a graduate degree are more aware of the concept. Most of the participants in the
research came to know about bitcoin in the last two years. The study concluded stating the
success of Bitcoins was not clear and there is still a lack of awareness in the Greek populace
about Bitcoins. A study by (Alaeddin & Altounjy, 2018) found that in Malaysian students
there was a significant impact of awareness and trust that generated an intention to use
cryptocurrencies. A few people actually use cryptocurrencies; this can be credited to it not
being acknowledged widely due to its fluctuating price. A few countries have hence chosen
to characterize them as a digital asset rather than currencies. Another study by (Shahzad et
al., 2018) in central China proposes that awareness and trust play a significant role in
determining the purpose to use Bitcoin.

Benjamin W. Akins et al. (2014). Cryptocurrency is a growing tribe, and amongst them the
fastest growing is Bitcoins. It has very quickly grown throughout the world. Many
characteristics are found associated with the Bitcoins system, one of them is the low
transaction costs and peer to peer technology which ensures user privacy. Because it is so
cheap and ensures privacy it attracts people as a medium of electronic payment. A large
number of people are accepting Bitcoins including many merchants, and online shops are
accepting them worldwide.

Sushilkumar M. Parmar (2014). The author compares virtual currency with fiat currency,
i.e., paper currency and the issues related to the Cryptocurrencies. Currently, the
Cryptocurrencies are in the infant stage of development, but they hold a great future though
they lack legal tender. Many instances of misuse of the same for money laundering and
terrorist funding have come to the knowledge of agencies in current times.
Thabiso Peter Mpofu et al. (2014). Bitcoins are Cryptocurrencies developed by
Satoshi Nakamoto. The system of the transaction is decentralized and reported on widely
distributed ledgers and thus cannot be hacked as they are not stored in one place. To transact
in Bitcoins or any other Cryptocurrency a person is required to have an E-Wallet which has
one or more public and private keys associated with it. Transactions here are based on a direct
person to person basis without any other agency involved.

G. Krishnapriya et al. (2014). Most of the people are using the internet to mine
Cryptocurrencies which can be used as a tool of money laundering. Money can be transferred
instantly without the privacy of government agencies. The article proposes many ways and
techniques which identify the group of accounts which aid in money laundering and also how
to identify the source account also.

Primavera De Filippi (2014). The current paper studies the growth of Cryptocurrencies,
especially that of Bitcoins in European nations and how they are posing a challenge to both
the Government and the banks. In the absence of any regulation, they are growing by leaps
and bounds, but fears of it being taken over by the underworld and terrorists to serve their end
are not ruled out. The author thus proposes legislation on Cryptocurrencies to harness them.

Charles W. Evans (2015). The paper analyzes the application of Bitcoins and whether the
same can be used for Islamic Banking. Being anonymous is Bitcoin apt for Islamic banking.
Islamic Banking works on the concept of Sharia laws and is bound by the framework of the
rules. Usually, banking is based on payment of Interest to the account holder whereas the
same is considered Riba and forbidden. Thus the normal banking does not meet Sharia laws.
In this context, the author has attempted to find if banking using Bitcoins and the anonymous
ledger called the Blockchains are compliant with Sharia laws.

Vora G. (2015). Cryptocurrencies have gained a lot of name after the inception of Bitcoins
and how they have proved to be a disruptive technology. Cryptocurrencies are related to
money laundering activities at present, but they hold a future. Cryptocurrencies will provide a
means of alternate payments, and its beneficial functions will outdo the vices which are
connected to it at present. Due to its advantages, the number of users of Cryptocurrencies is
increasing

W Srokosz (2015) Cryptocurrencies are a type of Virtual currency and because of its typical
nature and a new type of technology that it has brought in it has been widely received
amongst people. It has created new types of transactions Cryptocurrencies are better suited to
be used as money and operate scientifically and has both national and international
ramifications. It studies the economic and legal issues connected with Cryptocurrencies.

Ramesh Subramanian et al. (2015) It focuses on the history of Cryptocurrencies and how
they emerged and how Bitcoins, a type of Cryptocurrency, has grown from strength to
strength. It describes how the transactions take place on this count and how safe or unsafe are
these transactions and a view of the future challenges.

Kamakolanu Anuradha (2015). There were many electronic currencies that got merged in
the global capital market out of these currencies. Bitcoin explains the vital role and gaining
strength to strength every day. The article is focused to measure the growth performance of
Bitcoin along with global economy movement. This paper has focused on the period of 2010
to 2015 present dates. Regression weight estimation indicated that Bitcoin and gold were
influenced by the global currency dollar index. Johnson co-integration analysis has been
applied to augmented dick fuller stationary data and found global inflation granger cost
Bitcoin but fail to influence the MSCI. Calmar ratio had proven that Bitcoin performance was
found to be superior from the inception period when it compared with Baltic dry index to
present date. Regression equation as predicted that the Bitcoin value is expected to move
upside shortly. This study is useful for the global currency trade as investors of
Cryptocurrency.

David Yermack (2017). Blockchains are an application on which Bitcoins work and are
distributed ledgers which are encrypted to store data and information safely. Blockchains
have attracted the financial industry and banks into adoption to suit their ends. They can be
applied as a platform for trading and authorization. They offer meager cost of maintenance
and importantly they cannot be hacked into as they are not on any central server. They are
seen as a step forward in the maintenance of records about stocks, patent and copyright
authorization and other business applications. Since the record is time stamped, chances of
efforts to cover frauds can be checked. The smart contract can be kept on the made and
executed on these Blockchains without fear of tampering the same. Blockchains thus offer a
great opportunity to the corporations.

Victor Dostov (2014). The article takes a close look at Cryptocurrencies such as Bitcoins and
identifies their vulnerability to money laundering and activities such as terror finance. The
article delves very specifically at the Money laundering and Terror financing risks posed by
the Cryptocurrencies and Bitcoins. The author has used the Bitcoin protocol and has analyzed
the characteristics viz a viz cash and other cashless payments. The author has concluded that
the air of suspicion around the Cryptocurrencies appears to be ill-founded and overrated and
that the Cryptocurrencies should be classified as payment instruments and not at private
currencies. It would be in the interest of the nations to allow them to be a part of a financial
system as it will mitigate the risk of money laundering and terror financing.

Mark Lennon (2017).The article is on NASDAQ which the world first exchange is
maintaining all records electronically. NASDAQ has made itself available to the world as a
trading platform to other nations also. Buoyed by the success, NASDAQ has introduced
Blockchain based Fintech, i.e., Financial Technology in its system of trading. This has
provided robust trading solutions and has reduced the cost of accounting. The paper aims to
find if the markets have benefited from this move of NASDAQ.

Dan Mcginn Et Al (2016) Bitcoins is the Cryptocurrencies which has dominated the league
of Cryptocurrencies. Bitcoins are considered to be anonymous and use mathematical
algorithms for various transactions such as mining of new coins or confirmation of
transactions, and this mathematical algorithm is difficult to come by and use supercomputers
to crack the same. Bitcoins have become famous and are in use mainly because of the
anonymous nature of the transfer of funds, but there are reports that this also aids in money
laundering operations. The existence of the algorithm-based transfer of funds meant to make
transactions free from hacking and misuse cannot prevent denial of services and double
payment of Bitcoins, and thus the system is still not fully secured. It is therefore evident that
the Bitcoins are not free from disadvantages though the advantages outweigh them.

3. RESEARCH AND METHODOLOGY:

3.1 SOURCES OF DATA:

Data is important for the research process. Collection of data includes Primary data and
Secondary data.

● Primary data is the information directly collected from approximately 100

respondents with the help of Google form questionnaire.

● Secondary data is the information collected from published and unpublished books,
journals, printed interviews, census rate, library searches and brochures etc.

3.2 SAMPLING:

The samples are collected from the responses which are received with the help of google
questionnaire.

3.3 TOOL USED:

● Simple percentage method

It refers to the type of rate, which is used in comparison between the sources of two
data
P = X/Y*100
Where X = Numbers of responses falling in a specific category to be measured.
Where Y = Total number of responses.

3.4 RESEARCH DESIGN:

In this research project the framework of research methods and techniques chosen by the
researcher are trends analysis, data collection, comparative analysis and surveys to
understand the current trends and future trends of cryptocurrency.

3.5 RESEARCH AREA:

The researcher has made research within peer groups and in neighbourhoods.

3.6 DATA COLLECTION INSTRUMENT:

The type of instrument used for the data collection for surveying was google form
questionnaire.
3.7 DATA PROCESSING AND ANALYSIS PLAN:

The data was processed and analysed with the help of google forms using excel sheet.

3.8 VALIDATION TOOLS:

The question in the questionnaire was discussed with the guide professor to ascertain the
accuracy of the questions and then finalized after discussion with experts.

4. DATA ANALYSIS & INTERPRETATION:

 1. Age Group

Question No.of Responses

20-30 67
31-40 20
41 & Above 13
Total 100

Interpretation:
As per data collected, the maximum no. of respondents are from the age group of
20-30 years. Among 100 responses, there are 67 respondents in the 20-30 years and 20
respondents in the 31-40 years and 13 respondents in the 41- above years.

2. Gender

Question No.of Responses

 Male 55
Female 45
Others 0
Total 100

Interpretation:
As per data collected, the maximum no. of responses are from male respondents as
compared to other respondents. Among 100 responses, there are 55 males, 45 females
and 0 other respondents.

3. In which sector do you work?

Question No.of Responses

 Private Sector 65
Public Sector 15
Self-Employed 20
Total 100

Interpretation:
As per data collected, the maximum no. of responses are collected from people
working in the private sector. Among 100 responses, there are 65 respondents works
in the private sector and 15 respondents works in the public sector and 20 respondents
are self-employed.

4. Do you know about cryptocurrency?

Question No.of Responses

 Yes 86
No 14
Total 100

Interpretation:
As per data collected, the maximum number of respondents are aware about
cryptocurrency. Among 100 responses, there are 86 respondents are aware about
cryptocurrency and 14 respondents are not aware of it.

5. Why do people want an alternative currency and specifically cryptocurrencies

like bitcoins?
 Question No.of Responses
Distrust of the current financial 43
system
Get rich quickly 21
New financial plans
58
Low cost border payment
41
Total 100

Interpretation:
As per data collected, the maximum number of responses are of new financial
plans. Among 100 responses, there are 43 responses are of distrust of the current
financial system, 21 responses are of get rich quickly, 58 responses are of new
financial plans and 41 respondents are of low cost border payment.

6. Where do you prefer to invest your money?

 Question No.of Responses
Bank 13
Gold 14
Mutual funds 26
Cryptocurrency 41
Others 8
Total 100

Interpretation:
As per data collected, the maximum number of responses are in favour of investing
in cryptocurrency. Among 100 responses, there are 13 responses are for banks, 14 are
for gold, 26 are for mutual funds, 41 for cryptocurrency and 6 responses for others are
selected for investing from the respondents.

7. In your opinion, which cryptocurrency provides the best investment opportunity?

 Question No.of Responses
Ethereum 52

Bitcoins 74

Ripple 21

Dash 12

ZCash/Monero 13

None 4

Total 100

Interpretation:
As per data collected, the maximum number of responses are in favour of bitcoins.
Among 100 responses, there are 52 responses for ethereum, 74 are for bitcoins, 21 are
for ripple, 12 are for dash and 13 responses are for zcash/monero and 4 for none are
selected for investing in cryptocurrency from the respondents.

8. Do you think Bitcoin's market cap will be surpassed by another cryptocurrency?

 Question No.of Responses
Yes 38
No 10
It’s possible but its too early to tell 52
Total 100

Interpretation:
As per data collected, the maximum number of responses are not sure about it.
Among 100 responses, there are 38 responses for yes, 10 are for no and 52 responses
are not sure as it is too early to tell about the surpassed of bitcoin by another
cryptocurrency.

9. In your opinion, which cryptocurrency has or will be likely gain, the most abroad
acceptance for use in making payments for goods and services ?
 Question No.of Responses
Ethereum 10

Bitcoins 70

Ripple 6

ZCash/Monero 5

Dash 4

Others 5

Total 100

Interpretation:
As per data collected, the maximum number of responses are in favour of bitcoins.
Among 100 responses, there are 10 responses for ethereum, 70 are for bitcoins, 6 are
for ripple, 5 are for dash and 4 responses are for zcash/monero and 5 for others are
selected likely gain, the most abroad acceptance for use in making payments for goods
and services.
10. Are you willing to take on legal risk in pursuing your investment in
cryptocurrency or your development of a cryptocurrency business as disrupters
have done in other industries?
 Question No.of Responses
Yes 75
No 25
Total 100

Interpretation:
As per data collected, the maximum number of respondents are yes. Among 100
responses, there are 75 responses are yes and 25 responses are not willing to take on
legal risk in pursuing your investment in cryptocurrency.

11.According to your opinion, sovereign or central banks should create their own
cryptocurrencies?
 Question No.of Responses
Yes 78
No 22
Total 100

Interpretation:
As per data collected, the maximum number of respondents are yes. Among 100
responses, there are 78 responses are yes and 22 responses are no hence many
responses are in favour sovereign or central banks should create their own
cryptocurrencies.

12. Investors should be allowed to invest in Exchange Trade Funds (ETFs) holding
cryptocurrencies?

Question No.of Responses

 Yes 87
No 13
Total 100

Interpretation:
As per data collected, the maximum number of respondents are yes. Among 100
responses, there are 87 responses are yes and 13 responses are no hence many
responses are in favour of investing in Exchange Trade Funds (ETFs) holding
cryptocurrencies.

13. Could you please indicate the level of risk in managing the private key
management, cryptography vulnerability and inability to remove content?

Question No.of Responses

 No Risk 8
Low Risk 14
Medium Risk 45
High Risk 33
Total 100

Interpretation:
As per data collected, the maximum number of responses are medium risk. Among
100 responses, there are 8 responses for no risk and 14 responses for low risk and 45
responses for medium risk and 33 for high risk are the level of risk involved in
cryptocurrencies.

14. What kind of cryptocurrency validation method do you think has the greatest
long-term sustainability?
 Question No.of Responses
Validation transaction via mining 12

Validation transaction via 75

holding certain number of coins

Validation transaction via your 43

identity or reputation

Others 12

Total 100

Interpretation:
As per data collected, the maximum number of responses are validation transaction
via holding certain number of coins. Hence it is considered as a cryptocurrency
validation method which has the greatest long-term sustainability.

15. Do you think the industry should develop a common voluntary standard?

Question No.of Responses

 Yes 83
No 17
Total 100

Interpretation:
As per data collected, the maximum number of respondents are yes. Among 100
responses, there are 83 responses are yes and 17 responses are no hence many
responses are in favour of the industry should develop a common voluntary standard.

16. Will the role of the traditional financial system decline due to the development
of cryptocurrencies?

Question No.of Responses

 Agree 76
Disagree 24
Total 100

Interpretation:
As per data collected, the maximum number of responses are yes. Among 100
responses, 76 responses are yes and 24 responses are no hence many responses are
agreed that the role of the traditional financial system will decline due to the
development of cryptocurrencies.

17. What should be added value or consumer to cryptocurrencies over current

digital mean of payment ?

Question No.of Responses

 Volatile investment 30

Fast development 57

Secure transaction 64

Decentralization 27

Total 100

Interpretation:
As per data collected, the maximum number of responses are in favour of secure
transaction. Hence many responses agree that the added value or consumer to
cryptocurrencies over current digital mean of payment are secure transactions and fast
development..

18. Will cryptocurrencies invigorate world economies or create more frequent

economic fluctuations and depressions?

Question No.of Responses

 Yes 81
No 19
Total 100

Interpretation:
As per data collected, the maximum number of responses are yes. Among 100
responses, 81 responses are yes and 19 responses are no hence many responses are
agreed that the role of cryptocurrencies invigorate world economies or will create
more frequent economic fluctuations.

19. Will it End up supplanting all national currencies?

Question No.of Responses

Yes 66
 No 34
Total 100

Interpretation:
As per data collected, the maximum number of responses are yes. Among 100
responses, 66 responses are yes and 34 responses are no hence many responses are
agreed that the role of cryptocurrencies will end up supplanting all national/traditional
currencies.

5. FINDINGS

● It is found by the research that respondents are aware about cryptocurrency.

● Majority of respondents considered cryptocurrencies as the new financial plans for

investments.
 ● It is found that the working of cryptocurrency is different as compared to other
financial instruments.

● It is very safe as they are secured by cryptography codes so there are less chances of
hacking or unauthorised data disclosure.

● It is found that the two main elements of cryptography applied to cryptocurrencies

are hashing and digital signatures.

● It is a blockchain based platform that is meant to be completely decentralised.

● It is found that in future cryptocurrencies will be used as a part of everyone in

day-to-day life.

● As it matures with time crypto will receive worldwide acceptance just like other
financial instruments.

6. CONCLUSION:

There is a need for research and study in many areas for entering the world of
digital money. Prior to conducting the necessary research in this area, entering the
cryptocurrency market seems unreasonable. Research on the opportunities and
limitations, threats and strengths of cryptocurrency is essential. The present study
showed that no significant research has been done in this regard. With the introduction of
new technologies into the daily lives of humans, they are not averse to the use of
digital money and cryptocurrency. This is the future of the economy and money in the
world. Therefore, we must try to enter the world of the future with the necessary
knowledge. The best thing to do in this situation is to raise people's awareness and
knowledge of the face of the new generation of money. From the study of published articles
in the field of cryptocurrency.

As crypto matures, we will achieve a lot of stability which will make it easily transferable,
and a store of value that will make it more used by businesses, the government, and everyone
as a part of everyday life.
Cryptocurrency is still in its early stages and some people are still skeptical about it but it is
here to stay and has been adapted into our lives and will be a currency used by everyone
which is only a matter of time. With the acceptance and how widely talked about it is, the
future of crypto is sure to be bright.

BIBLIOGRAPHY:

INTRODUCTION:
● https://growwn.in/p/crptocurrency/
● https://byjus.com/current-affairs/cryptocurrency/
● https://techcabal.com/2021/07/16/origin-of-cryptocurrency/
 ● https://kitetoken.medium.com/features-of-cryptocurrency-55802435511e
● https://honestproscons.com/advantages-and-disadvantages-of-cryptocurrency/#:~:text
=Advantages%20of%20Cryptocurrency%201%20No%20Restrictions%20on%20Pay
ment.,to%20the%20normal%20banking%20system.%207%20No%20Inflation
● https://www.zenledger.io/blog/different-types-of-cryptocurrency
● https://www.bing.com/search?q=how+does+crypto+works+with+blockchain+technol
ogy&qs=n&form=QBRE&sp=-1&pq=how+does+crypto+works+with+blockchain+te
chnology&sc=1-48&sk=&cvid=86892804B73549D4B1EE5B01B9373457
● https://www.analyticsinsight.net/top-10-cryptocurrency-trends-in-2021-everyone-shou
ld-know/
● https://www.fintechfutures.com/2019/10/cryptocurrency-in-2025-what-does-the-futur
e-hold-for-digital-money/

Literature review

● http://hdl.handle.net/10603/257334

ANNEXURE

1. Name *

2. Age Group *
 20-30

31-40

41 & Above.

3. Gender *

Male

Female

Other

4. In which sector do you work? *

Private Sector

Public Sector

Self-Employed

5. Do you know about cryptocurrency? *

Yes

No

6. Why do people want an alternative currency and specifically cryptocurrencies

like bitcoins? *

Distrust of the current financial system

Get rich quickly

New financial plans

Low cost border payment

7. Where do you prefer to invest your money? *

 Bank

Gold

Mutual funds

Cryptocurrency

Others

8. In your opinion, which cryptocurrency provides the best investment opportunity?

Ethereum

Bitcoins

Ripple

Dash

ZCash/Monero

9. Do you think Bitcoin's market cap will be surpassed by another cryptocurrency? *

Yes

No

It's possible, But it's too early to tell.

10. In your opinion, which cryptocurrency has or will be likely gain, the most abroad
acceptance for use in making payments for goods and services ? *

Ethereum

Bitcoin

Ripple

ZCash/Monero

Dash

Others
11. Are you willing to take on legal risk in pursuing your investment in
cryptocurrency or your development of a cryptocurrency business as disrupters
have done in other industries? *

Yes

No

12. According to your opinion, sovereign or central banks should create their own
cryptocurrencies? *

Yes

No

13. Investors should be allowed to invest in Exchange Trade Funds (ETFs) holding
cryptocurrencies? *

Yes

No

14. Could you please indicate the level of risk in managing the private key
management, cryptography vulnerability and inability to remove content? *

No Risk

Low Risk

Medium Risk

High Risk

15. What kind of cryptocurrency validation method do you think has the greatest
long-term sustainability? *

Validation transaction via mining

Validation transaction via holding certain number of coins

 Validation transaction via your identity or reputation

Others

16. Do you think the industry should develop common voluntary standard? *

Yes

No

17. Will the role of traditional financial system decline due to the development of
cryptocurrencies? *

Agree

Disagree

18. What should be added value or consumer to cryptocurrencies over current

digital mean of payment ? *

Volatile investment

Fast development

Secure transaction

Decentralization

19. Will cryptocurrencies invigorate world economies or create more frequent

economic fluctuations and depressions? *

Yes

No
20. Will it End up supplanting all national currencies? *

Yes

No