1

A Report on

“ CRYPTOCURRENCY: A NEW DIMENSION IN WORLD ECONOMY ‘’

At
Nneell’s Finance ltd.

A Project Report Presented To

Krutik Patel
&
Dr. Nehal Joshipura

Durgadevi Saraf Institute of Management Studies, Mumbai

On
25th June 2022
In
Partial Fulfilment of the academic requirements for the
Master of Management Studies (MMS)
By
Rahul Vinchurkar
20211150
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STUDENT DECLARATION

This is to declare that the study presented by me to Durgadevi Saraf Institute of Management Studies, in
partial completion of the MMS under the title “CRYPTOCURRENCY: A NEW DIMENSION IN WORLD
ECONOMY” had been done under the guidance of Dr. Nehal Joshipura & Mr. Krutik Patel during
May/June/July 2022.

Place :- Mumbai Student Signature

Date :- Roll no.:- 20211150

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CERTIFICATE—FACULTY MENTOR

Certified that the project titled "CRYPTOCURRENCY: A NEW DIMENSION IN WORLD ECONOMY”
presented by Rahul Vinchurkar 20211150 represents his original work which was carried out by him at the
Durgadevi Saraf Institute of Management Studies under my guidance and Supervision during the period
from May 2022 to July 2022.

Name of Guide :- Dr. Nehal Joshipura

Signature of Faculty Guide :-
Date :-
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ACKNOWLEDGEMENT

I wish to express my deep sense of gratitude to Nneell’s Finance Ltd. and in particular Mr. Krutik Patel for
the timely guidance, inspiration and encouragement in the conduct of my Summer Internship Project work. I
would also like to thank the entire team for constantly supporting me throughout the summer internship and
other Officials in the Industry for all their valuable assistance.
I take this opportunity to thank my faculty mentor Prof. Nehal Joshipura for her able guidance and valuable
suggestions, which helped me in completing the project work, in time .I take immense pleasure in thanking
Dr. C. Babu, Director, Durgadevi Saraf Institute of Management Studies, for having permitted me to carry
out this project work.
I would thank my dear parents with all the gratitude and respect for their constant and impeccable support
throughout the summer internship course. Also for having faith in me to achieve the much needed
experience.
It is my pleasure to be indebted to various people, who directly or indirectly contributed in the development
of this project and who influenced my thinking, behaviour and acts during the summer internship period.

Rahul Vinchurkar
MMS ( Finance )
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CONTENTS

Executive Summary 07

CHAPTER 1: ABOUT Nneell’s Invest ltd.

CHAPTER 2: INTRODUCTION OF CRYPTO

2.1 Introduction 09
 Mining of cryptocurrency 10
 Blockchain technology 11
2.2 Different types of Cryptocurrency 12

CHAPTER 3: METHODOLOGY
3.1 Methodology 15
3.2 Scope and Objective of project 16

CHAPTER 4: ALL ABOUT BITCOIN

4.1 Basic of bitcoin 17
4.2 Bitcoin’s price History 18
4.3 Factors influencing Bitcoin Price 22

CHAPTER 5: THE COMPETITION

5.1 Bitcoin vs Gold 25
5.2 competitor of Bitcoin: Ethereum 27
5.3 Crypto vs Economy 28

CHAPTER 6: CRYPTO ANALYSIS

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6.1 SWOT Analysis 32

6.2 Regulations on Crypto around the World 35
6.3 Use of Cryptocurrency 41
6.4 Future of cryptocurrency in India 43

CHAPTER 7: CONCLUSION
7.1 Key Findings 44
7.2 Conclusion and Recommendation 45

Bibliography 46
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EXECUTIVE SUMMARY

The term cryptocurrency in recent times is one the most buzzing terminology all over the world. As the
cryptocurrency market is growing in a rapid speed all over the growth of the market is so rapid that in the
year 2018 the market capitalisation of crypto currency market was $100 billions to a market capitalization of
$3 trillions in the year 2021 end. This growth of the market has got the attention of almost all the big and
small investors and this created a worry for the big banks and institutions all over the world. The internships
of six weeks long summer internship program was successfully completed in the Nneell’s Invest ltd. Under
finance from 10th may to 3rd July as an equity rea research and analyst as the knowledge and method of
research which I got from my company head he was very helpful in preparation of this report.
The report is all about the new type of investment crypto currency also known as digital asset. Hello it is all
about the use of cryptocurrency the investment in cryptocurrency hello and how the world and big banks and
institutions are you reacting to this type of investment in crypto. the main objective of this report is to create
awareness about crypto and digital asset also how secure, safe and trustworthy it is in the investing your
money in crypto. this report also help in to know the potential, reliability it provides to bigger firms.
In this report readers can understand that when it comes to university investing in crypto currency how does
market moves like a roller coaster everyday from top of the mountain to the bottom of the sea and vice
versa. this report also make aware about the government intervention and rules regulations are being made
regulate this market and how successful they are in doing this regulation. this report also show you how the
investment in crypto currency is challenging the world economy. In this report an analysis about the price
fluctuation this market shows everyday and how much it has affected the life of the investors all over the
world. This report also discuss about the future of this market.
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CHAPTER 1 : ABOUT Nneell’s Invest Ltd.

Company name : Nneell’s invest

Company type : private

Location : Mumbai

NNEELL INVEST is a financial consultancy firm that aims to provide financial consulting to new investors
and traders. Along with consultancy, it also provide financial education to bring more investors into the
market. Nneell's Invest deals into Portfolio Management Services, Equity Advisory Services, Consultancy
Services, Financial Planning, Forex Trading, Equity Trading, Algo Trading and Financial Academy.
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CHAPTER 1: INTRODUCTION OF CRYPTO

1.1 INTRODUCTION

A cryptocurrency is an encrypted data string that denotes a unit of currency. It is monitored and organized
by a peer-to-peer network called a blockchain, which also serves as a secure ledger of transactions, e.g.,
buying, selling, and transferring. Unlike physical money, cryptocurrencies are decentralized, which means
they are not issued by governments or other financial institutions. Individual coin ownership records are
stored in a digital ledger, which is a computerized database using strong cryptography to secure transaction
records, to control the creation of additional coins, and to verify the transfer of coin ownership. Despite their
name, cryptocurrencies are not considered to be currencies in the traditional sense and while varying
treatments have been applied to them, including classification as commodities, securities, as well as
currencies, cryptocurrencies are generally viewed as a distinct asset class in practice

In 2009, the first decentralized cryptocurrency, Bitcoin, was created by presumably pseudonyms developer
Satoshi Nakamoto. Soon after, in October 2011, Litecoin was released which used crypt as its hash function
instead of SHA-256. Another notable cryptocurrency, peercoin, used a proof-of-work/proof of stake hybrid.
And after that many other coins were created in the world of cryptocurrency. Today more than 10000
different crypto coins exist in the marketplace out of which 70 have a market capitalisation over 1 billion
dollars.

In June 2021, El Salvador became the first country to accept Bitcoin as legal tender, after the legislative
assembly had voted 62–22 to pass a bill submitted by President Nayib Bukele classifying the cryptocurrency
as such. In August 2021, Cuba followed with Resolution 215 to recognize and regulate cryptocurrencies
such as Bitcoin. In September 2021, the government of China, the single largest market for cryptocurrency,
declared all cryptocurrency transactions illegal, completing a crackdown on cryptocurrency that had
previously banned the operation of intermediaries and miners within China. As China had the second largest
investors on cryptocurrency the decision of banning crypto over the nation affected the crypto market for a
period of time. (Polansek 2016)
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MINING OF CRYPTO

Cryptocurrencies are developed (and protected) by cryptographic algorithms that are stored and validated by
a process called mining, in which a computer network or specialized computer systems such as application-
specific integrated circuits (ASICs) also validate transactions. This process encourages miners who use the
network with cryptocurrency.

In cryptocurrency networks, mining is a transaction guarantee. In this effort, successful miners receive a
new cryptocurrency as a reward. The award reduces labour costs by creating a coherent motivation to
contribute to network processing capacity. With more and more people coming to the world of virtual
currency, producing hashes to ensure it has become more and more difficult over time, forcing miners to
invest huge and growing investments to improve computer performance. As a result, the hassle of obtaining
hash is reduced and generally does not justify investment in equipment and cooling facilities (to reduce heat
generated by equipment), as well as the electricity needed to operate them.

Since February 2018, the Chinese government has stopped trading in real money, closed its first coin supply
and closed mines. Many Chinese miners have migrated to Canada and Texas. As of July 2019, Bitcoin's
electricity consumption was estimated at 7 gigawatts, about 0.2% of the global total, or equivalent to the
energy used nationwide by Switzerland.

People who love cryptocurrency mining can own and use a mining machine or buy a hash rating from a
foreign company, also known as cloud mining. Managing and operating a mining machine comes with pre-
existing hardware costs and continuous operating costs such as electricity. However, it offers more control
and benefits to miners. By comparison, mining in the cloud does not require prior investment and gives
miners the flexibility to invest what they can afford. In any case, new miners need some form of
cryptocurrency mining software to participate. (taylor 2017)

BLOCK CHAIN TECHNOLOGY

Blockchain is a distributed site that is shared between computer network nodes. Like a website, blockchain
stores information electronically in a digital format. Blockchains are best known for their important role in
cryptocurrency systems, such as Bitcoin, by keeping a secure and separate record of transactions. The
innovation of blockchain is that it ensures the integrity and security of the data record and creates trust
without the need for a trusted third party.

Blockchain forms the basis of cryptocurrencies like Bitcoin. The U.S. dollar is controlled by the Federal
Reserve. Under this system of central authority, user data and money technically at the discretion of their
bank or government. If a user bank is hacked, client's confidential information is at risk. If a customer bank
collapses or a client lives in a country with a weak government, its value may be put at risk. In 2008, several
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failed banks received bail-partially using taxpayers' money. These are the problems with which Bitcoin was
started and developed.

By distributing its functions over a computer network, the blockchain allows Bitcoin and other
cryptocurrencies to operate without the need for central authority. This not only reduces risk but also
eliminates many of the processing and processing costs. It may also provide those in developing countries
with financial instability or financial infrastructure a stable currency with additional applications and a wider
network of individuals and institutions with which to do business, internally and externally.

Using cryptocurrency wallets in savings accounts or as a payment method is very deep for those who do not
have a national identifier. Some countries may be embroiled in warfare or have governments that do not
have the actual infrastructure to provide ownership. Citizens of such lands may not be able to afford savings
or brokerage accounts — and, as a result, there is no way to secure their wealth. (Hayes 2022)

1.2 DIFEERENT TYPES OF CRYPTOCURRENCY

1) Utility tokens
The tokens used are thought of as coupons or vouchers but in fact digital units represent the value in the
blockchain. In other words, a token provides certain access to a product or service that is operated or
operated by a token issuer. A person can obtain access by purchasing a token and may redeem it at a
specified cost of accessing the product or service.
• The owner acquires a product or service right in the same amount of token but not ownership. For example,
they can access a product or service with discounted or free payments as long as they have tokens.
• In some jurisdictions, the definition of a cryptocurrency as a benefit token means that it is not subject to
any financial law.
• A key understanding is that they are not investment products and can lose value entirely at the owner’s
expense.
• The tokens used are better understood from a control perspective because they are not thought to be
regulated. The token holder does not own the equivalent of a stock or bond or other asset that is controlled
under financial transactions.
• Applications include access to partitioned storage on a shared storage network, reward tokens, and
blockchain currency.
Examples of usage tokens: Funfair, Basic Attention Token, Sirin Labs Token, and Golem.

2) Security Tokens
These secure cryptocurrencies receive value from foreign assets that can be traded under financial regulation
as collateral. Therefore, they are used to make secure tokens for buildings, bonds, stocks, real estate, real
estate, and other real world currencies.
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• Therefore, due to the nature of the transactions, your transactions, transactions, transactions, amounts,
token making, support, and trading should be regulated and regulated by financial regulators to protect user
investment.
• Regulation, in such a case, exists to secure user funds and investments and to hold the founders
accountable.
• Asset-backed tokens: These are backed by real estate, art, carbon credits, or assets as value. They carry
elements of gold, silver, oil, etc. They can trade, etc.
Examples of security tokens: Sia Funds, Bcap (Blockchain Capital), and Science Blockchain.

3) Payment tokens
As the name suggests, payment tokens are those used to buy and sell goods and services on digital platforms
without a mediator, as is the case in traditional financial institutions and banking forums. Of course, most
cryptocurrencies and tokens fall into this category, whether for security or assistance. However, not all
utility tokens can be payment tokens.
• Especially a combination of other tokens.
• Payment tokens are not representative and cannot be invested in securities. Therefore, they do not fall
under monetary policy as securities.
• They may not guarantee or guarantee the owners' access to any product or service now or in the future.
Examples of payment tokens: Monero, Ethereum, and Bitcoin.

4) Exchange Tokens
There may be a debate about what exchange tokens are but they are given a name to be issued and used in
cryptocurrency trading, which is a crypto market for buying and selling and exchanging tokens. Although
they could be used outside of their traditional exchanges, we used them to facilitate exchanges between other
tokens or as gas payments in these negotiations.
• Intermediate trading with split or non-shared platforms or blockchains.
• They can be used to pay for cheap gas or cost payments, promotions, offer free discounts, blockchain
controls, for example, voting rights, or provide access to certain crypto exchange services.
• To increase revenue, trade uses to attract people to participate in projects.
Examples of exchange tokens: Binance Coin or BNB token, Gemini USD, FTX Coin FTX Exchange,
KuCoin Token, Uni token, HT for Huobi exchange, Shushi, and CRO of Crypto.com.

5) non-fungible tokens
A non-removable token is a digital certificate of ownership of a unique, non-refundable or non-exchangeable
item, as well as one-of-a-kind assets in a blockchain.
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It is developed using the same technology used to create other types of tokens but mainly used to represent
artwork, photos, videos, audio, collections, houses, visual worlds, memes, GIFs, digital content such as posts
and tweets, fashion. , music, artwork, sketches, pornography, school, politics, film, memes, sports, games, or
digital files of value but in blockchain.
• The first NFT was created in 2015 on the Ethereum blockchain.
• The digital signature is structured in such a way that it cannot be replaced.
• Allows the holder to own the original item for a limited, real, or edition.
• Due to the high cost, problems may be limited or may not be reproduced or copied. The best NFTs are
those where only one or a few people can be real.
• Helps artists, creators, and collectors, in particular, sell their products.
• Can be purchased and sold at NFT markets such as OpenSea, Rarible, Foundation, and Decentraland.
• The application includes fame, monetization, royalty payments so that artists will receive a percentage of
sales whenever the art is sold to a new user, partial ownership of land and expensive goods, auction to raise
money and cash like Charmin and Taco. Auction for NFT themes with themes, creating unique moments of
memory or saving records, with market incentives such as trading, and celebrity releases.
Examples of NFTs: Video clips of Logan Paul, Twitter tweets by Jack Dorsey founder NFT, EVERYDAYS:
The First 5000 Drawings by Mike Winklemann, better known as “Beeple”, and crypto kitties several.

6) DeFi Tokens or Decentralised Financial Tokens

Specified financing refers to financial apps or dApps built on a blockchain or distributed book, which makes
them distributed as well as those that provide financial and financial control directly to the user while
allowing them to trade on a global scale with peers depending on peers and global reach. markets.
These DeFi apps are accessible to anyone with an internet connection. Each DeFi application is enabled for
the token economy after which there is a native token. These tokens are a form of cash register where
developers can organize the mind into payments and cash flow.
• Most DeFi tokens are currently based on the Ethereum blockchain. Other DeFi-supported blockchains
include Stellar, Polygon, IOTA, Tron, and Cardano.
• With these tokens, people can earn, borrow, borrow, long / short term, earn interest, save, grow and
manage a portfolio, buy insurance, invest in collateral, invest in stocks, invest in wallets, send and earn cash,
trade. value in divided real estate, invest and buy goods, sell goods, and more.
• Examples of financial tokens divided into popular areas include Solana, Chain link, Uniswap, Polkadot,
Aave, and many more. Other categories of DeFi applications include country-divided lending applications,
shared international exchanges, extended storage sharing, etc.
• The most powerful feature of DeFi tokens is smart contracts, which allow anyone to interpret, write, edit,
and apply rules based on specific circumstances and perform tasks where those conditions are met.
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7) Stable Coins - Fiat And Other Types

As the name suggests, these are tokens of a fixed value in nature in that their value can be somehow
predicted in the sense that they are almost always the same. Stable tokens or stable coins as they are
commonly called, are backed by stable or equally valuable assets such as fiat. We therefore have a stable
dollar and Euro supported by stable currencies, gold and other precious metals, oil, and commodity-backed
tokens.
• Stable tokens help the world get rid of commodities or other digital currencies.
• They are supported at a fixed rate and the supporting assets must be kept in the palace at the prescribed
rate. We have those supported by fiat, crypto, commodity, and stable algorithmic currencies that use
software and rules to maintain a stable anchor with fiat or other assets.
Examples of stable currencies: Tether, based on a 1: 1 ratio and USD fiat, similar to TruSD, Gemi Dollar,
and USD Coin, and Paxos. Kitco Gold, Tether Gold (XAUT), DigixGlobal (DGX), and Gold Coin (GLC)
also operate as stable gold-backed coins. Algorithmic-supported stable currencies include Ampleforth
(AMPL), DefiDollar (USDC).

8) Privacy tokens
As the name suggests, these cryptocurrencies are used for privacy applications because their code promotes
better privacy than Bitcoin and conventional crypto. There are many reasons why a person may need better
privacy in crypto trading - firstly such as privacy, security investigations, and more sensitive activities, even
though it is also used for crimes and scams.
• These cryptocurrencies incorporate a variety of methods to ensure the privacy of transactions, e.g. mixing
coin, anonymous strategies like CoinJoin, and offline purchases. This is more than just the techniques used
in common crypto e.g. lack of integration of real-world names with crypto addresses and blockchain
encryption.
Examples of privacy tokens: Monero, Zcash, Dash, Beam, and Verge. (Adam mile 2022)
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CHAPTER 2 : METHODOLOGY

2.1 METHODOLOGY

The goal is to review the existing literature on the cryptocurrency adaptation and investigate the existing
adaptation level and try to classify and provide in depth analysis of the factors influencing the adaptation
decision’s. the source you see in this research are Academy references as well as essential information and
data extracted from high quality website, online news, articles, magazine journals and blogs. For this project
secondary data collection will be used the project choose by me is quite vast and new and a lot of sources are
available to gather information from international news sources.
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2.2 SCOPE AND OBJECTIVE OF THE REPORT

 To understand the concept of cryptocurrency and Bitcoin and its use and function.

 To analyse and understand the risk and opportunities of investing into cryptocurrency and digital
assets.
 To understand the legality and restrictions put by the Government of India and all over the world on
this investment in crypto.

 To understand the problem and challenges the world economy facing with respect to cryptocurrency.

 To analyse and understand future and growth of the crypto in India and all over the world.
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CHAPTER 3 : ALL ABOUT BITCOIN

3.1 BASIC OF BITCOIN

Bitcoin is a digital currency which operates free of any control or the oversight of banks or governments.
Instead it relies on peer-to-peer software and cryptography.

A public ledger records all bitcoin transactions and copies are held on servers around the world. Anyone
with a spare computer can set up one of these servers, known as a node. Consensus on who owns which
coins is reached cryptographically across these nodes rather than relying on a central source of trust like a
bank.

Every transaction is publicly broadcast to the network and shared from node to node. Every ten minutes or
so these transactions are collected together by miners into a group called a block and added permanently to
the blockchain. This is the definitive account book of bitcoin. Bitcoins can currently be subdivided by seven
decimal places: a thousandth of a bitcoin is known as a milli and a hundred millionth of a bitcoin is known
as a Satoshi .

Can bitcoin be converted to cash?

Bitcoin can be exchanged for cash just like any asset. There are numerous cryptocurrency exchanges online
where people can do this but transactions can also be carried out in person or over any communication
platform, allowing even small businesses to accept bitcoin. There is no official mechanism built into bitcoin
to convert to another currency.

What is the purpose of bitcoin?

Bitcoin was created as a way for people to send money over the internet. The digital currency was intended
to provide an alternative payment system that would operate free of central control but otherwise be used
just like traditional currencies. (Sparkes 2021)
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3.2 Bitcoin's Price History

Among asset classes, Bitcoin has had one of the more volatile trading histories. The cryptocurrency’s first
significant price increase occurred in 2010 when the value of a single bitcoin jumped from just a fraction of
a penny to $0.09 to a all time high of $68,991. The cryptocurrency has undergone several rallies and crashes
since it became available.

The price changes for Bitcoin alternately reflect investor enthusiasm and dissatisfaction with its
promise .Satoshi Nakamoto, the anonymous Bitcoin inventor(s), designed it for use in daily transactions and
as a way to circumvent traditional banking infrastructure after the 2008 financial collapse.

The cryptocurrency gained mainstream traction as a means of exchange and attracted traders who began to
bet against its price changes. Investors turned to it as a way to store value, generate wealth, and hedge
against inflation; institutions worked to create Bitcoin investment instruments.

Bitcoin price fluctuations primarily stemmed from investors and traders betting on an ever-increasing price
without much grounding other than anticipation of riches. But Bitcoin's price story has again changed. In
January 2022, Bitcoin began losing stream.
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2009–2015

Bitcoin had a price of zero when it was introduced in 2009. On July 17, 2010, its price jumped to $0.09.
Bitcoin's price rose again on April 13, 2011, from $1 to a peak of $29.60 by June 7 th , 2011, a gain of
2,960% within three months. A sharp recession in cryptocurrency markets followed, and Bitcoin's price
bottomed out at $2.05 by mid-November. The following year, its price rose from $4.85 on May 9th to $13.50
by Aug 15th .

2012 proved to be a generally uneventful year for Bitcoin, but 2013 witnessed strong gains in price. It began
the year trading at $13.28 and reached $230 on April 8; an equally rapid deceleration in its price followed,
bringing its price down to $68.50 a few weeks later on July 4th .

In early October, Bitcoin was trading at $123.00; by December, it had spiked to $1,237.55 and fell to
$687.02 three days later. Bitcoin's prices slumped through 2014 and touched $315.21 at the start of 2015.
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2016–2020

Prices slowly climbed through 2016 to over $900 by the end of the year. In 2017, Bitcoin's price hovered
around $1,000 until it broke $2,000 in mid-May and then skyrocketed to $19,345.49 on Dec 15th.
Mainstream investors, governments, economists, and scientists took notice, and other entities began
developing cryptocurrencies to compete with Bitcoin.

Bitcoin's price moved sideways for the next two years with small bursts of activity. For example, there was a
resurgence in price and trading volume in June 2019, with prices surpassing $10,000. However, it fell to
$6,635.84 by mid-December.

In 2020 the economy shut down due to the COIVD-19 pandemic—Bitcoin's price burst into activity once
again. The cryptocurrency started the year at $6,965.72. The pandemic shutdown and subsequent
government policies fed investors' fears about the global economy and accelerated Bitcoin's rise. At close on
Nov. 23, Bitcoin was trading for $19,157.16. Bitcoin's price reached just under $29,000 in December 2020,
increasing 416% from the start of that year.

2021–Present

Bitcoin took less than a month in 2021 to smash its 2020 price record, surpassing $40,000 by Jan. 7, 2021.
By mid-April, Bitcoin prices reached new all-time highs of over $60,000 as Coinbase, a cryptocurrency
exchange, went public. Institutional interest further propelled its price upward, and Bitcoin reached a peak of
$63,558 on April 12, 2021.

By the summer of 2021, prices were down by 50%, hitting $29,796 on July 19. Autumn saw another bull run
in September, with prices scraping $52,693, but a large drawdown took it to a closing price of $40,710 about
two weeks later.

On Nov. 10, 2021, Bitcoin again reached an all-time high, $68,789 before closing at $64,995. In mid
December 2021, Bitcoin fell to $46,164 before fluctuating more as uncertainty about inflation continued to
spook investors alongside the emergence of a new variant of COVID-19, Omicron.

Between January and May 2022, Bitcoin's price continued to gradually decline, with closing prices only
reaching as high $47,445 by the end of March before falling further to $28,305 on May 11, its first time
closing under $30,000 since July 2021. On June 13, crypto prices plunged with Bitcoin dropping below
$23,000 for the first time since December 2020. (Edwards 2022)
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3.3 Which Factors Influence Current Bitcoin Price

Bitcoin is not issued by a central bank or backed by a government; therefore, the monetary policy tools,
inflation rates, and economic growth measurements that typically influence the value of a currency do not
apply to Bitcoin. Bitcoin acts as more of a commodity being used to store value, so the following factors
influence its price.

 The supply of Bitcoin and the market’s demand for it

 The cost of producing a bitcoin through the mining process
 The number of competing cryptocurrencies
 Regulations governing its sale and use
 Media and news

1.The Results of the Bitcoin Value Provision

The supply of goods plays an important role in determining their value. Rare goods may have higher prices,
and those that are more common may have lower prices. Bitcoin offers are often well-publicized, as there
will be only 21 million produced and only a certain amount created per year. Its protocol only allows new
bitcoins to be created at a fixed rate, and that level is designed to slow down over time.
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So the future supply of Bitcoin is declining, which adds to the demand. This is similar to the reduction of
corn if the harvest could be reduced every four years until harvest, and it was publicly announced that it
would happen — the price of corn would increase.

2.The Price of Bitcoin and Demand

Bitcoin has attracted the attention of retailers and stores, the growing demand driven by the increasing media
coverage and the investment of "experts" and business owners who raise the value of Bitcoin they will have.
Bitcoin is very popular in countries with high inflation and declining currencies, such as Venezuela.
Additionally, it is popular with those who use it to transfer large sums of money to illegal and illegal
activities.
This means that the decline in future supply is accompanied by an increase in demand to accelerate the rise
in bitcoin prices. However, its price is still fluctuating in the changing times of boom and buses. For
example, the rise in Bitcoin prices in 2017 was followed by a long-term decline, followed by two sharp
increases and a decrease in the rate by 2021.1

3. Production Costs and Price of Bitcoin

Like other commodities, production costs play an important role in determining the price of bitcoin.
According to one study, the price of bitcoin in crypto markets is closely related to its low production costs.
In Bitcoin, production costs are probably the sum of the fixed fixed cost of infrastructure and electricity
required to unlock the secret and indirect costs associated with the complexity level of its algorithm. The
Bitcoin mines contain a network of miners competing to solve a fixed number — the first miner to do so
wins the prize for newly made bitcoins and any operating funds collected since the last block was acquired.
Resolving a hash to open a block and earn a reward requires vicious power in the form of great processing
power. Financially, the miner will have to buy more expensive digging equipment. The bitcoin mining
process also requires expensive electricity bills. By standards, the electricity consumption of the bitcoin-
mining network is equivalent to more than other small countries.
4. How Competition Affects The Price Of Bitcoin
Although Bitcoin is a well-known cryptocurrency, hundreds of other tokens are fighting for investment
dollars. Since 2022, Bitcoin has dominated trading in cryptocurrency markets.4 But its dominance has
diminished over time. In 2017, Bitcoin accounted for more than 80% of the total market capitalization of
cryptocurrency markets. By 2022, that share has dropped to less than 50%.
The main reason for this was an increase in awareness and ability in other currencies. For example,
Ethereum has emerged as a fearsome competitor to Bitcoin due to a boom in Decentralized Finance (DeFi).
Investors who see their potential in rebuilding modern financial infrastructure have invested in ether (ETH),
a cryptocurrency used as “gas” in trading on its network. Ethereum accounts for about 20% of the total
market capitalization of cryptocurrency markets.
Some cryptocurrencies continue to be introduced and grow in popularity. Tether, BNB, USDCoin, and
Solana are just a few other coins that take the market volume away from Bitcoin. Although they have taken
investment dollars in the Bitcoin ecosystem, competition has attracted investors to Bitcoin. As a result, the
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demand and awareness about cryptocurrencies has increased. As a general manager of the cryptocurrency
ecosystem, Bitcoin has gained attention, and its prices remain high.

5. The Price of Bitcoin and Media

In an effort to keep investors and stakeholders informed, the media and the media work both and against the
price of Bitcoin. Any changes to any of the aforementioned features are immediately published and
distributed to more people. As a result, good news for cryptocurrency investors often sends the value of
Bitcoin higher, while bad news sends it down.
The combination of supply, demand, production costs, competition, regulatory development, and subsequent
media distribution influence the perception of investors, which is one of the most important factors affecting
cryptocurrency prices. (Bloomenthal 2022)
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CHAPTER 4 : THE COMPITETION

4.1 BITCOIN VS WORLD ECONOMY

The price of Bitcoin has jumped almost eight-fold since March to $40,000, and enthusiasts say it’s headed to
$100,000. People rightly don’t trust governments to manage their currencies. But this segment of what’s
ahead cautions that Bitcoin and other cryptocurrencies are not yet substitutes for the dollar. 

Bitcoin is way too volatile to be used as money. Imagine if you had taken out a mortgage worth $250,000 in
Bitcoin last March; you’d owe the bank $2 million today.

The supply of money must expand to meet the needs of a growing economy. But the maximum amount of
Bitcoin that can be “mined” is fixed. 

For cryptocurrencies to seriously challenge the dollar and other government-made money, they must be
fixed in value—preferably tied to gold or to the Swiss franc—and the supply of them must be able to grow
as economies grow. (forbes 2021)

The Swiss Franc (CHF) is worth 18,826,374 BTC in market cap at the time of writing, a little less than
Bitcoin.

At the time of writing, Bitcoin has surpassed the Swiss Franc (CHF) in market capitalization as the world’s
thirteenth largest currency, according to data from Fiatmarketcap.com .There are only 12 world currencies
left for Bitcoin to overcome.

Fiatmarketcap.com takes a Bitcoin standard approach to analyse currencies. It measures the world’s biggest
currencies in terms of market capitalization as priced in BTC, the best form of money ever created but still
lagging in perception.

The website also uses BTC as a measuring stick for countries’ gross domestic product (GDP), which puts
Bitcoin at eighteenth place.

As the world starts recognizing the superiority of BTC in nearly all aspects of a good money, namely
durability, portability, verifiability, divisibility, and scarcity. As time progresses and bitcoin adoption
 26

increases, it is set to have a more well-established history of success, which confers upon it a greater appeal
for usage. (nacomics 2021)

Economic Impact of Cryptocurrencies 

If we want to talk about the impact of cryptocurrencies on the economy, we can say that, although the
transaction volumes and market values of cryptocurrencies are increasing, we cannot say that they have
much effect on monetary policies since their use is still at very low levels. In order for cryptocurrencies to
reach the volume that will affect the financial markets, they must be a substitute for the official currency.
However, one country already adopted cryptocurrency as its currency form. El Salvador is the first country
to allow cryptocurrency to use as a transaction item. People in El Salvador can buy anything by using
Bitcoin. But other countries could not legislate a regulation on cryptocurrencies, they are neutral because
cryptocurrencies’ usage varies state by state.

The housing and real estate sector is another area where cryptocurrencies are being used the most. With the
increase in the number of companies that accept payments with cryptocurrencies, it is thought that
investments in this area will increase.

Retail is also one of the important sectors showing interest in cryptocurrency technology. The first example
in this regard started with the website Overstock.com, which provides services in the field of furniture, by
accepting Bitcoin. After this, many retail sales portals, including large retailers such as Crate and Barrel,
Nordstrom and Whole Foods, also offer the opportunity to shop with cryptocurrency. 

Lastly, cryptocurrency has created new possibilities for game publishers and developers. Some online games
have already started trading cryptocurrencies, and one of the best examples of this practice is Project Big
ORB, a game that allows you as a player to convert your in-game money into other assets, including
cryptocurrencies, and then exchange it for real money. (Ayavefe 2022)
 27

4.2 BITCOIN VS GOLD

The ratio in the chart above divides the price of Bitcoin by the price of Gold and represents the number of
ounces of Gold it takes to buy a single Bitcoin. When the ratio rises, Bitcoin is outperforming Gold - and
when it falls, Gold is outperforming Bitcoin. The chart's y-axis is logarithmic for better visualization and to
cope with Bitcoins parabolic advances over time. Both Gold and Bitcoin are often seen as a way to diversify
a portfolio as well as a hedge against inflation and fiat currency debasement.

Gold has dominated the economies and markets for thousands of years as a means of exchange and holding
wealth. Bitcoin was launched in 2009 and only achieved widespread recognition several years later. Other
key differences can provide clues into which one you might want to include in your portfolio.
 28

 Bitcoin Gold 
Regulations Depends on the country Some restrictions
Utility The number of uses is growing Used across many industries and products
Liquidity Depends on the market Depends on market and type of asset
Started 2021 at $32,222, rose to a high of Started 2021 at $1,943 an ounce, dropped to a
Volatility
$69,000, closed the year at $46,211. yearly low of $1,683, ended year at $1,805.

Regulation

Gold’s established system for trading, weighing, and tracking is pristine. It’s very hard to steal or fake; it's
also highly regulated. In many countries, you cannot cross borders while carrying gold without regulatory
permission.2 When investing in gold, you'll generally only be able to purchase it from registered dealers and
brokers; one caveat is that you should only buy physical gold if you can safely store it.

Bitcoin is also difficult to steal and fake, thanks to its encrypted and decentralized system. It is generally
legal to use across the borders of different countries, with a few exceptions. However, the regulatory
infrastructure that could exist to ensure that users are safe is not yet in place—the anonymous nature of
cryptocurrency also makes it challenging to regulate.

Utility

Gold has historically been used in many applications—currency, luxury items, specialized applications in
dentistry, electronics, and much more. This cross-functional utility has given gold its ability to maintain
value when other asset values fall.

Bitcoin is limited in its utility. It is currently only used as a digital currency and a speculative investment.
However, there is an emerging financial technology whose concept is to use cryptocurrency for financial
transactions called decentralized finance. Bitcoin has utility in this emerging tech as a form of lending,
borrowing, and possibly more. It also has the potential to be involved in nearly as many applications as gold
—but following the same line of thought, it has just as much potential to become useless and invaluable.

Liquidity

One primary concern for investors looking toward Bitcoin as a haven is its liquidity. Cryptocurrencies are
generally very liquid assets; however, this may not always be the case. There are times when it might be
more liquid than other assets and times when it isn't.

Volatility

Bitcoin has historically proven to be subject to the media effect, investor sentiment, regulatory actions, and
hype. News from the digital currency sphere could prompt investors to panic and make quick decisions,
quickly sending Bitcoin's price upward or downward. This volatility is not inherent to gold for the reasons
mentioned above, making it perhaps a safer asset.
 29

Whether Bitcoin is a better investment than gold boils down to your investment goals, whether you enjoy
speculating, your risk tolerance, and how much capital you can stand to lose if the market turns. A financial
advisor can help you create investing goals and decide whether Bitcoin is a good investment for you. (Reiff
2022)

4.3 The competitor of Bitcoin : Ethereum

Bitcoin and Ethereum are fundamentally different because the former was designed to enable decentralised
finance while the latter was designed to also enable apps and contracts. While Ethereum does enable
payments using its internal ETH cryptocurrency, its scope is much broader than Bitcoin’s – by design.

Both systems use blockchain technology to validate and record transactions, but a forthcoming change to the
way Ethereum works will mean the way in which they do it is different, with consequences for speed,
sustainability and accessibility. 
 30

The ratio in the chart above divides the price of Ether by the price of Bitcoin and represents the amount of
Bitcoin it takes to buy 1 Ether. When the ratio rises, Ether is outperforming Bitcoin - and when it falls, Ether
underperforming.

As of 2021, Ether is the second largest cryptocurrency by market capitalization after Bitcoin. It is the
currency of the Ethereum blockchain and is often referred to as the "fuel" of the decentralized applications
("dapps") that are running on the network.

Ethereum is the most popular blockchain for running smart contracts and dapps. In fact, as of August 2021,
116 out of the top 200 tokens (as measured by market capitalization) are located on the Ethereum
blockchain. They include stable coins, DeFi projects and tokens of decentralized exchanges.

In contrast to Bitcoin, which has a maximum total supply of 21 million BTC, there is an unlimited supply of
ETH with an annual limit of 18 million. New blocks are mined in the Bitcoin network approximately every
10 minutes, whereas on the Ethereum platform a new block is created about every 15 seconds.

The difference lies in what’s known as a ‘consensus mechanism’.

Bitcoin and Ethereum use different consensus mechanisms. Bitcoin’s is called proof of work while
Ethereum is moving towards a proof of stake consensus mechanism .

Decentralised payment vs Decentralised software

Bitcoin was developed to facilitate local payment, that is, to allow people to send and receive payments
without a bank-like mediator. Ethereum, on the other hand, was designed to do more than just send and
receive ETH.
 31

Using a blockchain, which provides a consistent transaction record, Ethereum was designed to simplify
software classified as smart contracts and distributed applications (dApps). A smart contract is a digital
agreement between two or more parties that will act on their own when certain conditions are met.
So while you may not say that Bitcoin is great, but Ethereum is fast, these two are not competing fiercely
because they are designed to do different things. BTC and ETH, on the other hand, are directly related.

Price fluctuations
BTC has certainly been more valuable than ETH, reaching $ 64,000 in November 2021. On the other hand
ETH reached almost $ 4,600 in the same month.
Despite the significant differences in their values, the two cryptocurrencies ’have historically shown strong
positive interactions with each other, trending between 0.7 and 0.8 most of the time (and 1.0 representing the
strongest possible correlations) according to the data of coinmetmetrics.io.
Regardless, and as with all cryptocurrencies, BTC and ETH are both unchanged. Prices are unpredictable
and often crash. (Hooson 2022)
 32

CHAPTER 5: CRYPTO ANALYSIS

5.1 SWOT Analysis of Bitcoin

Bitcoin strengths: cryptocurrency can’t be tracked or stolen.

Bitcoin uses blockchain (a peer-to-peer) network between the sender and the receiver. Only these two parties
are involved. It’s unlike any other method of transferring currency — which involves a third party, like a
bank. A middleman is prohibited from Bitcoin transactions.

And since that pesky third party doesn’t exist, it makes Bitcoin a tax-free currency. The government doesn’t
control or regulate Bitcoin.

For most Bitcoin users, this is an insane positive because it’s not folly to economic turmoil. Bitcoin’s worth
is agreed upon by the sender and the receiver. Not an institution. Even if the economy crashes, Bitcoin can
survive.
 33

Surprisingly, this isn’t why Bitcoin’s popularity skyrocketed within the last few years.

The real strength is secrecy.

Every person in the Blockchain network has a private wallet address. Trading Bitcoin is fully anonymous.
It’s 100 percent untraceable. Unless you decide to make your wallet address — but the majority of users
don’t. Because the anonymity makes your financial data fully hidden.

A unique PIN number assigned to each Bitcoin masks the identity of the seller. Once the Bitcoin is sold, the
PIN changes anew. At this point, only the buyer knows the PIN. It’s irreversible, unless the current owner
decides to change the ownership back.

Although this means nothing can be done once the Bitcoin is sent, it also means you can’t steal this
currency. You can steal your physical wallet. You can steal credit card info and hijack your online bank
account. But you can’t steal Bitcoin.

It’s because of this increased security that pushes people towards cryptocurrency.

Bitcoin weaknesses: crippling slow transactions and accessibility loss.

Bitcoin transactions aren’t as fast as they were a few years ago. This is one of the downsides of Blockchain:
the more people use it, the more Blockchain limits your transactions speeds.

Basically, the blocks get bigger the more it’s in use. Making the whole process clunky and slow. Until this
problem is resolved, it’s unlikely Bitcoin currency will usurp conventional credit card usage.

The system isn’t the only issue .

Don’t forget about the Bitcoin wallet password problem.  Since the transactions are encrypted, recovering a
lost password isn’t possible. You’d be surprised how often people forget their password and lose access to
their Bitcoins. In fact, one man bought a few Bitcoin years ago when it was dirt cheap. Now it’d be worth
millions… if only he could find his password to his wallet.

The value of Bitcoin has shifted relentlessly over the years. And despite the rocky nature, the media pushes
out stories claiming Bitcoin is the future of money.

It’s just like stocks, however; unpredictable and unreliable. Tomorrow, the value could skyrocket. The day
after, it may plummet. The reliability of this currency is too questionable to replace traditional money.

Bitcoin opportunities: Safety from compromising data breaches

As a society, we’re moving away from physical money in favour of cashless currencies. In fact, big names
like Amazon are already accepting Bitcoin as payment for their goods. If companies the size of Amazon are
recognizing Bitcoins’ viability, it’s safe to assume others will follow.
 34

And what about the growing hostility between the public and the banking institutions?

People are looking for safe, secure, and practical means to avoid using banks. Data breaches, involving
customer data, is consistently occurring with brands like Facebook and wells Fargo. How long until the
breaches steal credit card info?

No one wants to find out. And others are moving towards Bitcoin. Even with the hang-ups, it’s safe.
Anonymous. And doesn’t involve third parties.

And the opportunities don’t stop here.

The blockchain is a phenomenal technology with much promise. The blocks may be able to keep data like
criminal records, birth certificates, and public records private. It may pave the way for impenetrable
encryption. That’s something the masses are leaning towards for data protection.

Bitcoin threats: the anonymity against governments and banks.

Anonymity is a benefit. An opportunity. But its not a problem.

In the wrong hands, anonymous buying is dangerous. Knowing the transaction is untraceable will attract the
attention of criminals. Because let’s be honest: the more people accept Bitcoin, the more it’ll likely be used
for more nefarious reasons.

It’ll also be a problem for the government or law enforcement, after all. If more criminals adopt Bitcoin into
their illegal purchases, law enforcement will face a challenge in finding and prosecuting these criminals.

As such, we may see more policies and laws regarding cryptocurrency. Although it may be difficult to
enforce thanks to the anonymity, the government will still try.

People fear the consequences of these bills.  New tech policies miss the mark. Not enough government
officials understand the implications of using Blockchain and cryptocurrency. Instead of learning, they’re
more likely to slap on a bill and hope for the best.

Bitcoin isn’t the only cryptocurrency on the market. After its rise in popularity, alternatives like Ethereum
and Peercoin hit the markets. If the value of these alternative skyrockets, Bitcoin may be in trouble. To be
honest, the overall value of cryptocurrency and lack of reliability is a threat to Bitcoin and its competitors.

And just because cryptocurrency appears infallible now, doesn’t mean it will in the future. As more
information about it surfaces, the holes will reveal themselves. People, such as criminals, will take
advantage of the issues ASAP. (Frue 2018)
 35

5.2 REGULATIONS ON CRYPTOCURRENCY BY COUNTRY

By 2021 digital goods from the margins of the economy began to enter normalcy, resulting in increased
public access. Commercial crypto blanket network trading platforms in the United States and the industry
have become a daily conversation.
In November 2021, when bitcoin prices rose to about $ 60,000, the total value of all cryptocurrencies
exceeded $ 3 billion, an increase from about $ 500 billion in December 2020. Today more than 16,000 secret
funds are being circulated. , led by bitcoin. Total daily trading revenue is now estimated at more than $ 275
billion on more than 400 platforms.

The regulation of this new sector will require international cooperation and industry cooperation as it
provides an opportunity for progress. Excessive restriction can hamper new inventions and push the industry
into a more accepting environment, as the new digital space is global and boundless.
The control framework develops rapidly and changes rapidly. Some authorities have imposed strict limits
while others are strict advocates. Complete limits are rare and difficult to apply, but regulators try to clarify
the rules to suit the popularity of crypto.

Many market participants strongly demand a more defined regulatory framework and thus, certainty. This
will mean new rules, guidelines, or at least one official guide. The control race continues.
 36

India
In 2018 the Reserve Bank of India banned cryptocurrency trading and banned Indian banks from dealing
with cryptocurrency trading following consumer protection, AML and concerns about market integrity. In
2020, however, the Supreme Court of India overturned the ban, stating that there were no restrictions.
Despite widespread concerns, doubts, and the recent ban on cryptocurrencies, India has encouraged the
establishment and implementation of the blockchain. Work has also begun on the government-sponsored
CBDC, digital rupee.
The proposed crypto regulatory framework is published on the Lok Sabha website in 2021. The
Cryptocurrency and Regulation of the Digital Money Bill, 2021 was downgraded in the last days of the
session but will likely recur in the future.
The Advertising Standards Council of India announced a new directive relating to the marketing of cryptos
and NFTs in February 2022. The new rules, which come into effect on April 1, prohibit the use of the words
“money, securities, depositors, and savings” advertisements, as consumers often associate terms with
regulated products.

United States
The regulatory framework for cryptocurrencies is developing despite the fragmentation and differences of
opinion between the agencies. Although the Securities and Exchange Commission (SEC) is widely regarded
as the most powerful regulator, the Treasury’s FinCEN, the Federal Reserve Board and the Commodity
Futures Trading Commission (CFTC) have issued their own various definitions and guidelines. An
Executive Order from the White House released in March directs organizations to coordinate their regulatory
efforts.
The SEC often views many cryptos as securities, the CFTC calls bitcoin an asset, and the Treasurer calls it a
currency. In order to address legal conflicts, confusion over definitions, and administrative authority, the
Presidential Working Group and the Financial Stability Council will play a key role in developing a future
regulatory framework.
The Internal Revenue Service (IRS) defines cryptocurrencies as “digital representation of the amount that
acts as an exchange, account unit, and / or store value” and provides appropriate tax guidance. IRS requires
investors to disclose annual cryptocurrency activity in their tax returns.
The United States is home to a large number of crypto investors, trading, trading platforms, crypto mining
firms and investment funds.

Brazil
By 2021 as the Brazilian people really struggle, more and more Brazilians are turning to cryptos. According
to CoinMarketCap, about 10 million Brazilians are now participating in the crypto market. Legislatures in
Brazil have enacted a series of laws over the past few years and created a governing “sandbox”. Brazilian
lawmakers also passed a law requiring “visual service providers to adhere to the rules of financial services
communication, customer identification and record keeping.”
 37

The Brazilian Securities and Exchange Commission (CVM) has approved several crypto ETFs.
The government has declared that bitcoin is an asset and therefore under its control high interest rate tax.
Brazil has said existing AML rules extend to tangible amounts certain conditions.
The Special Department of Revenue The Brazilian Federal Revenue Service has published a document on
cryptocurrency taxes in the country.
The Central Bank of Brazil has said the CBDC, a real digital one, could be introduced in early 2023.

El Salvador
El Salvador has established itself as a pioneer in cryptocurrencies with its adoption of bitcoin in 2021 as the
official tender for the country. President Nayib Bukele has fully embraced bitcoin with promises of non-
payment of income tax on cryptos and plans to build a powerful geo-thermal city to try to attract bitcoin
mines.
The International Monetary Fund has urged El Salvador to back off, citing concerns about the country's
financial stability. Moving into a formal tender situation is widely regarded as a risky venture, where debt
rating agencies lower the country's debt rating. The move also raised concerns related to AML and KYC
compliance.

Germany
The German government was one of the first countries to provide legal guarantees to financial institutions,
allowing them to hold crypto-assets. Regulations stipulate that citizens and legal entities may purchase or
trade crypto-assets as long as they are licensed to a trustee. Firms must be licensed by the German Federal
Financial Supervisory Authority (BaFin).
BaFin views and classifies cryptos as "account units" according to the definition of German Banking Act. So
they are not official tenders, currencies, or foreign exchange notes or coins. Administrators have
acknowledged, however, that they are considered “crypto-assets” in line with the definition of financial
instruments.
Germany has registered for requirements under AMLD5. Established storage requirements for storage
services. Crypto-assets, however, are based on an agreement and are accepted as an exchange or payment
method or as an investment, and can be transferred, stored, and traded electronically.
 38

United Kingdom
The UK Financial Conduct Authority (FCA), HM Treasury and the Bank of England did Crypto-assets
Taskforce country.
FCA has created regulations covering KYC, AML and CFT designed for crypto-assets. It also formulates
regulations to cover VASPs, but ensures that they do not prevent new inventions.
Crypto exchanges must register with the FCA unless they have applied for an e-money license.
Cryptocurrencies are not considered a legal tender and taxes are levied based on activities. The FCA has
banned the cryptocurrency trading transaction.
The Legal Commission published a request for proof of digital assets in April 2021. The application seeks
the views of stakeholders before the publication of a digital assets consultation paper that will propose new
legislation.
In February 2022, the UK government and the FCA published proposals for concurrent changes to bring
financing some of the "eligible crypto-assets" to the HM Treasury promotional government and FCA's fiscal
policy.
There is no specific UK law governing the activities of crypto miners. Although there is no specific UK tax
law applicable to cryptos, HM Revenue and Customs has stated its treatment policy based on standard
principles. Receiving cryptos from an employer is considered "cash value" and is taxed as income based on
the value of the goods at the time of acquisition. When cryptos are held as a personal investment, income tax
applies when discarded. In cases where normal trading is involved, income tax instead of capital gains may
apply.
Australia
In 2018 new rules for digital currency exchange providers were implemented by the Australian Transaction
Reports and Analysis Centre (AUSTRAC) the financial intelligence agency and the AML / CTF regulator.
Firms are required to register and implement KYC policies, report suspicious activity and comply with AML
law.
 39

5.3 USE OF CRYPTOCURRENCY

1. Low cost transfers

One of the most popular uses of cryptocurrency is to send and receive payments at low cost and at high
speed. For example, a recent $ 99 million Lite coin (LTC) operation took only two and a half minutes to
process and cost the sender only $ 0.40 of operating costs. If this transfer was passed to the financial
coordinator the payments would be much higher and the transfer would take a few days, or more if this was
a cross-border transaction.
Low transactions associated with transactions using digital currencies such as Litecoin (LTC), Stellar (XLM)
or Bitcoin Cash (BCH) make them excellent payment transactions.
2. Earn interest on Bitcoin and other cryptocurrencies 'through Yield Farming'
Successfully trading crypto for profit requires a lot of time, experience and skill and instead many
cryptocurrency owners hold their coins for long-term profit. There are ways to earn a steady ‘interest’ in
crypto, however. Popular examples include DeFi borrowing and crypto staking. This article covers the main
ways in which an investor can participate in crypto yield farming, and this study shows which forums offer
the highest interest rates and which coins.
With interest rates offered at traditional bank accounts at all times low, lending your crypto to a reputable
site is definitely an option - with 12% per annum offered on some of the most widely used cryptocurrencies
like Tether. It is important to note, however, that this type of borrowing is harmless and is not guaranteed by
the FDIC or similar government agencies in other countries.
3. Another test store resistant to testing
While you may not think that your bank account and assets can be suspended, the reality is that this happens
more often than people realize - especially in areas with questionable legislation. All that can be required is a
person being charged with financial misconduct or making powerful enemies. When that happens, people
may find themselves without access to cash, even if they have done nothing wrong.
This is where one of the most unique and powerful ways to use cryptocurrency comes into play. Crypto
currencies such as Bitcoin serve as another asset store that does not prohibit the search for a person with
only the secret keys that you can access. Therefore, no personal Bitcoin wallets can ever be monitored by the
authorities.
4. Invest in a new first phase creation
The advent of digital token-based fundraising has allowed anyone with an internet connection to become an
investor in the innovation of early-stage technology, while at the same time providing new start-up programs
with much-needed seed money. Although it is a rare occurrence these days, initial coin donations and IPOs
are a form of fundraising that gives beginners the opportunity to raise money by selling a newly created
digital token to the first sponsors of the project by exchanging established funds like Bitcoin. (BTC) or Ether
(ETH).
In the past, access to these deals was only available to experienced capitalists, but the emergence of
cryptocurrency has opened up these opportunities to a wider network of investors. In some cases the most
successful digital tokens for ICOs have grown in value by a few thousand percent and cryptocurrency-based
funding has helped beginners raise more than $ 12 billion over the past two years.
 40

5. Walk the earth and beyond

Due to the rapid growth of the cryptocurrency ecosystem over the past 10 years, it is now possible to travel
around the world using crypto currency.
Suspended travel agents such as Cheap Air and Destenia accept Bitcoin as a payment method for booking
flights, car rentals, and hotels. The growth of the ATM bitcoin market also means that travellers are now
able to convert their cryptocurrency into local currency in many major cities around the world.
If space is more than your event, Richard Branson's space travel company, Virgin Galactic, announced back
in November 2013 that booking. Although the California company has not yet been able to successfully
launch a commercial airline, a few future astronauts have already paid for their tickets - valued at $ 250,000
- in Bitcoin, which includes Bitcoin representatives Cameron and Tyler Winklevoss.
6. Buy a Lamborghini (or Tesla)
Lastly, you can also use your crypto currency to buy a Lamborghini. Bitcoin's De Lovious luxury
marketplace enables "crypto rich" to buy sports cars including the popular cryptocurrency brand,
Lamborghini, using bitcoin. The market also offers a range of other luxury goods such as art, fine wine, and
real estate for those in deep digital packages. Also, Elon Musk says Tesla may soon adopt crypto with its
vehicles. (Lielacher 2021)
 41

5.4 FUTURE OF CRYPTOCURRENCY IN INDIA

The future of blockchain and crypto innovation is bright in India. There are many partners who will drive the future -
Young Indians to use it, Government / RBI to manage it, Years of innovation.

Indian crypto trader and developers still have high hopes for crypto currencies despite the weaknesses in the
guidelines regarding crypto currencies. This is because crypto is yet another innovation and will require investment
to make regulations regarding crypto.

According to a recent study, India is the fastest growing cryptocurrency market in the world. As a new study, India is
the fastest growing cryptocurrency market in the world. It has grown at an astounding rate in recent years, and its
rate of improvement has been much faster than in other lands. Experts predict that India will play a major role in the
future of cryptocurrency if it moves forward in this way.

The fate of cryptocurrency in India looks bright, given the country’s geographical location and its decision-making
government. The Indian government is an active player. The Indian government is currently developing a policy on
Web 3.0. To become a major player in the global economy of Web 3, they must be involved in the development of
global strategies and align their strategies in this fast-paced world. Until then, Indian beginners web3 have to fight
for a safe management climate in general.

India's technical expertise is poised to play a significant role in the global development of this sector. The Indian
technology field has been experiencing dramatic developments over the past 10 years, and continues to attract top
talent worldwide.

The Indian IT site employs more than 4.4 million people, 80% of whom are computer programmers, and contributed
US $ 180 billion (or 7% of GDP) to 2020 exports.

These engineers are very familiar with both the development of common systems and new emerging technologies,
for example, blockchain, AI, IoT, and VR / AR. With more training and information on openness to this new
development, they will be in a better position to find important jobs in the developing web3 economy globally.

ideas on Web3 and India - Web 3.0 is the culmination of cryptographic funding, and as a global head of innovation,
India should be at the forefront of building a strategy around it.
 42

CHAPTER 6: CONCLUSION

6.1 KEY FINDING

 Technology which stores information electronically in digital format in this technology cryptocurrency
plays a major role in maintaining secure and decentralized records of the transactions taking place all over
the world as this reduce the risk of money laundering and also eliminates the processing and transaction
fee. Cryptocurrency is also used in many ways such as travelling purchasing etc. but at present moment
only at some limited places and thing’s respectively.

 The major cryptocurrencies of crypto world such as Bitcoin and Ethereum are the one whose movements
are followed by the other cryptocurrencies such as if the price value of Bitcoin Ethereum increases all the
other currencies follows the pattern of price movement. the volatility of the market is so high that a
person can gain 100% profit in a day and can lose 100% same day.

 As the transaction volume and market value of cryptocurrency is low as compared to other financial
markets all over the world, it does not have much effect on the monetary policies as there use is still very
low level.

 In order to reach at that level of financial market they must be a substitute for the official currency. as
compared to gold, bitcoin has dominated in a very short span of time . price of Bitcoin has left the gold
way behind with both having a limited supply.

 After seeing the risk volatility and decentralization of the crypto in Bitcoin the government of many
countries had tried to put rules and regulations over the use and trade of the crypto currency but the
government has failed to put a proper regulation on it because of the decentralization of the market the
only thing many countries has done yet is to put heavy tax on the trading of crypto.
 43

6.2 CONCLUSION AND RECOMMENDATION

Emergence of Bitcoin have started on debate about the future of all cryptocurrency despite bitcoins recent
issue and talks going around about that it will mean where it started . its success since its 2009 launch has
inspired the creation for the alternative coins other than Bitcoin such as Ethereum, Solana, long, Lite coin
etc.

The innovation of digital currency that aspires to become part of the mainstream financial system has been
the story of Bitcoin in crypto as the future of success and failure of all crypto currency depends on the future
of Bitcoin. crypto has the advantage of decentralization and transparency it also has disadvantage of the
improper regulation and volatility of market price. the initial focus should be concern related to crypto
including financial integrity, investor protection and tax innovation. more could be done at the international
level to facilitate the development of appropriate policy.

If someone is considering investing in cryptocurrency then first one should experience the volatility , risk it
comes with and invest in the same way like one would treat any other highly speculative venture. In other
words one should be investing only that part of there money which they can afford to lose and take risk on
it. the huge price surging of the market increases the risk of loss and profit for an investors.

For example coin at a price of $0.6 can move to $6 in a span of few days . a recent incident of a very
speculative crypto name Luna Tera the price range of ₹7000 to a price range of ₹0.007 15th of may 2022
there was a drastic change of the price because of some problems in the balancing of the price with respect
to stable coins and the vice versa event happened when a coin name shiba inu with the price range of
₹0.0005 price range of ₹0.0099 during the month of October 2021 . if one cannot stomach that kind of
volatility then find other financial investments than this crypto market which better suits someone.
 44

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