Afaduzzaman Kashem

ENGL 11000-5BC2

Prof. Jack Wernick December 2

GENRE: FICTION

Fairytale of Cryptocurrencies

The currency market has endured massive revolutions from traditional forms of exchange such as barter trade, where individuals exchanged goods with goods with no intermediate currency. The introduction of coin currency value necessitated a significant milestone in the market by intermediating the exchange of goods and services. Consequently, the coin currency has formed the basic foundation of many innovations in the currency market. These include the introduction of paper currency in China, the invention of currency monetary systems, and electronic payment systems. Moreover, the evolution of the currency market has resulted in the invention of crypto-currency. However, underlying conversations on the crypto-currency mark it as more fairytale than practicality in the currency market.

The magic of crypto-currency faces out years of evolution in the currency market. This can be attributed to the fact that cryptocurrency as a distinct entity is independent digital and physical currency forms that have formed the basis for all innovations. Additionally, crypto- currency constitutes of digital asset with no physical currency support. Therefore, this new fairytale does not depend on gold, silver, or oil. As a result, there is a consideration for the validity of this new metamorphose in the currency market.

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The modern fairytale, crypto-currency, is based on an unnatural technology commonly referred to as a blockchain. Blockchain constitutes a complex form of a rapidly growing database of records that are immune to the external universe. These technology allows for currency exchange among individuals exempt from traditional intermediate costs. Additionally, the crypto- currency system encompasses other forms such as bitcoin. Unbelievably bitcoin constitutes an infinite supply of digitally available money

The magnitude of complexity in the crypto-currency market is incomprehensible. All transactions are recorded despite the fact that the market does not constitute any currency monetary systems. Additionally, the market is independent by itself and is not controlled by any individual or organization but rather a group of different computers where information is manipulated without tampering or revising records. Blockchain technology allows for the bulk accumulation of transactions, thus ensuring a secure un-traceability of transaction records.

Conversely, this new currency technology requires an individual to think like computers. Contrary to traditional currency systems in which anyone, despite their literacy level, can engage, blockchain technology requires a genius computer guru. These can be attributed to its decentralized state with not as much as typical bank customer care you can call whenever you want to make a deposit or withdrawal. Additionally, the uncharted state of this currency system makes an individual prone to highly vulnerable. Transactions are irreversible, and the identity of each user is unknown.

Conversely, crypto-currencies have the capability to make to impact the global economic market significantly. This is because blockchain technology removes physical barriers to

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transactions compared to traditional currency systems. Moreover, blockchain technology disrupts monetary systems such as banks, thus making transactions cheaper and extremely fast. Also, crypto-currency systems will dispute common principles of the banking system, which include transparency and integrity.

Evading government taxation when making a significant transaction of millions of dollars sounds more like a fairytale in this modern world. However, the crypto-currency system can necessitate large untraceable, unchartered transactions. For example, with a cryptocurrency system, it is possible to buy an inland on mars; however, you’ll have to make sure the person on the other end of the transaction is a registered alien citizen, which is practically impossible.

GENRE 2: SPEECH

Is Cryptocurrency The Way Forward For Currency System?

Cryptocurrency constitutes virtual currency traded digitally. Its introduction has raised significant considerations in the currency market. Despite many financial institutions raising the need for adaptation of this currency mode, there are underlying arguments concerning its feasibility. Notably, I would argue that this can be attributed to the limited knowledge and understanding of how cryptocurrencies work. Consequently, to address this, I will highlight the working mechanism of cryptocurrency, limitations of crypto-currency in the modern market, and some of the advantages we stand to accrue from its implementation

Cryptocurrency constitutes a decentralized system referred to as blockchain technology. Blockchain is made up of a database comprising a digital transaction ledger immune to revision and editing. It is controlled by a distinct system of computers that handle the manipulation of transaction information. Notably, the ever-increasing bulk of time-stamped records referred to as blocks is interconnected through cryptography, thus forming a blockchain. Common crypto- currencies such as bitcoin incorporate blockchain technology where the chain of interconnected computers manipulate confirmation of transactions using algorithms. The process is referred to as bitcoin mining, and individuals who complete a distinct block through the transaction are

rewarded. The block is then minted to the bulk pool of ledgers using a unique cryptograph known as a hash.

Conversely, the adaptation of the cryptocurrency system has several limitations. Given the decentralized and uncharted state of cryptocurrencies, there posit significant compromise to the basic principles of currency systems, including transparency. Transactions in crypto-currency systems are conducted by a chain of interconnected computers through algorithms. As a result, it is not supported by a single distinct group of institutions constituting human factions in a specified physical location compared to traditional currency systems. Additionally, ledger transactions are encrypted, thus making it hard to identify parties involved which may necessitate reversibility and ensure fraudulent transactions. Finally, crypto-currencies are supported by virtual currency form, which is not backed up by any physical value such as gold, thus raising concerns for its legitimacy.

The adaptation of crypto-currency will necessitate protection of currency value from aspects such as inflation. Cryptocurrencies such as bitcoin have infinite value and are not subject to depletion. Its value increases with an increase in transactions. Moreover, crypto-currencies are independently managed by algorithms on a distinct chain of computers, thus ensuring the system is self-governed and managed. Global transactions are often feet for many, which will not be the case with crypto-currencies as their decentralized digital state allows for transaction at any point. Also, crypto-currencies will face off monetary systems and regulatory bodies, which result in transactional fees, thus making it a cost-effective currency model. In addition to its magnitude plentiful bounty of advantages, the crypto-currency system will ensure secure and private transactions. These can be attributed to the cryptography mechanism incorporated in its work.

Despite its limitations, the adaptation and incorporation of cryptocurrency are inherently here to stay. While there are underlying concerns for decentralization, transparency, and regulation of cryptocurrencies, the magnitude of gains we stand to accrue with its implementation is evidently outstanding. With the proper knowledge of the operation and implementation, the cryptocurrency system will be a significant milestone in the currency market.