Block Chain Technologies and Crypto Currency as Financial Assets
Irfan Mohi Uddin Lnu
Department of Computer Science, Monroe College, King Graduate School
KG604: Graduate Research & Critical Analysis
Dr. Donna Tennyson
2/11/2023
Feedback from Dr. Tennyson
- Summary (2nd paragraph) section of objective summary should be identified with 2nd level heading.
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Objective Summary 1
Introduction
Cobert et al. (2018) extensively researched blockchain technology and the essential topics in such markets. The authors come from higher learning institutions like Dublin City University and Trinity College Dublin. The authors present the study in 2018 about the major topic since the development of Bitcoin as a financial asset in 2009 up to 2018. The main areas of the research paper include how blockchain technology has evolved, the developments happening in such markets, and unique issues about such demands. The researchers wanted to analyze various literature surrounding the growth of blockchain markets. This research would help learners, professionals, and policy-makers about the current financial currencies of blockchain technology. The authors also recommend diversifying research in the cashless currency of crypto.
The paper starts with a critical analysis of the dilemmas with this new currency that the world should be adapting to. Those individuals and organizations that vouch for such a new form of currency suppose that the world has a lot to gain from the safe and secure means of transaction. The authors also explain that direct transactions and payments between parties could be at risk of pricing bubbles. Cobert et al. (2018) suppose that this currency could endure the problem of price bubbles because of the recent increase in the price of Bitcoin. The new technology in finance will impact financial regulations because it brings forth a new set of currencies that traders will engage in. Companies that diversify to this technology are better positioned to earn returns as their income is also diversified. Surprisingly, the authors suggest that Bitcoin technology consumes more energy in the present than before. Other studies indicate that bitcoin technology only consumes a little power since mining costs exceed revenue.
Conclusion
The paper discusses the topic of crypto technology and its evolution since its inception in 2009. Such technology is a peer-to-peer electronic cash payment method that users can use without following the formalities of banks. Bitcoin’s price volatility comes from two features: cybercrime and its disorientation from the current financial regulations. The author supports that Government action affects the price of Bitcoin similarly to those sanctions in South Korea (Cobert et al., 2018). Crypto technology and Bitcoin have faced a lot of cybercrimes that have amounted to millions of dollars in losses by stakeholders in the market. Thus, this technology can be the future of financial transactions, but the market needs to understand its evolution and what regulations fit.
Reference
Corbet, S., Lucey, B., Urquhart, A., &Yarovaya, L. (2019). Cryptocurrencies as a financial asset: A systematic analysis. International Review of Financial Analysis, 62, 182-199.https://doi.org/10.1016/j.irfa.2018.09.003
