Question

Do you think that cryptocurrency (and the use of blockchain technology) is a temporary craze or is it a glimpse into the future of investments and world trade? More importantly, what implications does this trend have (if any) on global business? Share your thoughts and support your opinions.

Answer 1

answer-

Crypocurrency is not just a temporary craze but it has great potential to become the currency that most of the population of the world will use. As we know that Crytocurrency is type of currency in digital form which is encrypted to make sure secure transactions. We also know that, World is moving towards online shopping and transaction so they need currency which they can use securly but not have to put that in their pocket. the trend of internet and online transaction created a platform for business and people to move towards adoption of crypto currency.

Some economic analysts predict a big change in crypto is forthcoming as institutional money enters the market. Moreover, there is the possibility that crypto will be floated on the Nasdaq, which would further add credibility to blockchain and its uses as an alternative to conventional currencies

Bitcoins are created digitally through a “mining” process that requires powerful computers to solve complex algorithms and crunch numbers. They are currently created at the rate of 25 Bitcoins every 10 minutes and will be capped at 21 million, a level that is expected to be reached in 2140.

Harvard University Professor of Economics and Public Policy Kenneth Rogoff suggests that the “overwhelming sentiment” among crypto advocates is that the total “market capitalisation of cryptocurrencies could explode over the next five years, rising to $5-10 [trillion].”

This trend of cryptocurrency will have huge impact on global business because this would remove national boundaries and currency exchange rate because the value of bit coin will the same in all countries. Global business will be able to do import and export in this currency. This will bring a new era for global business doing transaction.