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Research Paper Content Guidelines   1. Define, describe, and/or explain cryptocurrency.  What is it?  How was it derived?  What is...

Research Paper Content Guidelines  

1. Define, describe, and/or explain cryptocurrency.  What is it?  How was it derived?  What is its significance?

2. Compare cryptocurrency to stock.  Are there similarities?  What are their differences?

3. Would you rather own cryptocurrency or stock?  Why?

** PLEASE CITE THE REFERENCES**

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Answer #1

As per the Chegg guidelines, among multiple questions, the first problem needs to be answered. Therefore, the solution of problem 1 is provided below:

1.

Solution:

Cryptocurrency:

  • Cryptocurrency refers to a digital asset that is derived for working as a medium of exchange.
  • It uses the strong cryptography technique to provide the security of financial transactions.
  • It controls the creation of the additional units.
  • Also, it verifies the transfer of the assets.
  • It is a strongly decentralized system as compared to the banking systems and the centralized systems.
  • The first decentralized cryptocurrency is Bitcoin which is open-source.

Derivation of cryptocurrency:

  • The cryptocurrency is derived as a side product of some other invention.
  • The announcement of the Bitcoin is basically referred to as a peer to peer electronic cash system.
  • After considering many centralized systems for the creation of the electronic cash system, the attempts are failing.
  • So, the developer develops a system that is not a centralized system, means the system has no central entity.
  • In this way, the birth of cryptocurrency happens. For the decentralized system, no-one is there to control and the transactions are peer to peer.
  • Hence, in this way a decentralized system cryptocurrency is developed.

Significance of Cryptocurrency:

  • Nowadays, cryptocurrency becomes successful because of its best qualities.
  • Some of the other attempts for digital cash is not much successful.
  • Its significance is that it is used by almost everyone because it has very secure technique for money transactions.
  • It is fast and very comfortable in its way of payment worldwide.
  • They are very private and anonymous for the means of payment for the black market.
  • So, since it provides so many facilities that make it more significant.

Kindly post rest of the questions separately for answers.

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