Digitalization of world economy, shift to cryptocurrency.
As the world economy becomes more and more digitized, cryptocurrency will become a major, mainstream medium of financial transactions. Do you agree with this statement and why/why not?
The rapid development of the cryptocurrency market has raised questions about whether cryptocurrencies will challenge the existing order of traditional financial institutions or is it just a temporary trend. Today, opinion remains divided but I believe, digital currencies and decentralization of finance are the destined future for the world. There are lots of questions remaining to be answered, yet they have to be discovered first. Currently, 92% of the money is digital, therefore I can’t find any reason but not to believe cryptocurrency will become a major, mainstream medium of financial transactions. Despite, the concept being introduced a few years ago, digital currencies have been supported by both public and private actors. The interest in digital currency has been rapidly increasing, since its announcement, and now it is expected to be the main financial transaction method. The medium of financial transactions has been already shifted to the digital medium with credit cards, however, what we are witnessing is a shift towards decentralized finance. One fundamental reason for the popularity of digital currencies is because it transacts through decentralized financial mediums. Decentralized finance will keep growing, as long as the internet exists, and will adapt itself according to consumer demand. Since the cryptocurrency system is collectively produced, decentralized finance is much more responsive than centralized finance.
To support my point, the paper will be comparing centralized finance and decentralized finance, evidence and data will be presented while comparing both financial systems. Advantages and disadvantages regarding both of the systems will be highlighted to support decentralizing digital finance as the future of finance. Other than that, there will be a SWOT analysis conducted for the cryptocurrency market, to have a better understanding of its returns and risks. The analysis will conclude by arguing, digital currencies will be the popular financial transaction method.
This paper aims to analyze the resiliency of cryptocurrencies and to determine
whether or not they are likely to become a permanent financial system in the future.
The paper compares current financial systems with decentralized finance to explain the potential of digital currencies to become a permanent medium for financial transactions. Additionally, this comparison reveals the main difference of cryptocurrency in terms of usage, legal point of view, and popularity.
Stand in literacy:
Roadmap of the essay:
Paragraph 1 –
Introduction – a brief history of cryptocurrencies, trends, and interests surrounding digital currencies. I will claim that cryptocurrencies are the future of financial transactions. For the thesis of the paper – The paper compares current financial systems with decentralized finance to explain the potential of digital currencies to become a permanent medium for financial transactions. Additionally, this comparison reveals the main difference of cryptocurrency in terms of usage, structure principles, and popularity. Digital currencies have the potential to become a permanent medium for financial transactions, the main indicators to this are (usage, principles that are built on, and new coming players into the market)
Paragraph 2 –
In terms of usage, crypto has no limits, global transactions, banking, trading, utility ex. The blockchain system that cryptocurrencies are built-in is constantly developing.
Advantages of utilities that digital currencies have, what is the difference with centralized financing
Relationship between technology and other financial systems. The development process of digital currencies parallel to technology.
In terms of technology, centralized financial systems have limits, regulations, restrictions.
Security of savings, centralized finance secures savings with exchange rates however digital currencies secure with smart contracts.
Ideas and principles that digital currencies build on – global transactions, financial freedom, regulation-free zone, no government control but personal control. Many people have been provided opportunities by decentralized finance that weren’t provided by their banks.
Global transactions – more freedom in the market – new financial opportunities
The regulation-free zone, no government control but personal control. Centralized finance misconception about its being centralized. The centralized finance sector is only as stable as we pretend it to be. Realistically, centralized financial systems are impacted by a variety of issues such as fraud, forgery, questionable lending processes, and more.
The popularity of digital currencies, new businesses entering the market, global trends, reasons behind its popularity, and so on.
Swot Analysis to the cryptocurrency market.
Chyzhmar, K., Yunin, O., Paterylo, I., Alieksieienko, I., & Shevchenko, S. (2019). PROBLEM OF PROTECTION AGAINST CYBER CRIMES IN THE FIELD OF CRYPTOCURRENCY CIRCULATION. Journal of Legal, Ethical and Regulatory Issues, 22, 1-6. Retrieved from http://myaccess.library.utoronto.ca/login?qurl=https%3A%2F%2Fwww.proquest.com%2Fscholarly-journals%2Fproblem-protection-against-cyber-crimes-field%2Fdocview%2F2330971691%2Fse-2%3Faccountid%3D14771
Ciaian, P., Rajcaniova, M., & Kancs, D. (2016). The digital agenda of virtual currencies: Can BitCoin become a global currency? Information Systems and eBusiness Management, 14(4), 883-919. doi:http://dx.doi.org.myaccess.library.utoronto.ca/10.1007/s10257-016-0304-0
Maurice Obstfeld, Two challenges from globalization, Journal of International Money and Finance,
Volume 110, 2021, 102301, ISSN 0261-5606, https://doi.org/10.1016/j.jimonfin.2020.102301.
Milutinović, M. (2018). CRYPTOCURRENCY. Ekonomika, 64(1), 105-122. doi:http://dx.doi.org.myaccess.library.utoronto.ca/10.5937/ekonomika1801105M. For more information on Digital Economy check on this: https://en.wikipedia.org/wiki/Digital_economy
Plagiarism Free Papers
Thehomeworkwritings.com’s team of writers write all papers from scratch. We deliver 100% original, unique papers. That’s what makes us the best custom homework writing service
We provide unlimited free revisions to all customers and on all papers. Try The Homework Writings today for the best custom homework writing service and experience in the industry.
Thehomeworkwritings.com gives clients title pages free of charge. Your only job is to fill out our order form. We will handle the rest.
As the leading essay writing service, we never submit any paper without a reference/bibliography page. We do this free of charge too.
Originality & Security
At Thehomeworkwritings.com, we take great pride in delivering only high-quality 100% original papers to all our clients. We also never share any of our clients’ information with third parties. Your data is safe with us.
24/7 Customer Support
No other custom homework writing service has a friendly, always available customer support team to respond to clients like us.
Try it now!
How it works?
Follow these simple steps to get your paper done
Place your order
Fill in the order form and provide all details of your assignment.
Proceed with the payment
Choose the payment system that suits you most.
Receive the final file
Once your paper is ready, we will email it to you.
Why outsource our services
We have the best customer support team for your essay writing needs.
You won’t find any other custom homework writing service with pricing as flexible and affordable as ours.
Admission help & Client-Writer Contact
We provide a direct line of communication with our writers for the best writing experience.
As the leading custom homework writing service, we take deadlines very seriously. You will have your paper submitted on time without any delays.
We truly value your feedback, good or bad, and always use your feedback to help us provide you with an even better custom homework writing service