Background
The central idea of Bitcoin was first initiated by Satoshi Nakamoto in 2007 by using SHA-256 cryptocurrency hash function as its proof of work scheme through the blockchain technology. Nakamoto was born on April 5, 1975 and has claimed to be a man of Japan origin living in the USA and Europe. He has mostly focused on a number of cryptocurrencies and computer science. In August 2008 by Bitcoin.org, domain registration took place. In October 2008, the Bitcoin whitepaper was introduced. The first trial of Bitcoin was recorded on January 3, 2009 through a code: XBT. Bitcoin is known as decentralized digital currency by peer-to-peer network. IOTA was the first cryptocurrency introduced not through blockchain technology, but by using the tangle. In the process of all categories of digital currencies, which where aimed at resolving the double expanding problem.
Among the top cryptocurrencies are: Bitcoin, Litecoin (LTC), Ethereum (ETH), Zcash (ZEC), Dash, Riplle (XRP) and Monero (XMR). The testing period of the Bitcoin, however, continued till 2010. The preparation for the execution continued till 2013 when the first real operation of Bitcoin took place. As of May 24, 2017, Nakamoto is believed to own up to roughly one million Bitcoin with a value estimated at approximately USD 7 billion as of November 2017. On December 31, 2017, Bitcoin‘s value reaches USD 15,939.1348 and thus makes Bitcoin among the fastest growing financial engineering with 151.082% p.a. Current price of Bitcoin is tremendously decreased to USD 9532.18 as at May 6, 2018. It is further recorded that the initial token price of Bitcoin was USD 0.007, but the value increased to USD 10.85 within a year. Bitcoin began a roaring price 1 BTC = USD 770, but as at December 31, 2017, the price hit with 1 BTC = USD 15,939.1348. Through such growing track record, the Bitcoin is capturing the market on its own magnetic power without being controlled by any sovereign or specific regulatory standard. However, the issuer or the originator or the receiver positions as a virtual sovereign with vague identity. As a result, it has been observed that the users or expenders or investors participate in Bitcoin with no illegal or ethical protection.
Cryptocurrency Technology
In recent history, the cryptocurrency has been developed through a blockchain technology using the SHA256, a cryptographic hash function as is proof of work scheme. It is decentralized digital currency by peer-to-peer network, but IOTA was among the first cryptocurrencies not based on blockchain technology, but using tangle instead. Cryptocurrency through the blockchain technology is a virtual shared public leisure on which Internet network is based. All encrypted confirmed transactions are nodded and recorded in the blockchain as a proof of transactions. Each transaction is a chain and connected to each other thus enables a cryptocurrency digital wallet in calculating one’s spendable balance, and new transactions can be verified to be expanding cryptocurrency that is actually owned by the spender or user.
Market Scenario
A cryptocurrency is costless, fastest and easiest digital currency business, creating an opportunity for all across the world into this economic environment. The cryptocurrency moves with its promising potential to encourage all levels of mankind to participate in the digital marketplace to maximize one’s enterprising and entrepreneurial opportunities without unnecessary obstacles. Cryptocurrency may be a solution in the contemporary economic reality as an alternative currency to attribute a dual currency system in any jurisdiction in easying the day today commercial dealings. Despite the existence of the cryptocurrency with numerous comfortnesses, it encounters risks if one does not comply with the standard regulatory frameworks and also the ethical standard. It is submitted that the cryptocurrency can only be successful should one is governed by the acceptable regulatory standard.
In the contemporary global cyberspace, there are numerous cryptocurrencies offered through blockchain technology, most of which are moving ahead with significant results, particularly with commercial gain. Among those cryptocurrencies, the most popular are 10, namely1 Bitcoin Cash (BCH), NEO (NEO), Monero (XMR), Dash (DASH), EOS (EOS), Ethereum (ETH), Cardano (ADA), Zcash (ZEC), Litecoin (LTC) and Ripple (XRP).
Confusion-Position-Reasons
There are numerous confusions arising out in cryptocurrency as to whether it is a currency or commodity or product? Is it a transaction with privity or with uncertainty? Does it survive on its sovereignty or on own existence? Is the receiver registered or based on virtual existence? Is the receiver known or vague behind the curtain? Is the transaction formalized by encryption or digit? Does it concern about the risk plan or moves on with no risk concern? Does the source of income in cryptocurrency is known or uncertain? Does cryptocurrency comply the standard or regulatory policies?
To response to those queries with appropriate solutions are: A cryptocurrency is recommended to be treated as a commodity, because of the nature of the transaction by buying and selling in the open digital market. In a cryptocurrency platform, the receiver shall be registered and known so to establish a privity between the user and the receiver. A cryptocurrency is recommended to be with coin or token-based offering through initial coin offering (ICO), but not through exchange platform, because it may encourage money laundering activities. Encryption may not be sufficient to protect the users in a cryptocurrency; thus, additionally a biometric process shall also be required to create a better authentication and security for the user. A cr...