Cryptocurrency: Pros and Cons and Company Application
Assignment Overview
Economics and Cryptocurrency
Cryptocurrency has supporters and detractors. Is it a tool for transparency in digital transactions? Is it a way to evade taxes or hide net worth?
Session Long Project 3 Resources
A beginner’s guide to cryptocurrency (2022)
Biden orders government to study digital dollar, other cryptocurrency risks (2022)
How to Invest in Cryptocurrency (2022)
Cryptocurrency (2022)
Why This Crypto Crash Is Different (2022)
Cryptocurrency has an impact on economies. That’s why some are afraid of it – and some welcome it (2022)
Why crypto’s bruising comedown matters (2022)
SLP Assignment
Economic “White Paper” on Cryptocurrency
Using the module’s readings and other research, write a white paper explaining cryptocurrency from an economic perspective. See the Course Data File for the required Company focus.
Background
Deliver a brief background on the economics of cryptocurrency vs. traditional currency (fiat money). (1/2 page) Research Required.
Pros and Cons
Explain the pros and cons of cryptocurrency using economic applications and terminology. (1/2 page) Research Required.
Company Application
Publicize the company’s use of cryptocurrency to position it in a positive light. Include why the company chose to use cryptocurrency. Research industry trends in the use of cryptocurrency. (1 page) Research Required.
SLP 3 Assignment Guidance Files
BUS530 SLP 3 Assignment Video Guidance
BUS530 SLP 3 Assignment Guide
No quotations are permitted in this paper.
Since you are engaging in research, be sure to cite and reference the sources in APA format. NOTE: failure to use research with accompanying citations to support content will result in reduced scoring “Level 2-Developing” across the grading rubric. This is a professional paper; not a personal one based on feelings. It must be written in the third person; this means words like “I”, “we”, and “you” are not appropriate.
SLP Assignment Expectations
Use the attached APA-formatted template (BUS530 SLP3) to create your submission.
The template is set up in APA 7: double-spacing, font, margins, headings, page breaks, APA help links.
BUS530 SLP 3
Your Name
Trident University International
BUS530 Managerial Economics
Due Date
BUS530 SLP 3
The business world is revolutionizing, and various payment methods are emerging. Cryptocurrency is one of them, and people globally are using it. One company that has partnered with crypto to allow cryptocurrency payments is Visa Inc. Although cryptocurrencies have advantages, they have disadvantages that investors must be careful about.
Cryptocurrency
The adoption and use of cryptocurrency as an alternative exchange medium and store of value is vastly growing globally and threatening to replace the traditional medium called flat money (Frankenfield, 2023). Cryptocurrencies act as payment infrastructure and instruments to form alternatives to the existing payment systems. Cryptocurrencies continue contributing to the continuation of money and may substitute existing forms. They also provide asset-holding diversification and payment option for those who do not wish to use the flat money system. Flat or traditional currency is centralized money managed by a recognized government. The central banks and governments vouch and determine the value of the flat money. The emergence of cryptocurrency aims at solving the challenges of flat money, especially because it is not controlled by any centralized body (TradeStation, 2021). Therefore, cryptocurrency aims to remove intermediaries, improve cost efficiency, and advance customer access and control.
Pros and Cons
Using cryptocurrency has several advantages and disadvantages. One of the advantages of cryptocurrency is that it is decentralized and eliminates intermediaries and possible system failures. This guarantees transactions worldwide, avoiding crises like those witnessed in the United States in 2008, where financial institutions failed (Frankenfield, 2023). Secondly, using cryptocurrency helps facilitate the transfer of funds between two parties without involving an intermediary. The transaction is made secure through the use of public and private keys. Thirdly, the transfer of funds is faster, almost instant, because it does involve a third party.
However, there are downsides to the use of cryptocurrency. Instead of being anonymous as thought, cryptocurrency transactions are pseudonyms. This means digital transactions can be traced, giving organizations like the FBI a loophole for tracing and investigating transactions. Secondly, cryptocurrencies have become a target for criminal activity, like the rise of crypto hackers and money laundering. Therefore, the use of cryptocurrency may not be safe. Additionally, the cryptocurrency traded in public markets suffers price volatility against the notion that they do not fluctuate in value. For example, the value of bitcoins dropped from $65000 in November 2021 to around $20000 in May 2022 (Frankenfield, 2023).
Company Application
Visa Inc. is among the global companies that have integrated cryptocurrency into their system. It is a multinational financial services corporation whose headquarters is in San Francisco in the United States. The company facilitates the global tran...