School of Business
Cryptocurrency, Bitcoin, Blockchain, Finance, Diversify
Rice, Mitchell, "Cryptocurrency: History, Advantages, Disadvantages, and the Future" (2019). Senior Honors Theses. 933.
Cryptocurrency is a digital asset that has seen a large amount of attention within the past five years. Its origin is intriguing to some based upon its newness, yet it has invoked mysticism and skepticism in others. Bitcoin is the most recognizable currency, receiving heavy media attention. There are several other cryptocurrencies as well, less in the spotlight. Most appealing to cryptocurrency could include lack of government oversight, and increased privacy available to the consumer(s) (Bunjaku, Gjorgieva-Trajkovska, and Miteva-Kacarski, 2017, p. 37). Additional advantages include the simplicity in the start-up process, the ease of transferability, and the opportunity to have a seamless process in investing and/or exchanging monies. Cryptocurrency creates the ability to invest for some people groups that could never invest before and diversify investment portfolios (Theron and van Vuure, 2018, p. 2). While the newness of cryptocurrency certainly has been appealing for some, it also has been perceived oppositional by others. There has been concerns identified with regard to the level of trust required, an obvious and significant drawback if valid. Another identified disadvantage to cryptocurrency is its low amount of oversight and liquidity hurt for investing future. The ability for cryptocurrency to be used for illegal and/or evil activity is an ethical drawback (Nian and Chuen, 2015, p. 15). Lastly, the uncertainty of the future is a significant drawback. The future of cryptocurrency requires much economic forecasting. The new changes that cryptocurrency will bring to traditional economic institutes is an area which cryptocurrency needs to explored more. Lastly, is cryptocurrency a fad or an economic bubble.