The perceived risk is the consequence of a selection that reflects the difference between its end results Gefen et al. The major reasons why people fear adopting new technology are risk and uncertainty Worthington and Edwards, ; Pikkarainen et al. Empirical research on factors predicting the behavioural intention by Faqih defined the risk seen as an understanding of the degree of insecurity and the potential negative importance of consuming or buying a product by the consumer.
Perceived risk was utilised as a factor of the behaviour of investors or consumers to use or to adopt a product Salisbury et al. Moreover, perceived risk was utilised as a predictor of the use and adoption of technology Featherman and Pavlou, Behavioural intention has been shown to be affected by perceived risk Kesharwani and Bisht, The studies of Chen ; Yang et al.
Security and privacy concerns were discovered to be key factors in risk perception Tang et al. One of the three most important elements in influencing cryptocurrency acceptance is perceived risks viability, safety risk, third-party service default risk, user error risk, risk of privacy loss, counter-party fraud risk, and danger of illegal affiliation Nuryyev et al. More than a few modern types of research have been studied with the aim to utilise Fintech with inconsistent outcomes and have perceived risk as a factor influencing its behaviour.
In their study, security certificates are considered as an important precursor to online banking Khan et al. The perceived risk influences mobile banking in rural locations significantly in terms of descriptions Kishore and Sequeira, The findings revealed that the security or privacy risk has a negative impact on the intention to use internet banking Lee, Shaikh et al. It has influenced other factors that, in the future, have a direct effect on the behavioural intention to adopt or use.
Farah et al. Moreover, Moon and Hwang concluded from their findings that perceived risk has no negative effect on the behavioural intention to use crowd-funding. Mendoza-Tello et al. There was no evidence of a substantial and direct link between perceived risk and behavioural intention to use Widyanto et al. Cryptocurrencies are a developing financial technology involving potential risk.
Hence, the following hypothesis has been developed:. H Perceived Risk negatively influences Behavioural Intention to use. Financial knowledge is described as the understanding of important financial concepts that allow an individual to make effective and educated financial decision-making according to their ability Stolper and Walter, Hastings et al. As used in academic literature, financial literacy has a range of meanings: it is used for financial products e. Financial knowledge as a predictive factor of financial behaviour has been studied by several researchers.
Van Rooij et al. There is a problematic issue of a lack of financial literacy if it makes people incapable of optimising their own welfare or the sort of competitive pressures required to achieve market efficiency, especially if their stake is substantial. This has evident implications for society and individual welfare Hastings et al. Duarte and Hastings ; Hastings et al. Many researches have shown broad and preventable consumer financial errors by consumers, some with insignificant financial implications.
In addition to the lab experiments by Choi et al. Other financial errors include high interest debt holdings and lower balance sheets in the credit card Gross and Souleles, , holding taxable assets into tax-deferred accounts and non-taxable or taxable assets Barber and Odean, ; Bergstresser and Poterba, , borrowing from a payday lender when cheaper sources of credit are available Agarwal et al. Individuals with little financial understanding are less interested in investing in equities Lusardi and Mitchell, They mention publications from the U.
Moreover, Stolper and Walter discussed that people's behaviour toward more saving, saving planning, financial markets participation, and intellectual selection among financial instruments are all associated with greater financial knowledge. Similarly, bad financial decision making, poorer debt management, expensive credit card practises, and additional expensive loans are all associated with lower financial knowledge. Relevant findings have been described by Stolper and Walter , who argue that several research papers have determined that people with high financial literacy are more thoughtful in their financial decision making.
Carlin et al. H Financial Literacy positively influences Behavioural Intention to use cryptocurrencies. The demonstrated relations among the examined variables are based on literature analysis of related theories. Hypotheses were developed to establish a connexion between research variables. The identified variables were used to construct a connexion, which will be translated into a theoretical framework Figure 1 in order to acquire findings from the hypothesis required for the model test.
According to Ghauri et al. The nature of this study is quantitative to examine the relationship between variables. As in this study, the relationship between variables examined on the basis of previously proposed theories, models, and hypotheses, quantitative research is, therefore, suitable for this study Cooper et al. Similarly, Creswell and Creswell suggested that quantitative research design is the most effective means of evaluating hypotheses and is good for analysing the connexion between groups and rationalisation of interdependence among variables.
In quantitative research, statistical approaches are used to collect data for hypothesis formation, testing, and for similar interpretation Sathishkumar et al. The researcher used a cross-sectional questionnaire survey approach to collect data to investigate the topic of cryptocurrencies adoption in Pakistan's business institutions and the factors that contribute to it as suggested by other researchers Veal, ; Hair et al. With Cryptocurrencies, known as digital currency based on blockchain technology, as indicated in the introduction, it is necessary to have a minimal degree of technical and financial expertise to comprehend the way to work with it in fundamental terms.
Thus, this study focused on adults, who already graduated or are studying in business schools or universities, and investors in order to gather data as they are the most engaged, informed, and valuable current or potential investors of financial markets.
The cluster area sampling technique has been used for the collection of data in this study. The main reason is that the simple random sampling technique is not convenient due to the law and order situation in the COVID pandemic; it has been difficult to visit all the universities of Pakistan Rathakrishnan et al. As a result, the survey was confined to a certain location that was chosen at random.
Secondly, the university-wide enrolment list of students and faculty members is not updated on the official website of Higher Education Commission of Pakistan nor is it available at the registrar office of public business schools. Thirdly, the cluster area sampling technique is used because it is the most cost-effective and time saving technique as compared with other probability sampling techniques. According to Chomeya , a 7-point Likert scale is the best utilised approach for social and behavioural sciences research scaling.
The Likert scale was meant to determine to what extent people agree or disagree with a given declaration Sekaran and Bougie, The design of the questionnaire is formulated by using a 7-point Likert scale by providing more choices or options for purpose of capturing more variability in respondents' feelings and attitudes. However, a number of studies have claimed that the 7-point scale is better—one of the main reasons being that it minimises respondents' misunderstanding Fornell, ; Solnet, To measure perceived risk, a 3-items scale was adopted Arias-Oliva et al.
A 3-item scale was used to measure the financial literacy in the study by Hastings et al. The sampling process aimed to gather data from the selected population instead of collecting data from every demographic component Cooper et al. Hair Jr et al. Therefore, the needed sample size of the present study is minimum In addition, few pieces of research on universities have been carried out by selecting business graduates, academics, and investors for the study sample.
In practise, a larger sample size is preferred to prevent non-response distortion Sekaran and Bougie, We requested respondents for the survey, yet only respondents turned in their responses a Lastly, because it was an online questionnaire with set parameters, there were no missing data. The profile of the respondents is presented in Table 2. PLS is a well-established approach for the estimation of the path coefficients of the structural models Ali et al.
Because latent models can be constructed using small to medium samples under non-normality, the PLS approach has grown in popularity in management and marketing research over the last decade Chin, a. In this study, by using four criteria i. Figure 2 represents the measurement model:. For internal consistency dependability, Hair Jr et al. The study revealed that all Cronbach's alpha and composite reliability values were above the threshold of 0. Table 3 shows the results for internal consistency reliability.
Table 3. Indicators loadings, composite reliability, and average variance extracted of latent variables. The amount to which an item belonging to one variable represents the same concept is known as convergent validity Fornell, When the value of AVE is 0. Table 3 indicates that the value of all item loadings exceed 0. CR values were higher than the suggested 0. The discriminant validity of a measure refers to how effectively it is not a reflection of other factors Ramayah et al.
When a variable is observed to be distinct from other variables, it is said to have discriminant validity Duarte and Raposo, For the purpose of evaluating discriminant validity, this study used both criteria. Tables 4 , 5 demonstrate that the square root of each construct's AVE diagonal values is greater than its associated correlation coefficients, suggesting sufficient discriminant validity Fornell and Larcker, Furthermore, as demonstrated in Table 6 , results show that the loadings on each indicator's own construct are always larger than the cross loadings with other constructs.
As a consequence of the cross-loadings criteria, the results show discriminant validity between all constructs. Model fit Table 7 is assessed using two valid metrics in PLS-path modelling. Henseler et al. The proposed range of SRMR values is 0—1. For a well-fit model, a value less than or equal to 0. It shows that the model in question is appropriate.
The NFI is 0. Tenenhaus introduced another diagnostic tool, the goodness-of-fit index GOF , which may similarly be used to assess model fit. According to the recommended GOF value, data corresponds perfectly with the suggested value 1 Tenenhaus et al. For better understanding, the GOF values are split into three groups.
If the figure is 0. Table 8 shows the results of the current study's Goodness of Fit examination. The structural model evaluates significance level of path coefficient, coefficient of determination R 2 , model predictive relevance Q2 , and effect size f 2 Shmueli et al. The statistical significance of the weights of sub constructs and the path coefficients was evaluated using a bootstrapping approach Chin et al.
The structural model's hypothesised connexions were tested after the measurement model and goodness-of-fit were evaluated. Figure 3 represents the results of structural Model. The explanatory strength of the model can be assessed with R 2 Wasko and Faraj, The quality and accuracy of the model are determined by the coefficient of determination R 2 Hair et al. The extent of variance in the dependent endogenous variables is caused by one or more independent exogenous variables Hair et al.
Chin b reported that R 2 is categorised into three categories: weak 0. Table 9 shows the results of the coefficient of determination R 2 values. Perceived ease of use explained Perceived usefulness predicted Perceived usefulness and perceived ease of use, together, predicted Figure 3 also indicates the explanatory power of the predictors variable s on each construct is shown by the adjusted R 2 values.
The f 2 can be determined by eliminating predictor constructs from the path model, changes the R 2 level, and demonstrates whether it is significantly impacting the criterion variable to remove a predictor construct Chin, b. Cohen's effect size f 2 is broken down into three classes: weak 0. As mentioned in Table 10 , the effect sizes for computer anxiety and computer self-efficacy are 0.
Subjective norm and Perceived ease to use have effect size value 0. The effect sizes for financial literacy, perceived ease of use, perceived risk, and perceived usefulness on behavioural intention to use are 0. Hence, following the guidelines of Cohen , the effects sizes of these four exogenous latent variables on behavioural intention to use could be viewed as strong, weak, none, and moderate, respectively.
According to Chin et al. The Geisser-Stone blindfolded test is often used for Q 2 computation. Q 2 illustrates how effectively gathered data may be empirically reformed using the model and the PLS parameters, based on the blindfolding technique. It also evaluates the performance of the model Rigdon, ; Sarstedt et al. According to Sattler et al. Chin b split Q 2 into three sections. The Q 2 with a value of 0.
Whereas, the 0. As shown in Table 11 , Q 2 for perceived ease to use, perceived usefulness, and behavioural intention to use indicate acceptable predictive relevance. In order to find significant path coefficients, all the hypotheses of this study were investigated by using P-statistics under 0. The path coefficients of structural relations have been calculated and the findings are illustrated in Table The entire findings of the structural model and hypothesis testing are presented in Table According to the current study finding, Perceived risk has no negative influence on behavioural intention to use.
Bootstrapping is one of the most rigorous and robust techniques to evaluate the mediation effect, and it is gaining traction among academics Hayes, ; Zhao et al. The current study used Smart PLS 3. Both direct and indirect outputs are examined for PU resolution. Although many studies have been conducted on cryptocurrencies perspectives and challenges Bonneau et al.
However, literature review reveals an area that has hardly been explored: factors influencing the investors' behavioural intention to adopt or use cryptocurrency in emerging economies. This research has been conducted as a contribution to fill this gap in the literature.
Moreover, an extension of the technology acceptance model TAM3 , which is considered the most appropriate model to study the behavioural intention of users toward new technology, has been used concerning cryptocurrency. The previous studies on factors affecting cryptocurrency usage have not applied to this model to examine their variables.
The rapid rise and adoption of cryptocurrencies warrants research on the factors that influence the investment behaviour regarding their adoption so that better and enticing cryptocurrencies can be developed. The study empirically contributed to a number of known linkages between variables, which were evaluated both directly and indirectly to respond to the research gap and to achieve the relevant research objectives set forth in the introductory chapter of the present study.
This research has keen-sighted the relations between the variables influencing the investors' behaviour in the adoption of cryptocurrency. All the variables studied in this study are most appropriate to the structure of the cryptocurrency. This study is expected to encourage future academics to uncover other characteristics beyond those described in this study as bitcoin has a lot of potential to be studied.
Firstly, we are concentrating on a very narrow subset of the population, namely, adults in business universities including investors, with some basic technological knowledge and Internet understanding. Despite our discussion of this choice, future research should be focused on different sectors to obtain a wider understanding of the acceptability of cryptocurrencies in society.
The long-term sustainability of cryptocurrency and bitcoin mining is another concern for future studies. According to this research, sustainability issues can influence the growth of cryptocurrencies. Technology and the knowledge of financial technology will continue to change shortly. In the future, a longitudinal study should, thus, track the rise of cryptocurrency acceptability and try to update the model to current conditions.
Given the current stage of technical development, both investors and customers consider running or investing in new technology assets to be highly dangerous. The perceived risk related to cryptocurrency transactions is quite high. Therefore, it should be a preliminary requirement for cryptocurrencies in the future to resolve this issue. The performance of a new cryptocurrency's product and service or current cryptocurrency innovation projects should be prioritised as the most important element in influencing acceptance.
To guarantee that potential investors perceive this value, cryptocurrency must be developed into a high-value-added service for clients, requiring significant marketing efforts. As a cryptocurrency adds value, it will be utilised more frequently. The cryptocurrency market is recommended to focus on its usefulness for investors. Moreover, all have an important effect, such as the technical know-how and technical resources required to perform cryptocurrency's operations, an investor's compatibility with technical necessities in cryptocurrency, the presence of widely agreed operating standards, as well as easy access to a support office in the event of a problem.
Cryptocurrency can be viewed as a viable alternative to conventional financial services, as it can be used for both transactional and speculative purpose and is aimed to be used by a wide range of people, from aspiring entrepreneurs to investors. The decentralised architecture and peer-to-peer characteristics of the blockchain technology are highly regarded for cryptocurrency adoption.
This study concludes that the technology acceptance model factors such as subjective norm, computer anxiety, computer self-efficacy, perceived usefulness, perceived ease of use, and experience as a moderator influence the behavioural intention of investors and business-educated people in public universities of Pakistan to use cryptocurrency.
While, in the current study, moderating role of experience between subjective norm and perceived usefulness, computer anxiety and perceived ease of use, as well as perceived ease of use and perceived usefulness has not been established. Moreover, perceived risk has influenced the behavioural intention of investors and business-educated people in public universities of Pakistan to use cryptocurrency.
This study has revealed that perceived risk does not negatively influence adoption of cryptocurrency, while financial literacy has a positive and significant impact on the adoption of cryptocurrency. The investors considered the cryptocurrency as an opportunity and related it to their productivity and effectiveness. They perceived that using cryptocurrency is free of effort, clear, and understandable.
Ethical review and approval was not required for the study on human participants in accordance with the local legislation and institutional requirements. Written informed consent for participation was not required for this study in accordance with the national legislation and the institutional requirements.
All authors listed have made a substantial, direct, and intellectual contribution to the work and approved it for publication. The authors declare that the research was conducted in the absence of any commercial or financial relationships that could be construed as a potential conflict of interest.
All claims expressed in this article are solely those of the authors and do not necessarily represent those of their affiliated organizations, or those of the publisher, the editors and the reviewers. Any product that may be evaluated in this article, or claim that may be made by its manufacturer, is not guaranteed or endorsed by the publisher.
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Kishore, S. An empirical investigation on mobile banking service adoption in rural Karnataka. The cost of mining differs from the hardware performance. It is reported that the generation of electricity from mining cryptocurrencies ranging from 10MW equivalent to a small power plant to GW the estimated energy consumes by small to medium size country such as Bangladesh and Denmark Vranken, Vranken stressed on the sustainability aspect of cryptocurrencies.
He explored that the proof of work in mining these digital currencies is consuming high energy and requires intensive computer capabilities. Nevertheless, these sophisticated computers which include CPUs, GPUs is necessary in mining within the blockchain to prevent double spending that revolve around the security aspect. It is expected that the mining activities will be slowed down within the next decade, and only those with a substantial up-to-date hardware will survive in the mining business and the ability to reduce cost of electricity consumption.
Becker et al. Due to a vast majority of these currencies adapting proof of work, it requires consuming large amount of power due to the mathematical work by the hardware involved. This is especially harmful in large scale mining activities. This in turn, will make mining cryptocurrency as the villain contributing to emission of carbon dioxide and would destroy the earth through global warming.
More studies on the effect of cryptocurrency on the environment should be studied. It is not worth sacrificing the earth for a short-term profit. If proven that the mining process would do more harm than good, the governments or even the United Nation should intervene in ensuring the environment will not be jeopardized.
According to Fama an efficient market is where past information is available that can fully reflect the prices of its history. Cryptocurrency is said to be a weak form of commodity because investors are not able to predict the future prospect because there is no available information from the past Urquhart, This is true since the inception of cryptocurrency has only emerged in , nearly a decade ago.
An investment in this short length of time surely has no past records and investors cannot rely on the history to ensure the investment can be profitable. Fry and Cheah and Urquhart postulated that, if cryptocurrency have true form of account and storing value, it would not be so volatile. Such as facing risk of crashes and bubbles.
It is anticipated that cryptocurrency would reach its bubble face in the near future. Despite this, no real bubble that would ultimately diminish Bitcoin or any other cryptocurrency had actually happened. The volatility returns for monthly average for cryptocurrency as in Bitcoin is much higher gold. On the other hand, the monthly highest volatilities for gold and other currencies are higher than the lowest monthly volatilities for Bitcoin Dwyer, This volatility in Bitcoin provides the indication that cryptocurrency would be a non-confidence commodity for long term investment.
It provides the opportunity for bubble and crash to happen according to this trend of volatility according to Dwyer Cheung et al. The biggest scandal in this bubble tragedy had cost the Mt Gox exchange Yermack, Prior research has shown that speculation can lead to assets being destabilized Blau, The volatility possessed by Bitcoin price shows that it is driven by trading marred by speculation.
The speculation can possibly eliminate its status as viable currency. This was a clear sign of asset bubble. Due to only limited people using Bitcoin as the main cryptocurrency today, it is difficult to assess it as fair a value Bariviera et al. There is no account required to trade Bitcoin without any interest rates. Worldwide, there are approximately less than retailers who accept Bitcoin as mode of payment Yermack, This uncertain application of Bitcoin might lead to scam and other scheme that can lead to lost in monetary investment.
Investors would like to make profits from cryptocurrency, seeking for their potentially saving them from any risks of speculation Li et al. It is anticipated that bubbles would eventually occur when the authorities and economic policy intervene by not favoring the cryptocurrency, as evident from the minor Bitcoin bubble burst in several cases reported above.
Kshetri posited that technology of the blockchain having decentralized feature has low susceptibility and security. It opens the door to manipulation and forgery. The blockchain technology has many challenges regarding its identity and access management system related to Internet of Things IoT. The mining activities using pool creation are vulnerable to two types of attack. It is either by malicious pool members or pool operators.
A Sybil attack targeting on the network can be done by the malicious pool operators by combining the resources in their pool. While malicious pool members can potentially increase the computational power in a particular mining pools and later in the future, destabilize it. These users hop from one pool to another in order to sabotage the pools mining returns and withholding the effectiveness of the mined block Conte De Leon et al.
Another shortcoming of cryptocurrency is the attack on the code-based. This network is now maintained by a core group on the open source through the Github. An attack had already happened in June , where the Bitcoin nodes were attacked by an unknown attacker on its path that relayed the information on the network that did not involve in mining activities Bradbury, As the history showed, future attack on the blockchain network is imminent. Although being successful so far, fraudsters will eventually find ways to attack on the cryptography network of the blockchain, if this issue of vulnerability is not earnestly addressed.
The critics surrounding cryptocurrency have been raised since the first day of its inception. The illegal activity accusation of cryptocurrency was realized when the Silk Road scandal has stopped its operation by the FBI. Silk Road was a popular market where users trade using Bitcoin.
Silk Road was accused as a platform for business involving drug and other illegal activities. But, according to Alstyne , the shutdown of Silk Road was not the fault of Blockchain nor cryptocurrency. Instead, it was the criminals and fraudster who had exploited this technology for their own lust for profits, just like other platform that can benefit them.
The second such case was the Mt Gox where it has lost money summed up to million dollars McMillan, One would have imagined, before a system is fully developed and becomes a trustworthy and robust technology, time factor is a huge consideration.
Cryptocurrency requires ample time before it can be used and applied by the mass people throughout the world. Even Paypal, the electronic payment system that was introduced in the year had several times been the target for fraudsters.
As the history of the Bitcoin is concerned, the bubbles are affected by the speculation and price drop was affected by the intervention by the government and central monetary agencies. Therefore, for the interest of the public in anticipating the benefits of the cryptocurrency, government should make a proper policies and regulation that can safeguard the public interest as well as main players in the economic market. A stabilized market would ensure that the fiscal policy of a country can be balanced without subduing the interaction from the central bank.
All this depends on how the government acts on the current cryptocurrency market, either favoring or diminishing its existence once and for all. It is the fact that every economist, researchers, investors alike has to act and considerable measures to strengthen their knowledge on the blockchain technology in general Fauzi et al. As cryptocurrency has not yet reached maturity in term of time frame, further studies on its technology, potential and risk should be studied to ensure that the opportunities are not just a mere fluke.
Also, the upcoming challenges do not mitigate stakeholders into the doldrums of financial failures. Security aspect of users warrants the ground-breaking testimonial from the players in this new industry so that the confidence and trust of the blockchain technology would allow it to be the norm for users in doing their daily transaction via the internet. In reducing the cost of mining the currency, a proof of stake would provide lesser energy consumption in mining these digital coins Vranken, In proof of stake methodology, a person needs to validate the coins that they own and the amount possessed.
The person needs to create a transaction of their coins that they send to their account as a reward with the information of predefined percentage. The proof of stake resembles a raffle-like scheme that provide the same chance for all miners. Furthermore, a hybrid method that consists of both proof of work and proof of stake had been suggested, by rewarding fraction of the proof of work to all nodes that are active and at the same time the stake determines the ticket gained to all raffle.
Bentove et al. In PoA, the activity term refers to active users that maintain the full online node and the one that should be rewarded. Contrarily, in proof of stake, offline users can still accumulate the coins over time and this can lead to double spending of the same block.
PoA provides much better security in facing future threat on the cryptocurrency. It has a bigger storage space and the network communication permits low penalty. Plus, PoA also has low transaction fees, consuming less energy and the topology of the network can be improvised. Thus, PoA alternative serve as a better platform for cryptocurrency due to its ability to fend of double spending and most importantly the cost in acquiring the cryptocurrency compared to proof of work.
The market has been plunged with many new cryptocurrencies that had already made it into the market and there are many still waiting to be released. There have been many emerging currencies that are challenging and competing Bitcoin in term of its price and market capitalization.
Even though at the time of writing, only Ethereum and Ripple had reached three figure prices. Bornholdt and Sneppen proposed a model called Moran process on new emerging cryptocurrency. The model does simulation on the market where the currencies are traded. The model is able to simulate the constant rate of new mined coins, trading activities of the agents and the communication among users trading on the markets Cocco et al.
All the currencies are interchangeable among themselves, with the acknowledgement of the account holders. It was also found that Bitcoin can be traded with other coins and the future might see that the highly warranted Bitcoin be replaced by other fascinating coins that may have better features.
Therefore, studying on these features such as security, return on investment and low mining cost can determine which of the new and emerging digital coin can replace Bitcoin in the near futures. Future work on using the proof of work has been discussed in Becker et al. One of it is to maximize the byproduct of the proof of work by reusing it. Reusing this byproduct in the sense that the resource in solving any mathematical puzzle by an already awarded user can reuse it by rewarding other user from the formulated solved problem.
Another suggestion is to use the energy generated by the mining process from electrical energy to heat energy. This can be realized in cold climate countries, where the considerably high heat energy released from the computation of solving the mathematical puzzle can be used to heat residential houses and other household chores requiring heat energy.
Dyhrberg has found that Bitcoin is able to hedge against the financial stock market and the US dollars. It was posited that similar to gold that does not depend on the central authority, Bitcoin can diminish any risk in the market.
This indicates that Bitcoin has a clear and potential in the portfolio analysis of the world stock market, as well as its low risk management. Dyhrberg further suggests that Bitcoin and gold are efficient instrument in reducing the risk in investment. Although this statement is still rather premature in valuing Bitcoin as the same par as gold, the potential is there and opens the floodgate to the possibility for future research.
It is realized that having considerable knowledge in the blockchain technology would be essential in controlling the negative impact of using cryptocurrency in day-to-day activities Fauzi, Knowledge management among industry players and researchers should be enhanced to make the people understand the potential and risk in using cryptocurrency.
Even experts from the institution of higher learning should be engaged with the public as they have the knowledge resource that facilitating the community in having better knowledge on certain issues Fauzi et al. Cryptocurrencies are here to stay. The future of trading lies well with new emerging technologies that are able to benefit mankind. Needless to say that, users and industry player can evaluate whether cryptocurrency can benefit or harm them, in accordance with their objectives and perspectives in owning it.
This paper has reviewed the opportunities in cryptocurrency in term of its security of its technology, low transaction cost and high investment return. For the challenges, the discussion revolved around law and regulation, high energy consumption, possibility of crash and bubble, and attacks on network. The improvement and future work on cryptocurrency include improving the security protocol, working on proof of activity, using the byproduct of proof of work and applying the knowledge management system.
Looking at the positive outlook of the blockchain technology and the prospect of government in regulating cryptocurrency, more in-depth studies on several aspects of cryptocurrency should be done. Taking the opportunities from part of the pie in the cryptocurrency and blockchain technology can be beneficial for researchers.
From then, application in using cryptocurrency in the best of its ability would be one of the most prominent discoveries in the 21st century. Click here to choose a searching target image or drag and drop a searching target image. Article Info. Abstract Bitcoin and other prominent cryptocurrencies have gained much attention since the last several years.
Keywords Cryptocurrency ; Blockchain ; Mining ; Investment. Introduction Since the inception of the fiat money, people have been using it for everyday transaction. Background and History Nakamoto introduced Bitcoin in and had initially brought up 50 Bitcoin in circulation. Mining and the Blockchain System How was cryptocurrency initially gained or received?
Critics of Cryptocurrency There have been considerable critics of cryptocurrency, one of them is whether it is a form of an asset currency. Opportunities and Advantages Being a relatively new commodity, the opportunities of cryptocurrency looks promising. Secure Technology The blockchain is deemed to be one of the best platforms and most sophisticated technology since the discovery of the internet. Cost of Transaction Throughout history, people have been using some kind of monetary form for day-to-day transaction.
High Return The distinctive features of cryptocurrency and its ability to suit to economic function making it a unique asset Briere et al. Challenges Despite the opportunities in cryptocurrency, there are still many challenges waiting to be faced by the cryptocurrency. Electricity Bills Apart from the initial cost of investing in the hardware, other main expense a miner has to pay is the consumption of energy Hayes, Crash and Bubble According to Fama an efficient market is where past information is available that can fully reflect the prices of its history.
Attack on network Kshetri posited that technology of the blockchain having decentralized feature has low susceptibility and security. Discussion The critics surrounding cryptocurrency have been raised since the first day of its inception. Conclusion Cryptocurrencies are here to stay. References Ali, R. The economics of digital currencies. Bank of England Quarterly Bulletin, Evaluating user privacy in bitcoin. Angel, J. The ethics of payments: Paper, plastic, or Bitcoin?
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