Role of Blockchain and Cryptocurrency to Redefine the Future Economy

Abstract

The virtual currencies have practiced a steady process and carry on to experience it. In fact, these cryptocurrencies found a significant place in the society and are already integrated because more people make use of them as one of the payment methods for products and services. These cryptocurrencies are using not only payment purposes but also invest in them to increase the capital. Blockchain is a peer-to-peer distributed ledger of time-stamped transactions. The entire ethos was decentralized and away from all central banks. Hence, it is a pressure group against the centralization and the control of fiat money. The central banks are controlling the traditional physical currency but the cryptocurrency and block chain technology, the user maintains a copy of their ledger and all copies of other ledgers which are synchronized through a consensus algorithm. In the recent past, due to high publicity regarding the blockchain technology both private and public sector organizations have opened their eyes and looked at the technology. The researcher also made an attempt to analyze the market cap of the Bitcoin and ten other leading cryptocurrencies since October 2013. The prime objectives of the study are: a) to study the role and future developments of blockchain and cryptocurrencies. B) To compare the market cap of Bitcoin with other top ten prominent cryptocurrencies. In fact, as of April 2021 more than 4000 cryptocurrencies are in existence but many of these cryptocurrencies have very little market cap and no trading volume. Some are more popular and offer communities of investors and backers. Bitcoin is the pioneer among the cryptocurrencies and introduced in the year 2009. Correlation analysis is employed to compare the relationship between Bitcoin market cap and other ten cryptocurrencies. In fact, as of April 2021 more than 4000 cryptocurrencies are in existence but many of these cryptocurrencies have very little market cap and no trading volume. Some are more popular and offer communities of investors and backers. After well examining and based on the previous study the researcher has chosen ten important cryptocurrencies other than Bitcoin. It is practiced that the analysts and researchers rank the digital coins in terms of their market cap. Here the researcher has selected these coins not only in terms of market cap but there are some other reasons such as the stability and other special features of the virtual currency. Within a decade the blockchain technology reached almost all parts of the globe. At present people from an average income group are trying to save or invest their money in cryptocurrencies. Transparency, security, privacy, cross border payments, low cost, minimizing errors and no central agency to control are the main future of the blockchain. Once the price of Bitcoin is decreased or increased it will directly influence the other cryptocurrencies in the near future blockchain technology will be more efficient and redefine the future financial system of the world.