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Journal ​What is the definition of Cryptocurrency and how does it works?


Goal :
- King will research about could cryptocurrency replace cash in the future
The article said it’s possible for replacement of cryptocurrency to the cash but it isn’t
that easy due to their decentralized and unregulated status
Cryptocurrencies could better support the concept of a “universal basic income” than
fiat currencies ( money that made by orders of the government such as paper money and
coins ).
Nowadays cryptocurrencies could help to get rid of intermediaries in transactions
which could cut costs for some businesses.
There are some possible concerns if cryptocurrencies can replace cash in the future,
traditional currencies will lose value, it takes time for the world to adapt, not quickly as cash,
some financial institutions would change their in someway, and this can affect on
Government financial control, the governments could no longer take a control as the
cryptocurrencies replace cash that they used to control or orders. Moreover, the coins would
be dependent upon independent mining operations.
Some investors think that the cryptocurrencies could be overblown in the future but
as it changing all the time so the prediction is hard though.
I achieved my goal for today and for next class I will find about how is the price of
cryptocurrencies defined.
Goal :
- Mega will research about “ Where can we purchase cryptocurrency” ?
You can buy a cryptocurrency from the coinbase. Coinbase is that application for buying
cryptocurrency. This coinbase is the easier way to for people who want to buy bitcoin, Cash
ether, Litecoin. The popular digital exchange is easy to use and alway keep it online. From
this app you can connect the debit or credit card to the app and start buying and selling. The
chart will show how the bitcoin rise and fall. You can see the real price of cryptocurrency that
you want to buy by put the amout of cryptocurrency that you buy and it will show how much
the us dollar you need to spend. Each type of cryptocurrency do not have the same price.
Buy a cryptocurrency with Kraken. Kraken application is a little more complicated
than the base coin
Journal ​What is the definition of Cryptocurrency and how does it works?

Goal: Mega will research about how to cryptocurrency mining.

Focus on mining 'scrypt' coins, namely Litecoins, Dogecoins, or Feathercoins.

The whole focus of mining is to accomplish three things:
First thing - provide bookkeeping services to the coin network. Mining is essentially
24/7 computer accounting called 'verifying transactions'. Second thing, get paid a
small reward for your accounting services by receiving fractions of coins every
couple of days. Last thing is keep your personal costs down, including electricity and

Ten thing you need to prepare for mining cryptocurrency.

1. A free private database called a coin wallet
2. free mining software package
3. membership in an online mining pool
4. Membership at an online currency exchange
5. A reliable full-time internet connection
6. hardware setup location
7. desktop or custom-built computer designed for mining.
8. An ATI graphics processing unit (GPU) or a specialized processing device
called a mining ASIC chip.
9. A house fan to blow cool air across your mining computer.
10. Personal curiosity.

Reflection: I achieve my goal for today and I think to research about type of cryptocurrency
in next classes


Goal: King will research about how is the price of cryptocurrencies defined ?
Journal ​What is the definition of Cryptocurrency and how does it works?

The value of cryptocurrencies can change all the time and it change very fast. As we
know long-term value of digital currencies will determined many factors such as true mass
adoption the real value, and government and central bank also affect on the value in which
critical factor.
All of these combined factors make it difficult to predict the price of cryptocurrencies.
However, It very interesting for traders and investors in the market everyday.
Reflection: For this topic, It confusing me and it’s hard to understand though.


Goal : King will research on “How will banking and credit work in cryptocurrency economy?”

Firstly we’ve to know the three functions of the banks that have provided since the
ancient world which are “warehousing”, it’s for providing safe storage for money itself
because people need a safe place to store their money.
Second, “loan function”, this is the origin of fractional-reserve banking. The more
credible the warehousing function becomes, the more the bank is in the position of its
credit-granting functions. The bank can’t pay all depositors on demand but it based on how
relies on financial and rate of return for depositors who entrust the bank to the responsibility
of maintaining its balance sheet.
Third, “clearing system”, as we know there is always some risk of the counterparty in
such transactions. The bank and the depositor must trust each other to tell the truth and
make a good promise. In the period between the transaction and the clearing, money
becomes a credit issued and accepted based on trust.

Reflection: This topic is quite complicated for me because of many details and vocabulary
that I couldn’t define by myself but I’d understand some information of its at the end.

Goal : Mega will research on “Type of cryptocurrency”.
Journal ​What is the definition of Cryptocurrency and how does it works?

First cryptocurrency that most people knew is Bitcoin.

There is many type of blockchains were created, these are called ​altcoins​. NEO, Litecoin
and Cardano are solid examples of altcoins. Finally, ​tokens/dApps,​ Its the third main type of
cryptocurrencies. Examples of these include Civic (CVC), BitDegree (BDG), and WePower

Bitcoins is the digital money that is not real like the dollars money but it is in digital. Bitcoins
also ​decentralized​, meaning it doesn’t rely on a bank or third party to handle it, this make
bitcoins different. Because you don’t need third party, you do not need to identified yourself
which you can make payment without revealing who you are.

Reflection: In the next period, I will research about Bitcoins work.


Goal: Mega will research about how does bitcoins work.
When someone sends Bitcoin, the transaction is verified and then stored on the
blockchain (the shared database). The information on the blockchain is encrypted which
make everyone can see it but only the owner of each Bitcoin can decrypt it. Each owner of
Bitcoin is given a ‘private key’, and this private key is how they decrypt their Bitcoin.

Blockchains are run by lots of different people and companies and they run by using
computer power. They run special software on a computer that process transactions on the
blockchain.The computers that used to run the software are called ‘nodes’.

Running this software uses a lot of electricity. The nodes are rewarded for verifying
transactions with new Bitcoin. This is how new Bitcoins are created.

When a new block of transactions is sent to the blockchain, the miners/nodes will verify the
block using an algorithm called PoW (Proof of Work). In PoW, the first miner to verify the
block is rewarded with new coins.

Journal ​What is the definition of Cryptocurrency and how does it works?

- Bitcoins is the digital money that do not need the third party to make transaction and
do not need to identifield yourself.
- When sending bitcoins the transaction is verifly and safe in blockchain. It encrypted
for every on but only for owner can encrypted by their private key.
- Blockchain is run by lots of people and companies. By using computer power that
have special software, called nodes, can do the transaction and mining bitcoins.
- Bitcoins are created by nodes that are rewarded for verifying transactions with new

Reflection: For today, I found how does bitcoin work which I will research about altcoins in
the next period.

Goal: King will research about “definition of cryptocurrencies and examples”

Cryptocurrency is a type of digital currency that use cryptography for security. It’s a
flait currency which means users must reach a consensus about cryptocurrency value,its
value isn’t controlled by a central bank
Cryptocurrency transactions are anonymous, lacking and have created a niche for
illegal transactions, drug trafficking because there is no central repository, law enforcement
and payment processors have no jurisdiction over bitcoin accounts.

Reflection: I have achieved my goal for today because this topic is easy to do the research.


Goal: Mega will research about the effects of cryptocurrency to the economy.
- Challenging the dollars standard:
The effect of the cryptocurrency to US dollars is decentralized the financial transaction.
Because US dollars is the major currencies of the world. If the US dollars changing, then it
will affect many countries too.
Journal ​What is the definition of Cryptocurrency and how does it works?

- Better acceptance:
Many industry, Investor and online shopper that using cryptocurrency are increasing over 1
million wallets since 2016. It also have online casino which using cryptocurrency. This made
cryptocurrency is more general for our life.

- It has cut middlemen

Cryptocurrency causing a huge impact on the global payment. The ecosystem of the
international financial transfer transactions and the mainstream financial environment require
the entities such as bank. This mean if there is no SWIFT network the global transaction will
not work.

- The emergence of new markets.

The cryptocurrency such as Bitcoin have led the new market and take control of it which
made cyberspace rising and it made almost zero transaction cost. This made the
cryptocurrencies become more popular than the traditional money and more people want to
using it.

- It simplify the crowdfunding process

With the Initial Coin Offering (ICO), developers and entrepreneurs no longer want to waste
time trying to convince banks, venture capitalists and angel investors to put up equity in their
business. Once an idea has been conceptualized the tokenized and then taken to the public.
This will increased technology the base of business.

Reflection: I found what I need to research and in next class i will plan for what do I need to
do for the product.

Goal: King will do the research about “advantages and disadvantages of cryptocurrency”
Advantages of cryptocurrencies, it isn’t only good in a business way but the buyer
themselves. There are many advantages and here are some examples:
1. Easy access - cryptocurrencies are available to the general public which means
almost everyone in society can use it.
Journal ​What is the definition of Cryptocurrency and how does it works?

2. Quick and easy payments- making payment is very easy. We can make the payment
in a few seconds, we don’t need to fill many details. We just need the address of the
wallet of the person or enterprise whom you want to make a payment.
3. Private- We don’t need to share our details of the transaction and information isn’t
required to share with the government and the bank.
4. Highly secured - all of the transaction will be secure as it is using NSA created
5. No third party - We can use money as we wish because the bank doesn't exist in our
transaction or payment.
There are many disadvantages also and here are some examples:
1. Difficult to understand - cryptocurrencies are new and come with the learning curve.
People may lose money because they don’t understand clearly what are they trying
to do.
2. Lack of knowledge - The technology is very complex. People aren’t aware of how to
use cryptocurrencies and hence open themselves to the hacker.
3. Can lose your wallet - It is possible to lose your wallet. If you forget your password or
lose your devices then you lose your wallet.
4. No way to reverse the payment - you can’t get a refund of the amount that you paid
to someone.
5. Uncertainty and Volatility - Cryptocurrencies are very volatile which means many
corporations don’t want to make any deal because of the swings in volatility

Reflection: For today, I accomplished my goal. I got all of the information that I want which is
a good point.

Goal: King and Mega will plan what we going to do for the product.

For the product we will do a infographic of cryptocurrency

Journal ​What is the definition of Cryptocurrency and how does it works?

- Cryptocurrency replace cash in future.

- Where can we purchase cryptocurrency.
- How to cryptocurrency mining
Journal ​What is the definition of Cryptocurrency and how does it works?
When Cryptocurrency was invented ?
● Late 2008

Who invented cryptocurrency ?

● Satoshi Nakamoto
● He did the announcement in 2008
● He called it “ a peer to peer electronic cash system”
● He did it because he wanted to create something that people failed to do, before
digital cash
What is Cryptocurrency ?
● Cryptocurrency is a digital money that created from code
● The cryptocurrency economy is monitored by a peer to peer internet protocol

What can you do with cryptocurrency ?

● Cryptocurrencies can be used to pay for manythings for examples used to pay for
hotels,flights,jewellery,apps,computer parts and even college degree.

Where can we purchase cryptocurrency ?

● There are two main ways, Buy bitcoin through coinbase and without coinbase but
through Karken ​which supports Bitcoin and Ether, along with smaller currencies
like Ripple and ​Stellar​.