Assignment # 2

Assignment N0 #2

Topic:

Literature review of Cryptocurrencies.

Reg No:

L1S20BSAF0024(M.UMAIR AKHTAR).

Course:

Research Methods in Business.

Section:

(A)

Institution:

Department of Management sciences, University of central Punjab.

(UCP).

Submitted to:

Sir Numan Yaqoob.

1
 Assignment # 2

Cryptocurrencies have become an increasingly popular topic in academic research

since the introduction of Bitcoin in 2009. The following is a brief literature review
of some of the key findings in this area:

1. Definition and Features of Cryptocurrencies: Cryptocurrencies are digital or virtual

currencies that use cryptography to secure transactions and control the creation of
new units. They are decentralized and often use blockchain technology to maintain
a public ledger of all transactions. Cryptocurrencies have the potential to eliminate
intermediaries in financial transactions, reduce costs, and increase financial
inclusivity.
2. Adoption and Usage of Cryptocurrencies: While the adoption of cryptocurrencies
has been steadily increasing over the past decade, their usage remains largely
limited to speculative trading and investment. Some studies have shown that the
volatility and uncertainty surrounding cryptocurrencies have hindered their
widespread adoption as a means of payment or store of value.
3. Regulatory Framework: The regulatory landscape for cryptocurrencies remains
complex and fragmented. Some countries have banned their use, while others have
taken a more proactive approach by developing regulatory frameworks to govern
their use. The lack of uniform regulations has made it difficult for businesses and
consumers to fully embrace cryptocurrencies.
4. Financial Market Implications: The emergence of cryptocurrencies has also had
implications for traditional financial markets. Studies have shown that the
introduction of Bitcoin futures contracts on regulated exchanges has increased the
efficiency of price discovery and reduced the volatility of Bitcoin prices.
5. Environmental Impact: The increasing popularity of cryptocurrencies has also
raised concerns about their environmental impact. The energy consumption
required for the mining of cryptocurrencies has been shown to have a significant
carbon footprint, with some estimates suggesting that the Bitcoin network alone
consumes more electricity than entire countries.

In conclusion, while the adoption of cryptocurrencies has been steadily increasing,

their widespread usage remains limited. The regulatory framework governing
cryptocurrencies remains fragmented, and their impact on traditional financial
markets and the environment continues to be a subject of debate. Further research
is needed to fully understand the potential of cryptocurrencies and their long-term
impact on the global economy.