CRYPTOCURRENCY IN COVID ERA

ZAINUB, UPES- Vth year, BTECH CSE + LLB CYBER LAWS

WHAT REALLY IS
CRPYTOCURRENCY?
• Cryptocurrency is decentralized digital money.
• Users had to give away too much personal data to 3rd parties.
• In 2008, when global capital system went down, Satoshi Nakamoto
introduced Bitcoin.
• This protocol set up rules to verify the data exchanged among billions
of devices without going through a trusted 3rd party.
In 2009, the first decentralised cryptocurrency, bitcoin, was established by apparently pseudonymous creator
Satoshi Nakamoto. It utilised SHA-256, a cryptographic hash function, in its proof-of-work mechanism.

• As of January 2021, there are over 4,000 cryptocurrencies in circulation. While

many of these cryptocurrencies have little to no support or trading activity, several
have devoted groups of backers and investors.
How it works?
FAMOUS TWITTER SCAM-
• On July 15, 2020, a 17-year-old hacker and his accomplices broke
into Twitter's network and took control of dozens of high-profile
Twitter accounts.
• snatching one high-profile account after another and tweeting a
“double your bitcoin” fraud.
• The hackers hacked into the Twitter accounts of politicians, celebrities,
and business people, including Barack Obama, Kim Kardashian West,
Jeff Bezos, and Elon Musk, as well as the Twitter accounts of several
cryptocurrency firms authorised by the New York State Department of
Financial Services.
• the hackers took almost
$118,000 in bitcoin.
 THODEX SCAM
• cryptocurrency exchange company of
Turkey, THODEX
• defrauded 3,90,000 investors of
estimated $2 billion.
• investors got to know after unable to
access their assets.
• Founder- Faruk Fatih Ozer fled
Turkey.
• deletd all his social media accounts.
• Turket banned cryptocurrency.
 RISE IN VALUE-COVID ERA

• The link between Bitcoin and the stock market has risen since the
coronavirus epidemic.
• On March 12th, the price of Bitcoin plummeted below $4,000
following a dramatic drop in the S&P Index in the United States.
• Due to quick flight to liquidity, and as a result, many investors had
Equity margin calls that had to be covered by liquidating other assets
like Bitcoins into cash.
• Interests of top businessmen and enterpreneurs. Ex Elon musk after his
tweet that his company would accept bitcoin as a payment for tesla
cars.
• One of the top cryptoexchanges in US,COINBASE got listed on
NYSE, which gave huge boost to furture of crptocurrencies it’s value
by 15-20%.
• By April 2021 it’s value was $63,000 but currently it is $35,000.
 DEPRICIATION-
• Elon Musk tweet- won’t accept
cryptocurrency anymore -
increasing environmental hazards
(masterstroke or what?)
• China banned it.
• No regulatory body in India, to
monitor trade of cryptocurency.
• Increasing scams- banned in some
countries
NFT- NON FUNGIBLE TOKENS
• A digital asset that depicts real-world elements like as art, music, in-
game items, and films . They're bought and traded online, often using
cryptocurrency, and they're usually encoded with the same software as
many other cryptos.
• Each contains a digital signature that prevents NFTs from being
substituted for or compared to one another.
• similar to actual collectibles but digital. so rather than receiving an
actual oil painting to put on the wall, the customer receives a digital
file.
DISADVANTAGES-
• Only 22 million bitcoin could be mined in total and presently 18
million have been mined. will it regulate across world?
• mining 1 bitcoin consumes very high energy , mined on
supercomputers. envirnomental hazard?
• most no. of crpytos are mined in China.
• How to determine value of 1 bitcoin?
• Value fluctuates with tweets of top businessmen- like Elon musk then
how to determine the future.
 HOW COULD WE DETERMINE THE
FUTURE OF CRYPTOCURRENCY WITH
SO MUCH UNCERTAINITY?

THANKYOU...