CRYPTO

CURRENCY
Understanding,Advantages and Disadvantages

PRESENTATION BY MUZAMIL & HAMNA

The first cryptocurrency was created by Satoshi Nakamoto, the anonymous computer programmer or group of programmers, on January 3, 2009.

UNDERSTANDING
Cryptocurrency is digital money that doesn’t require a bank or financial institution to verify transactions and can used for purchases or as an
investment. Cryptocurrency, or crypto, is a digital payment platform that eliminates the need to carry physical money. It exists only in digital
form, and although people mainly use it for online transactions, you can make some physical purchases. Unlike traditional money printed only
by the government, several companies sell cryptocurrency.

HOW ARE CRYPTOCURRENCY CREATED?

Mining is the term used to describe the process of creating cryptocurrency. Transactions made with cryptocurrency need to be validated, and
mining performs the validation and creates new cryptocurrency. Mining uses specialized hardware and software to add transactions to the
blockchain.
HOW ITS WORKS?
Cryptocurrencies Work using a teachnology called blockchain. Blockchain is a decentralized teachnology spread across many computers that
Manages and records transactions. Part of the appeal of this teachnology is its security.

ADVANTAGES OF CRYPTOCURRENCY
• Funds transfer between two parties will be easy without the need of third party like credit/debit cards or banks.
• It is a cheaper alternative compared to other online transactions.
• Payments are safe and secured and offer an unprecedented level of anonymity.
• Funds transfer are completed with minimal processing fees.
 DISADVANTAGES OF CRYPTOCURRENCY
• The almost hidden nature of cryptocurrency transactions makes them easy to be the focus of illegal activities such as money laundering, tax-
evasion and possibly even terror-financing•
• Payments are not irreversible.
• Cryptocurrencies are not accepted everywhere and have limited value elsewhere.
• There is concern that cryptocurrencies like Bitcoin are not rooted in any material goods. Some research, however, has identified that the cost of
producing a Bitcoin, which requires an increasingly large amount of energy, is directly related to its market price.

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