The Emergence of Cryptocurrency in the era of Digital
Business
History of Cryptocurrency
Bitcoin is a decentralized peer-to-peer electronic exchange. Bitcoin was
created out of the turkoil of the 2008 great recession as distrust of banks ( Lehman
Brother ). On the 4th of January 2008, the domain name bitcoin.org was registered.
An individual or a group of people going by the name Satoshi Nakamoto issued a
white paper to address the centralized control of money. Send money directly to
one another without a bank or third party as an intermediary. It would take more
than a year for the first economic transaction to take place, when a Florida man
negotiated to have two Papa John's pizzas, valued at $25, delivered for 10,000 BTC
on May 22, 2010.
What Are the Differences?
What distinguishes Cryptocurrencies from others
Fiat Money
Physical medium of exchange.
Represented by bills & coins. Represen
Unlimited supply. Government can
produce as needed.
Issued by a government.
Cryptocurrencies
Digital medium of exchange. ge.
Represented by 1 private and 1 public
pieces of code.
Limited supply. Each cryptocurrency has
a set maximum.
Centralized. Issued and controlled by law Produced by computers.
and banks.
Value determined by the market and Decentralized. Not controlled by any
regulation
government or entity. Value determined
by supply and demand
Types of Cryptocurrency
Cryptocurrencies have several types, namely:
Ripple, Bitcoin, Litecoin, BitShares, Stratic, Dogecoin, Ethereum, Zcash, Monero,
IOTA, ICON, NEM, Binance, Steem, Waves, Ark, NEO, BitConnect, Dash, Bytecoin.
Which Country Use The Most?
The Chainalysis 2021 Global Crypto Adoption Index Top 20 countries, based
on three metrics: Total crypto activity, trading activity of non professional users, and
Fer-to-peer exchange trade volume. All are weighted by purchasing power parity per
capita.
How Cryptocurrency Perform
Stock Market Performance 2020 (COVID-19)
 Jakarta Composite Index: -15%
 Dow Jones Industrial Average: 7.25%
 Nasdaq Composite Index: 43.64%
Stock Market Performance 2021
 Jakarta Composite Index: 10.08%
 Dow Jones Industrial Average: 18.7%
 Nasdaq Composite Index: 21.4%
Cryptocurrency Benefits for Businesses
 Reduce your costs associated with accepting customer payments, use
international banking for transaction.
 Grow your business by attracting new customers
 ULTRA LOW FEES Almost 0% fees for any transactions
 No intermediary and 3rd party. Instant Payment
 No Restrictions on Payments
Cryptocurrency Disadvantages for Business
Cryptocurrency volatile
 Price Fluctuation
 Unstable for Business, $1 today become $2 tomorrow
 Speculating trading
Not Widely Accepted for most business
 Fiat Currency is the mainstream
 Banned in China in 2021
 Illegal use for money laundering
 Illegal use for money gamel Ponzi Scam
Cybersecurity Risk
 Privacy issue for users
Lack of Trust, Not backed by Bank/ Government
 Government cannot control money supply
 Inflation cannot be coped Unable to stimulate economy
Factors That Cause Cryptocurrency Volatility
Influenced by Supply and & Demand
 Higher demand, higher price
Investor and User Sentiment
 Mining of Cryptocurrency
 Earning fast money
Media Hype- Tesla Motor
 Elon Musk creates story
 Media boost on profit gaining
Government Regulations
 Banned in country, price will drop
 Rejection/ discourage, price will drop
 Report to Government.
 New e-wallet issued by Government
Conclusion
"Cryptocurrency is a high risk currency compared to Fiat Currency. Issues
such as price volatile, lack of trust and not backed by Government has caused the
doubt in its sustainability. - OOI KOK LOANG
Cryptocurrency can be the alternative method of payment for business, but
may not replace Fiat Currency in near future".