Maresha N Crypto Currency Final

A CASE STUDY ON INVESTORS AWERNESS ON CRYPTO CURRENCY Submitted in partial fulfillment of the requirement for the award of the Degree of “MASTER OF BUSINESS ADMINISTRATION”

BANGALORE CENTRAL UNIVERSITY

Submitted by: MARESHA N Under the Guidance Of Prof. SEEMA SHETTY

VIVEKANANDA INSTITUTE OF MANAGEMENT Dr. Rajkumar road Rajajinagar Bangalore 560055 2019-2020

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CHAPTER- 1 INTRODUCTION INTRODUCTION Crypto currency, an encrypted, to peer network for facilitating digital barter, is technology developed eight years ago. Bit coin, the first and most popular Crypto currency ,is paving the way as a disruptive technology to long standing and unchanged financial payment system that have been in place for many decades .while crypto currencies are-connected global market interact with each other. Technology advances at a rapid rate, and the success of a given technology is almost solely dictated by the market upon which it seeks to improve crypto currencies may revolutionize digital trade market by creating a free flowing trading system without fees A SWOT analysis of bit coin is present, which illuminates some of the recent event and movement that could influence whether bit coin contribute to a shift in economic paradigms Wallets A crypto currency wallet stores the public and private “keys” or “address which can be used to receive or spend crypto currency with the private key , its is possible to write in the public ledger ,effectively spending the associated crypto currency with public key its possible for other to send currency to the wallet .

DEFINING THE CRYPTOCURRENCY A bitcoin is a virtual currency first introduced in the year 2008 by an anonymous group called Satoshi Nakamoto. It’s an open source peer-to-peer cryptographical system (direct connections without an intermediary) where transactions happen through a public ledger called blockchain, handling users’

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data anonymously. Eight years since its introduction, bitcoin is today the most widely used and accepted digital currency. Bitcoins are the most sought after cryptocurrency in the market. However there are several other currencies which have gained momentum ever since the concept has been introduced. Below are some other of crypto currencies that exist: 1. Ethereum – Ethereum is the second most famous name in the virtual currency market. It somewhat similar to the concept of bitcoins however it possesses some additional attributes. It is purely a block chain based platform. What makes it special is the Ethereum Virtual Machine. The blockcain in ethereum is used not to store the data of the transaction but to make sure smooth run of a decentralized application. 2. Ripple – Ripple is more in the nature of a payment protocol created and developed by a company named Ripple, which is based on the concept of Real time Gross Settlement. It was initially released in the year 2012. 3. NEM – Similar to bitcoin, NEM is also a peer-to-peer blockchain platform launched in the year 2015. It uses the unique Proof-of-Importance algorithm , a way to validate transactions and achieve the distributed concensus. 4. Litecoin – Initially introduced in the year 2011, litecoin is mostly identical to bitcoin. What makes it stand out is the use of Segregated Witness and the Lightning Network. Some other cryptocurrencies are bbqcoins and dogecoins which have not gained much significance due to their technical shortcomings and inability to stand out.

In 2009, a white paper was published online under the name Satoshi Nakamoto (probably a pseudonym), proposing a new solution for something that some 3|Page

Internet enthusiasts had been looking forward to since the beginning of the Internet: A form of digital cash that functions based on principles dear to libertarian strands of the Internet community – non-state administered, decentralized (“peer to peer”) and open source based. In this strand of thought, cryptography and anonymous transaction systems are seen as important instruments to defend privacy and freedom in the digital age. With trust in the monetary and financial system shattered by the crisis, Nakamoto’s proposal was taken up in 2009 and implemented by a significant number of supporters. History of cryptocurrency

In 1998, Wei Dai published a description of "b-money", an anonymous, distributed electronic cash system.10 Shortly thereafter, Nick Szabo created "bit gold".11 Like bitcoin and other cryptocurrencies that would follow it, Bit Gold was an electronic currency system which required users to complete a proof of work function with solutions being cryptographically put together and published. A currency system based on a reusable proof of work was later created by Hal Finney who followed the work of Dai and Szabo. The first decentralized cryptocurrency, bitcoin, was created in 2009 by pseudonymous developer Satoshi Nakamoto. It used SHA-256, a cryptographic hash function, as its proof-of-work scheme.12 In April 2011, Namecoin was created as an attempt at forming a decentralized Domain Name Servers (DNS), which would make internet censorship very difficult. Soon after, in October 2011, Litecoin was released. It was the first successful cryptocurrency to use script as its hash function instead of SHA-256. Another notable cryptocurrency, Peercoin was the first to use a proof-ofwork/proof-of-stake hybrid.13 IOTA (Distributed Ledger Technology) was the first cryptocurrency not based on a blockchain, and instead uses the Tangle.14 Many other cryptocurrencies have been created though few have been successful, as they have brought little in the way of technical 4|Page

innovation.15 On 6 August 2014, the UK announced its Treasury had been commissioned to do a study of cryptocurrencies, and what role, if any, they can play in the UK economy. The study was also to report on whether regulation should be considered

The evolution of cryptocurrency memes, and bitcoin

1. street art 17 Block Bills Matthias Dorfelt created a type of physical bitcoin that looks similar to the fiat money. He used the hashes for 64 random blocks and turns them into an eccentric design that was created by his own software. He further created his own symbols for the hexadecimal numbers that he used along the bottom of every bill. Dorfelt acknowledged the work of Satoshi where he created the bill with codes except the signature of the name of “Satoshi” on the bill where he used the number of transfers stored in each block to tell the worth of each bill. 2. Art for Crypto Vesa Kivinen, the founder of Artevo Contemporary started a new cryptocurrency infused platform called ArtForCrypto.com. His work used various mediums such as digital photography mixed with oil and canvas paintings. The paintings consisted of visual depictions of the bull and bear, Satoshi Nakamoto, and one called the split among many others. 3. Phweep Phweep It is a crypto-artist and very good in pixel blending as he is known for manipulating movie covers, logos, and other images from pop-culture with 5|Page

bitcoin-related imagery. After joining bitcoin in 2012, he decided to focus on bitcoin satire in 2014 as he wanted to contribute to the crypto-ecosystem, although he had coding limitations

4 . Crypto graffi As an early bitcoin adopter, Cryptograffi was the first artist to utilize a publicfacing cryptocurrency wallet to receive donations for street art. His work has been seen all over the crypto-circuit, shared by luminaries, and featured in online publications.

TYPES OF CRYPTOCURRENCY 1) Litecoin (LTC) Litecoin, launched in the year 2011, was among the initial cryptocurrencies following bitcoin and was often referred to as ‘silver to Bitcoin’s gold.’ It was created by Charlie Lee, a MIT graduate and former Google engineer. Litecoin is based on an open source global payment network that is not controlled by any central authority and uses "scrypt" as a proof of work, which can be decoded with the help of CPUs of consumer grade. Although Litecoin is like Bitcoin in many ways, it has a faster block generation rate and hence offers a faster transaction confirmation. Other than developers, there are a growing number of merchants who accept Litecoin.

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2) Ethereum (ETH) Launched in 2015, Ethereum is a decentralized software platform that enables Smart Contracts and Distributed Applications (ĐApps) to be built and run without any downtime, fraud, control or interference from a third party. During 2014, Ethereum had launched a pre-sale for ether which had received an overwhelming response. The applications on Ethereum are run on its platformspecific cryptographic token, ether. Ether is like a vehicle for moving around on the Ethereum platform, and is sought by mostly developers looking to develop and run applications inside Ethereum. According to Ethereum, it can be used to “codify, decentralize, secure and trade just about anything.” Following the attack on the DAO in 2016, Ethereum was split into Ethereum (ETH) and Ethereum Classic (ETC). Ethereum (ETH) has a market capitalization of $41.4 billion, second after Bitcoin among all cryptocurrencies. (Related reading: The First-Ever Ethereum IRA is a Game-Changer) 3) Zcash (ZEC) Zcash, a decentralized and open-source cryptocurrency launched in the latter part of 2016, looks promising. “If Bitcoin is like http for money, Zcash is https," is how Zcash defines itself. Zcash offers privacy and selective transparency of transactions. Thus, like https, Zcash claims to provide extra security or privacy where all transactions are recorded and published on a blockchain, but details such as the sender, recipient, and amount remain private. Zcash offers its users the choice of ‘shielded’ transactions, which allow for content to be encrypted using advanced cryptographic technique or zero-knowledge proof construction called a zk-SNARK developed by its team. (Related reading, see: What Is Zcash?)

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4) Dash Dash (originally known as Darkcoin) is a more secretive version of Bitcoin. Dash offers more anonymity as it works on a decentralized mastercode network that makes transactions almost untraceably. Launched in January 2014, Dash experienced an increasing fan following in a short span of time. This cryptocurrency was created and developed by Evan Duffield and can be mined using a CPU or GPU. In March 2015, ‘Darkcoin’ was rebranded to Dash, which stands for Digital Cash and operates under the ticker – DASH. The rebranding didn't change any of its technological features such as Darksend, InstantX. (Related reading, see: Top Alternative Investments for Retirement) 5) Ripple (XRP) Ripple is a real-time global settlement network that offers instant, certain and low-cost international payments. Ripple “enables banks to settle cross-border payments in real time, with end-to-end transparency, and at lower costs.” Released in 2012, Ripple currency has a market capitalization of $1.26 billion. Ripple’s consensus ledger -- its method of conformation -- doesn’t need 8mining, a feature that deviates from bitcoin and altcoins. Since Ripple’s structure doesn't require mining, it reduces the usage of computing power, and minimizes network latency. Ripple believes that ‘distributing value is a powerful way to incentivize certain behaviors’ and thus currently plans to distribute XRP primarily “through business development deals, incentives to liquidity providers who offer tighter spreads for payments, and selling XRP to institutional buyers interested in investing in XRP.” 6 Monero (XMR) Monero is a secure, private and untraceable currency. This open source cryptocurrency was launched in April 2014 and soon spiked great interest 8|Page

among the cryptography community and enthusiasts. The development of this cryptocurrency is completely donation-based and community-driven. Monero has been launched with a strong focus on decentralization and scalability, and enables complete privacy by using a special technique called ‘ring signatures.’ With this technique, there appears a group of cryptographic signatures including at least one real participant – but since they all appear valid, the real one cannot be isolated.

IMPORTANCE OF CRYPTO CURRENCY 1. Cryptocurrency is one of the safest and trusted kinds of digital currency that people prefer nowadays. In a world where there is an abundance of conmen and looters, we all need to trade in the safest possible ways. Cryptocurrencies give us that assurance which makes them an important source of investment right now and in the future as well. 2. Another reason why cryptocurrencies have become extremely in demand is because of their policies. You don’t really need to deal with a third party when it comes to cryptocurrency. This gives people a reassurance and a feeling of safety. The fact that cryptocurrencies are digital currencies alleviates the need for a third party. You can transact no matter where you are situated at. 3. Cryptocurrency is a low-cost means of transaction. You don’t need to shell out money in order to exchange digital currencies. All you need in order to be able to transact is your cell phone and a basic knowledge of cryptocurrencies. 4. Most of the digital currencies have to pay for transactions. In the case of cryptocurrencies, you don’t really need to pay for the transactions. The reason is that the people who mine the cryptocurrencies; called as miners get their compensation from the network itself. 5. You can store your cryptocurrencies in a safe wallet. Cryptocurrencies give you the option of storing your money in two kinds of wallets which can easily be transferred to your account. And the wallets don’t have any charges in order to be able to store your digital currencies.

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6. For most people, privacy is the top-most priority. When dealing in cryptocurrencies, you can expect your transactions to be highly confidential. You can carry out your transactions and be anonymous. 7. The amount of money that you want to invest is totally up to Cryptocurrencies give you the liberty of buying them in fractions as well. If you feel like one bitcoin is too much, you can split it and buy half or one-third of it. This reduces the cost for you and does not require you to spend out of bounds. Using a crypto converter, you can find out the price of any cryptocurrency in your country’s currency and invest accordingly. 8. Since the senders and recipients of cryptocurrencies don’t directly transfer any money to the credit cards, you don’t have to share your credentials with anyone. This helps you in avoiding identity theft. You decide what information you want to share with the merchant if anything at all makes you doubtful. 9. You get complete autonomy that you look for. When it comes to cryptocurrencies, there is no third party involved to demand for any fee or money. You are the only person who is managing your account.

STATEMENTS OF PROBLEMS

Crypto currency is a relatively new concept. There are various terms, usage in it and there is various crypto currency the various that question that are challenge in this research I.e. . The gender wise familiarity of crypto currency. . Age wise familiarity of crypto currency. . The most preferred mode of storing crypto currency. . Exchange are most preferred to buy and trade crypto currency. . The most important advantages, disadvantages, factors regarding crypto currency.

FUTURE OF CRYPTO CURRENCY

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1. Reduced Remittance

Many governments around the world are implementing isolationist policies which restrict remittances made from other countries or vice versa either by making the charges too high or by writing new regulations. This fear of not being able to send money to family members and others is driving more people towards digital Cryptocurrency, chief amongst them being Bitcoin. 2. Control Over Capital

Many sovereign currencies and their usage outside of their home country are being regulated and restricted to an extent, thereby driving the demand for Bitcoin. For example, the Chinese government recently made it tougher for people as well as businesses to spend the nation's currency overseas, thereby trapping liquidity. As a result, options such as Bitcoin have gained immense popularity in China. 3. Better Acceptance

Today, more consumers are using Bitcoins than ever before, and that is because more legitimate businesses and companies have started accepting them as a form of payment. Today, online shoppers and investors are using bitcoins regularly, and 2016 saw 1.1 million bitcoin wallets being added and used. 4. Corruption Crackdown

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Although unfortunate, digital Cryptocurrency such as Bitcoin are now also seeing more usage because of the crackdown on corruption in many countries. Both India and Venezuela banned their highest denomination and still-circulating bank notes in order to make it tougher to pay bribes and make accumulated black money useless. But that also boosted the demand for Bitcoins in such countries, enabling them to send and receive cash without having to answer to the authorities. The Real-world Impact of Crypto Money While Cryptocurrency and its usage is at an all-time high, so are the misconceptions about it. Most people still seem to ask - Why use Bitcoin? Since such currencies use different algorithms and are traded in unconventional ways, it is important to lookout for some important characteristics before investing in Bitcoin or others of its ilk. This includes • Daily Trading Volume and Overall Market Capitalization Market capitalization of a cryptocurrency is the total worth of all its forms which are currently in circulation. New forms of Cryptocurrency might not be widely available, and therefore might not have high market capitalization. Similar to this is the daily trading volume, and a cryptocurrency which has higher trading volume than the others is considered more successful. • Verification Channels Each cryptocurrency has its own verification method. One of the most common methods for verification is called "Proof of Work". Herein, to verify a transaction, a computer has to spend time and computing power to solve difficult mathematical problems. On the other hand, "Proof of Stake" method allows users with the largest share of the cryptocurrency to verify the transactions, which requires far less computing power. • Acceptance of Cryptocurrency Unless a cryptocurrency is not accepted by major retailers or other businesses that you deal with, it doesn't stand much use. That is why Bitcoin still remains the most popular form of digital currency, since its reach is widespread and is accepted by many businesses and retailers alike.

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Challenges Ahead for Bitcoin While Bitcoin's astronomical growth cannot be understated, Cryptocurrency in general have several challenges to meet before finding universal acceptance. These challenges include – •

Safety and Reliability

Purely based on its digital form, Bitcoin and other types of Cryptocurrencies are nowadays the favorite mode of payment for both hackers and criminals because of the air of anonymity it lends. This instantly makes the general populace weary of using it. In 2014, Mt. Gox, the largest Bitcoin exchange was hacked and robbed of almost $69 million, thereby bankrupting the whole exchange. While the people who lost money have now been paid back, it still leaves a lot of people wary of the same thing happening again. •

The Debate on Bitcoin Scalability

The cryptocurrency community is up in arms over how the blockchain will be upgraded for future users. As the time and fees required for verifying a transaction climbs to record highs, more businesses are having a tough time accepting Bitcoins for payment. In early 2017, more than 50 companies came together to speed up transactions, but till now the results have not yet been felt. As a result, more users might start using normal modes of currency to overcome such blockchain hassles. •

The Rise of the Rivals

Today, Bitcoin is not the only game in town, and while its value has increased by almost 100% since the beginning of 2016, its share of the digital currency pile is rapidly reducing owing to almost 700 different competitors. Its market share has reduced to 50% from 85% a year before, a sign of the times to come.

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Unrecognized by Governments

Most of the general populace doesn't understand Bitcoins, and nor does most of the world's governments. The cost of gaining a license to set up cryptocurrency companies is sky-high, and there are no regulations in sight which might make it easier for people looking to invest into them. The U.S. Securities and Exchange Commission recently rejected a proposal by Bitcoin to run a publicly traded fund based on the digital currency, which in turn led to a big plummet in Bitcoin's

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CHAPTER – 2 RESEARCH METHODOLOGY

MEANING OF RESEARCH METHODOLOGY A research methodology introduces the general plan of how the researchers will go about doing research survey procedure. This study uses exploratory study and survey method the use of multiple methods allowed the research to gather different kinds of data, which provides different viewpoints to address different research objectives. OBJECTIVE OF THE STUDY To study the concept of cryptocurrency, also understanding the bitcoins and its scope To study the legalization of bitcoins in India, its comparison with other cryptocurrencies and the government’s stand towards it To study the future of cryptocurrency in India, and the views of experts for investing in the same To analyze the investor’s perceptions towards risk and return while investing in crypto currency. To study the environmental framework of investment in stock market created for retail individual investor.

Statement of problem The Statement of the problem under study is to analyze the investment pattern of investors and the availability of option for stock market or equity based investment on crypto currency.

SOURCE OF DATA The Primary Data respondent chosen for collecting the data is Retail Individual Investor. Source of Data In this research work, the primary and secondary, both types of data are used. To study the behavioural aspects of individual investors, the primary data is collected through closed ended structured questionnaire formed online. Data Analysis Tools and Techniques The data (responses) collected through the descriptive study is quantified, arranged & tabulated in SPSS 17.0 for statistical analysis. The structured questionnaire is used to collect the responses. The questionnaire frames the questions on 2 point Likert scale and tries to draw the exact responses that can foster the analysis work. Research Design Type of Research The Descriptive research method is used to study the behaviour of individuals which is thought one of the best techniques for this type of research. Descriptive researches are those which are concerned with describing the characteristics of a particular individual or a group of individuals. Stratified Random Sampling: In this Sampling, each and every element has an equal chance to be selected. This sampling is generally used with surveys and generalizations about the population are obtained from the sample. For this research study, the stratified random sampling is found best and thus selected for taking the sample and collecting the data. Sampling Design: Sampling techniques are the methods that are used to select a sample from the population by reducing it to more manageable size (Saunders, Lewis & Thornhill, 2007). According to Dillman, “These sampling techniques are used when the inferences are made about the target population.

Respondent Age Group According to stratified sampling, the respondent selected for taking the responses are between the age group of 21 to 65. Respondent Sample Size The sample size of 300 respondents was selected. Research Iinstruments I have collected the data through QUESTIONNAIRE by personal meeting and table–calling with people.

Limitations of the study • The responses given by respondents may not be true • Area of study is limited • Time of study is also limited

Literature review 1. Sindri Leó Árnason(2015) This is a bachelor’s of science essay that counts for 6 ECT credits in the School of Social Sciences, Faculty of Business Administration, at the University of Iceland. I chose this topic because I had become interested in Bitcoin and cryptocurrencies in 20132014 when their media coverage boomed. I had already done some research on this topic beforehand and as I am studying finance at the University of Iceland I wanted to research what Bitcoin’s future impact on the business world could possibly be. I would like to thank Guðrún Johnsen who is a lecturer at the School of Social Sciences, who helped guide me through writing this essay and my father, Árni Leósson, who helped read over my essay, fixing spelling and grammar mistakes as well as helping me develop essential arguments. 2. Steven Gold Feder (2016) The path to Bitcoin is littered with the corpses of failed attempts. I’ve compiled a list of about a hundred cryptographic payment systems, both e-cash and credit card based technologies, that are notable in some way. Some are academic proposals 17 | P a g e

that have been well cited while others are actual systems that were deployed and tested. Of all the names on this list, there’s probably only one that you recognize — PayPal. And PayPal survived only because it quickly pivoted away from its original idea of cryptographic payments on hand-held devices! There’s a lot to learn from this history. Where do the ideas in Bitcoin come from? Why do some technologies survive while many others die? What does it take for complex technical innovations to be successfully commercialized? If nothing else, this story will give you an appreciation of how remarkable it is that we finally have a real, working payment mechanism that’s native to the Internet. 3. Jonathan Chiu(2017) A general equilibrium monetary model is developed to study the optimal design of a cryptocurrency system based on a blockchain. The model is then calibrated to Bitcoin transaction data to perform a quantitative assessment of the scheme. We formalize the critical elements of a cryptocurrency: the blockchain to keep a history of transactions, the distributed updating of information and consensus through competition for such updating. We show that, unlike cash, a cryptocurrency system does not support an immediate, final settlement. In addition, the current Bitcoin scheme generates a welfare loss of 1.4% of consumption. Such loss can be lowered substantially to 0.08% by adopting the optimal policy which reduces mining and relies on money growth rather than transaction fees to finance mining rewards. The efficiency can potentially be improved further by adopting an alternative consensus protocols such as the proof-of-stake. A key economic feature of a cryptocurrency system is that mining is a public good, while double spending to defraud the cryptocurrency depends on individual incentives to reverse a particular transaction. As a result, a cryptocurrency works

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best when the volume of transactions is large relative to the individual transaction size. 4.Nicola Dimitri (2017) Since its 2008 appearance as a cornerstone of the cryptocurrency bitcoin, the blockchain technology gained widespread attention as a modality to securily validate and store information without a trusted third party. Indeed trust is replaced by cryptographic security, epitomised by hash functions, a unique fingerprint of any information file. The paper is a quick overview of the main concepts and applications of the blockchain, taken from an economic perspective. 5.Pasquale Giungato( 2017) Bitcoin is a digital currency based on a peerto-peer payment system managed by an open source software and characterized by lower transaction costs, greater security and scalability than fiat money and no need of a central bank. Despite criticisms about illegal uses and social consequences, it is attracting the interest of the scientific community. The purpose of this work is to define and evaluate the current trends of the literature concerned with the sustainability of bitcoin, considering the environmental impacts, social issues and economic aspects. From the analysis it emerges that the transition of the whole monetary system in the new cryptocurrency will result in an unacceptable amount of energy consumed to mine new bitcoins and to maintain the entire virtual monetary system, and probably bitcoin will remain a niche currency. Blockchain, which is the base for a distributed and democraticallysustained public ledger of the transactions, could foster new and challenging opportunities. Sharing the framework of medical data, energy generation and distribution in micro-grids at the citizen level, block-stack and new state-driven cryptocurrencies, may benefit from the wide spread of blockchain-based transactions. Under the 19 | P a g e

perspective of its being a driver of social change, bitcoins and related blockchain technologies may overcome the issues highlighted by numerous detractors. 6.Satoshi Nakamoto( 2017) A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution. Digital signatures provide part of the solution, but the main benefits are lost if a trusted third party is still required to prevent double-spending. We propose a solution to the doublespending problem using a peer-to-peer network. The network timestamps transactions by hashing them into an ongoing chain of hash-based proof-of-work, forming a record that cannot be changed without redoing the proof-of-work. The longest chain not only serves as proof of the sequence of events witnessed, but proof that it came from the largest pool of CPU power. As long as a majority of CPU power is controlled by nodes that are not cooperating to attack the network, they'll generate the longest chain and outpace attackers. The network itself requires minimal structure. Messages are broadcast on a best effort basis, and nodes can leave and rejoin the network at will, accepting the longest proof-of-work chain as proof of what happened while they were gone. 7. Kiran Ganesh(2017) Cryptocurrencies have soared in popularity since 2008, with more than 1,000 in existence today and an aggregate value greater than the market capitalization of IBM. But we are highly doubtful whether they will ever become mainstream currencies. The need for companies and individuals to pay tax receipts in government-issued currency, and the potentially unlimited crypto-money supply, pose significant barriers to widespread adoption. We think the sharp rise in cryptocurrency valuations in recent months is a speculative bubble. • But while we are doubtful cryptocurrencies will ever become a mainstream 20 | P a g e

means of exchange, the underlying technology, blockchain, is likely to have a significant impact in industries ranging from finance to manufacturing, healthcare, and utilities. We estimate that blockchain could add as much as USD 300-400bn of annual economic value globally by 2027. • Investing in the blockchain wave is akin to investing in the internet in the mid-nineties. Blockchain could lead to significant disruptive technologies in the coming decade. But for the time being, technological shortcomings still need to be resolved, it remains unclear which specific applications will prove most useful/profitable, and actual revenue and profitability associated with the industry is currently limited. Despite these challenges, investors seeking long-term opportunities from blockchain technology can start to position in two broad groups: technology enablers – in software, semiconductors, and platforms; and early & successful adopters – in finance, manufacturing, healthcare, utilities, and the sharing economy.

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CHAPTER 3 SWOT ANALYSIS

SWOT Analysis

When we use SWOT analysis, Its often for strategic planning. It prepares for decisions and gives an overall look at the strengths, weaknesses, opportunities, and threats of business. But SWOT analysis can also be used to increase and build upon customer satisfaction. To give a well-rounded overview of how to use SWOT analysis for a boost in customer satisfaction, we’ll start with the Strengths and Weaknesses first.

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SWOT analysis, for any who may be unfamiliar, is a planning method typically used in business strategy to identify the Strengths, Weaknesses, Opportunities and Threats that may face a business or project. A number of us have likely had the opportunity to either observe or participate in this exercise for the broader business in which we work. A quick overview of the core concepts:

Strengths and weaknesses Strengths and weaknesses internal to the organization. Strengths represent positive attributes or characteristics, factors that provide an advantage. Weaknesses are attributes or characteristics that place the business at a disadvantage relative to others.

Opportunities and threats Opportunities and threats are external to the organization. Opportunities represent external trends and chances to improve performance - something happening in the outside environment that presents positive potential. Threats are elements or trends in the outside environment that could cause trouble for the business, place it at risk.

Strengths •

Operational Efficiency

• Facilitates easier sharing of information about certain products or trades. No more documents that have to passed along. We can now register everything on the blockchain. •

Secure encryption and tamper-proof data storage

•

Eliminates central authority who has full access to the data.

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Weaknesses •

Business rules change frequently, blockchain doesn’t.

• Blockchain is mostly not modular. An old encryption module cannot easily be replaced. • What if business rules change and we want to export data to a new blockchain with the correct data models? A blockchain doesn’t provide an immediate out-of-the-box exit strategy. • Potentially in conflict with existing approaches to regulatory compliance, for example GDPR regulations. • Concept isn’t easy to grasp for a newcomer. We need good education to make mass adoption possible.

Opportunities •

Provides a platform for Big Data and analytic research.

• Gives back control to the user e.g. instead of Google and Facebook using your data, you can control who gets access to your data. All these permissions will be stored on the blockchain. • The world is becoming more digital, so more people will accept the concept of blockchain in their daily lives. Threats • Scalability issues: too many transactions (overload), although several solutions are present. •

Unwanted centralization: mining pools and large mining farms

•

Quantum computers (in the future) who have the ability to decrypt data.

•

Hype and fast changing environment

•

There is always the possibility of mining attacks, and hacks.

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CHAPTER – 4 OUTCOME OF THE STUDY Cryptocurrency facts takes a simplified look at digital currencies like Bitcoin to help explain what cryptocurrency is, how it works, and its implications. Cryptocurrency is a digital currency that uses encryption (cryptography) to generate money and to verify transactions. Transactions are added to a public ledger – also called a Transaction Block Chain – and new coins are created through a process known as mining.

➢ From the survey we comes to know that 85% of the citizen of India do not supports cryptocurrency and 15% of citizen of India support cryptocurrency. ➢ From the survey we comes to know that, 73% people increase their interest in using cryptocurrency and 27% people decrease their interest in using cryptocurrency.

➢ From the survey, we comes to know that main reason behind that the government is not supporting the cryptocurrency,70% of the people thought it is untrackable,20% of the people thought that it reduces the power of ministry of finance & 10% of people thought that it increases the illegal activities.

➢ From the survey, we comes to know that 20% of the people thought that govt approach is positive towards cryptocurrency& 80% of the people thought that govt approach is negative towards cryptocurrency

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➢ From the survey, we comes to know that 50% people interest has been increased in using cryptocurrency by considering the less fees to operate & 50% people interest has been decreased in using cryptocurrency by considering the less fees to operate.

➢ From the study we comes to know that,45 % people thought that their interest is increasing in using cryptocurrency & 55% people thought that their interest is decreased in using cryptocurrency. ➢ From the survey, we comes to know that 35% people thought that cryptocurrency diminish the value that you perceive about the currency & 65% people thought that cryptocurrency not diminish the value that you perceive about the currency.

➢ From the study we comes to know that,30% people is interested in using cryptocurrency & 70% people is not interested in using cryptocurrency. ➢ From the study, we comes to know that 60% People has invested in cryptocurrency and 40% People has not invested in cryptocurrency.

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CHAPTER 5 LEARNING, EXPERIENCE, and CONCLUSION LEARNING EXPERIENCE This project gave me great opportunity to learn about the all aspects of the CRYPTO CURRENCY And helped me to know about current situation of the CURRENCY The learning experience gained by me during the in plant training was very much practical oriented. Mostly all the concepts which I studied in the class, are applicable practically I gained many new management skills and also got a chance to learn new things on my own experience. The overall study of the organization

1. Improve skills One of the most important things you can gain from internship is new knowledge and network and it helps to improve many new skills and knowledge 2. Professional communications

It is the best way to learn how to navigate the working world through real-life hands on experience one of the most valuable skill you will gain from an internship is the ability to speak with people in a professionals

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3. Making connections The people who will be reference in the future it will setup many new connections and build the strong relationship

4. Independence Internship will teach you to make your own decision and do things on your own being able to work independently with little guidence is very important in the working world

I came to know what exactly needs wheather quality of work or quality of work to be done or both. And also some extent I could understand the CURRENCY work culture. Uniformity which is a essential element that management should maintain it will also create an impression on the minds of another about their taste, preference, values .I had a great time working on the project, as it given insights into the working environment of an organization. The environment is good. I have learn lot of thing there. This project gave me a great learning experience and at the same time it gave me enough scope to implement my educational ability. The information advice presented in this project is based on secondary information.

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CONCLUSION The cryptocurrency market, which trades various digital-based coins, can look exciting, scary, and mysterious all at once to the casual observer. Its pioneer, Bitcoin, dramatically surged in value and steeply dropped (before picking back up) in recent months. ICOs (initial coin offerings for new cryptocurrencies), meanwhile, are emerging at a head-spinning rate. While some financial advisers remain skeptical, it’s hard to ignore the massive amount of money invested in the field. We talked to two leading futurists, who study and predict technology trends, about where they see cryptocurrency headed—and why you should pay attention. The problem that we can foresee is the pace of change in regulations; change in regulation usually takes a route of develop, propose and adopt which generally takes a period. Regulations or regulatory changes typically evolve at a pace than innovation thereby killing it by declaring it illegitimate. Also as its not been governed by a central authority Bitcoin tends to fluctuate widely and to be used globally its volatility needs to settle down.

BIBILIOGRAPHY

http://www.iamwire.com/2017/12/the-future-of-cryptocurrencies-in-india/169365 https://www.compareremit.com/money-transfer-guide/the-future-ofcryptocurrencies-in-india/ http://www.iosrjournals.org/iosr-jbm/papers/Conf.17037-2017/Volume7/2.%2005-09.pdf https://www.economist.com/sites/default/files/the_future_of_cryptocurrency.pdf https://timesofindia.indiatimes.com/world/bitcoin-and-other-cryptocurrencies-acomparison/articleshow/62248502.cms Basel Committee Report on Banking Supervision. (1998). Risk Management for Banking and Electronic Money Activities. Bank for International Settlement. Available at: www.bis.org/publ/bcbs98.pdf Arora, P., Kumar, D., and Kansal, M. (2007): “Role of Information Technology in Banking Sector”, in Uppal, R.K and Jatana, R. (eds.) E-Banking in India: Challenges and Opportunities

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