Responsiveness of Digital Currency Among the Public
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ABS International Journal of Management Sakshi Motwani RESPONSIVENESS OF DIGITAL CURRENCY AMONG Assistant Professor, Arihant College THE PUBLIC Sonali Jain Assistant Professor, Arihant College Abstract In this modern and global world where technology is the essential part of our everyday lives currency is not the exception of it. Digital Technologies spurs rapid economic growth with citizen empowerment across the globe. These technologies are being increasingly used day by day from retail stores to government offices. In this digitalized world where everything available on a click people also want to maintain their wallet in the digital form. So the Virtual currency is a kind of digital currency which is activated by the development of technology and the use of the internet. Virtual currency is a type of unregulated, digital or crypto currency, which is issued and controlled by private developers. Such type of currency has a specific market and used by a precise virtual community. The transaction process of virtual currencies is complex and not easy to understand without a sound technical knowledge. In this paper authors are trying to analyze the awareness of digital currency among public and risk associated with it. Keywords: Virtual currency, Medium of exchange, Awareness Introduction Digital currency or electronic currency is Chinese Yuan currency due to speculation Currency portrays the richness of the country available only in digital form, not in physical (Asia Times, 2006). At present interest in in terms of culture as well as wealth of nation. form such as banknotes and coins. Digital crypto currencies has prompted renewed Ancient Indians were the earliest issuers of currency is a money balance recorded interest in digital currencies, with bit coin, coins in the world, along with the Chinese electronically on a stored-value card or other introduced in 2008, becoming the most and Lydians (from the Middle East). The first device. These currencies reveal properties widely used and accepted digital currency. Indian coins – punch marked coins called similar to physical currencies, but permits Puranas, Karshapanas or Pana – were minted instant transactions and borderless transfer- Digital currencies are a 21st-century creation in the 6th century BC by the Mahajanapadas of-ownership like virtual currencies or - a mixture of digital assets, huge amounts of (republic kingdoms) of ancient India (Pal, digital base money. These currencies may be computing power and a network of servers 2016). The journey of currency is very long- used to buy physical goods and services like on which to store shared data. These are standing in India and passed through different traditional coinage system, but may also be web-based, peer-to-peer payment systems phases of life cycle. In the ancient time the restricted to certain communities. that depend on cryptography. main function of the currency is the medium of exchange. But at present time it is not David Chaum introduced the idea of Cryptography is a technique which is used for only the medium of exchange but performs digital cash first in 1983. Origins of digital payment and transaction of it. It is a kind of other functions also i.e., unit of account (also currencies date back to the 1990s Dot-com E-code technique, which changes messages called a measure of value) a store of value bubble. One of the first was E-gold, founded or information in e-code version. This type along with medium of Exchange (Mankiw, in 1996 and backed by gold. Another known of currency is as “a digital unit of exchange 2009 & Krugman, 1984). digital currency service was Liberty Reserve, that is not supported by a government-issued founded in 2006; it let users convert dollars legal tender” (GAO Report, 2012). The most Nowadays currency is the essential part or euros to Liberty Reserve Dollars or Euros, well-known, and successful, example of of any kind of operation which makes the and exchange them freely with one another crypto currency is the Bitcoin, introduced in transactions convenient to the people. In at a 1% fee (Cloherty Jack, 2013). Q coins or 2008 (Nakamoto, 2008).Virtual currencies today’s virtual world where everything is QQ coins were used as a type of commodity- are digital representations of value, issued digitalized our currency is also change in the based digital currency on Tencent emerged by private developers and denominated digital mode. in early 2005. It was so effective in China in their own unit of account. It can be that it have had a destabilizing effect on the obtained, stored, accessed, and transacted 61 ABS International Journal of Management electronically, and can be used for a variety Bitcoin attracted a substantial number of Graph 1: Awareness about the Real and of purposes, as long as the transacting parties users. Barber (2012) identify several issues Virtual Currency agree to use them. and attacks of Bitcoin, and propose suitable techniques to address them. Virtual currency Potential users of virtual currencies may be schemes differ from electronic money attracted by its low transaction costs, its peer- schemes in so far as the currency being used to-peer, global and government-free design as the unit of account has no physical counter and the possibility to purchase special goods part with legal tender status (European (e.g. illegal drugs). However, potential users Central Bank, 2012). A significant part of may be “distracted” if the acceptability and the criticism of Bitcoinis it does not seem the confidence in the system are low or if the to follow the regression theorem. Mises put price of the virtual currency is too volatile. forth to explain the emergence of money. An Source: Computed by uthor itself If it happens then it does not enhance attempt will be made to reform the regression confidence and acceptability but will attract (Ólafsson, 2014). If we compare the different functions of both speculators, money laundering which further the currencies the results of the study shows increases price volatility (Baur & Lee, 2016). Objective that like community is less aware about The aim of the paper is to analyze the the transaction process of virtual currency; There are 1324 crypto-currencies are awareness of virtual currency among public. similarly they also have less knowledge available over the internet. By market It is an effort to find out that whether the about the various function of it. The graph capitalization, Bitcoin is currently, the largest people are acknowledged about the jargons shows the result below. blockchain network, followed by Ethereum, and the process of virtual currency or not. Bit coin, Cash, Ripple and Litecoin. The finding can be useful for economist, Graph 2: Difference between the functions Some other types of crypto-currencies are policy makers and investors. of Real and Virtual Currency Swiftcoin, Peercoin, Grid coin, Omni, Black coin, Dash, Digitalnote, Titcoin, Z-cash, Research Methodology Lisk etc. (List of crypto-currencies, 2017). This paper is an attempt to explore the Though lots of virtual currencies are there research through questionnaire based on but people are aware about the name of just purposive convenient random sampling. 2 or 3 currency. The mode of survey is e-mail, telephonic discussions or personal face-to-face Review of Literature: meetings. The sample has been drawn The competition or co-existence of virtual through a detailed questionnaire that assesses currencies with fiat currencies is often the basic awareness of virtual currency. The deliberated with reference to Gresham’s law sample size is 100 and has been selected that envisages that bad money drives out good from the area of educationist. money. Awkwardly, Gresham’s law cannot be applied to virtual currencies in most cases Findings and Discussion as the price of virtual currencies is generally The data of research which is depicted by not fixed to existing fiat currencies (Baur & the graph below shows that populaces are Lee, 2016). Bitcoin has potential to replace well known about the connotation of Real traditional money. In order to do that, it must currency but not familiar with the Virtual first evolve into a more secure form of money. currency. People are unacquainted toward Liaising with other forms of online payment transaction process of virtual currency which and involving the government in insurance is reflected in the trust factor also. The data policies for protection against theft, are of this factor shows that majority of the suggested steps for Bitcoin to grow out of its population not showing the trust on virtual volatile stage (Singhal & Rafiuddin, 2014). currencies. Source: Computed by author itself 62 ABS International Journal of Management Risk associated with virtual currencies Bitcoin Network or other means of industry”, which itself is subject to In spite of the attractiveness and affirmative alteration, then a Blockchain may be a high degree of uncertainty. Digital price enactment, digital currency is not altered. While the Bitcoin Network currency software is still developing without risk. is decentralized, there is increasing for many incomplete features. New 1. For feiture or obliteration of the evidence of concentration by features and services are being private key: These types of currencies creating of “mining pools” and other developed to make this currency are kept in an electronic wallet and are techniques, which may increase the more secure and accessible. Lack of control only by the possessor of both risk that one or several actors could insurance & less secure quality make the public key and the private key control the Network or other similar it more insecure currency. relating to the E- wallet in which these Blockchain. 8. Promote to black market and money currencies are held, both of which are 4. Trading platforms and exchanges risks: laundering: Digital currencies cannot unique.