Cryptocurrency

A. Hook: The trading sector has encountered great revolution as new means of exchanges are discovered with the development of modern technology.

B. Introduce the specific topic

Before, the monetary currency was adopted barter trade was the main activity in which food was exchanged with other goods including animals and ornaments.

C. Thesis Statement— Cryptocurreny is a virtual currency traded over the internet and although it may lead to illegal activities and have other limitations, it provides a better way of saving and investing to traders this can replace the main currency.

II. Body I:

A. Cryptocurrency is created and managed by use of encrypted technology, which is also called cryptography and includes the Bitcoin, litecoin, Skycoin, and Ripple among others.

à Bitcoin is the major digital currency introduced in 2009 opening a platform for cryptocurrency trade to the world Idea

Idea 1: The value of the cryptocurrency is volatile unlike the fiat currency, which is mainly controlled and regulated by the government.

Idea 2: Investor must own personal computers and serve as ledger keepers as well as auditors for every transaction that occurs since every blockchain bears ledger file unique to the user.

 Idea 3: Transactions are done in a public ledger, which helps in reducing fraud and promoting the authenticity of the every exchange

First Body Argument Idea—OPPOSING VIEW

Cryptocurrecy is questionable due to its complex way of creation and other limitations that make it unpopular to a large population.

1. Supporting Idea 1: Cryptocurrencies may lead to illegal activities such as money laundering, drug peddling, weapon procurement, as well as funding of terrorism activities

2.   Supporting Idea 2: Emergency of many virtual currencies such as the Litecoin, Ripple, MintChip can make the field quite competitive

Summary: The currency may face many challenges in future if nations start regulating its use.

B. Cryptocurrency has several advantages over the traditional currencies and is likely to replace them in the future.

Supporting subtopic 1: The trade goes through cycles due to volatility of the currency since it is not regulated by authorities.

Supporting subtopic 2: The cryptocurrency also disrupts the banking system and offers an alternative way of saving and investing money with minimal charges.

Supporting subtopic 3: The cryptocurrencies are becoming popular especially the Bitcoin that reached a value of $10,000 on November 28 2017 according to Rafferty.

Summary: No currency conversions are required since the virtual currencies are peer to-peer and the coins are therefore frictionless allowing people to access their balances with only a password.

III. Conclusion

A. Cryptocurreny is a virtual currency traded over the internet and although it may lead to illegal activities and have other limitations, it provides a better way of saving and investing to traders this can replace the main currency.

B. Currently, virtual currencies have become common and more acceptable as a means of payment with assistance of the internet. The emergence of cryptocurrencies such as Bitcoins, Skycoins, and Likecoins among others leads to provision of an immediate and reliable means of exchange of goods and services via the internet.

C. Concluding thoughts

Despite the weakness of the virtual currency, the system has proven effective in ensuring legitimacy as well as tracking of transactions from sender to recipients, investors, with great benefits.

Works Cited

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Meiklejohn, S., Pomarole, M., Jordan, G., Levchenko, K., McCoy, D., Voelker, G. M., & Savage, S. (2013, October). A Fistful of Bitcoins: Characterizing Payments among Men with no Names. In Proceedings of the 2013 Conference on Internet Measurement Conference (pp. 127-140). ACM.

Michael, Bedford Taylor. ”The Evolution of Bitcoin Hardware” Computer, vol. 50, no. 9, Sep. 2017, p.58-66  

Narayanan, Arvind. Bitcoin and Cryptocurrency Technologies: A Comprehensive Introduction. Princeton University Press, 2016.

Nakamoto, S. (2008). Bitcoin: A Peer-to-peer Electronic Cash System. www.academia.edu/download/32413652/BitCoin_P2P_electronic_cash_system.pdf

Osborne, Charlie. What we can expect from Future Cryptocurrency Regulation Worldwide. 2018.  http://www.zdnet.com/article/the-state-of-cryptocurrency-regulation-worldwide-and-what-the-future-will-bring/

 Peck, Morgan E. Blockchains: How they Work and why they’ll Change the world. IEEE spectrum, vol. 54, no.10, Oct. 2017, p.26-35

Rafferty, John. ”Litigating Cryptocurrency: Is Bitcoin’s Future Doomed?” The Legal Intelligencer, 9 Jan. 2018. www.law.com/thelegalintelligencer/sites/thelegalintelligencer/2018/01/09/litigating-cryptocurrency-is-bitcoins-future-doomed/?slreturn.

Seetharaman, A., Saravanan, A.S., Patwa, N. and Mehta, J. ”Impact of Bitcoin as a World Currency”. Accounting and Finance Research, vol. 6, no. 2, 2017, p. 230. doi:10.5430/afr.v6n2p230.

Ziegeldorf, J. H., Grossmann, F., Henze, M., Inden, N., & Wehrle, K. (2015). Coinparty: Secure multi-party mixing of bitcoins. In Proceedings of the Fifth ACM Conference on Data and Application Security and Privacy (pp. 75-86). ACM.