However, the first transaction with cryptocurrency occurred in 2009 using Bitcoin. After its discovery, Bitcoin prices stayed relatively low, with users unsure of its trajectory. In 2013 there was a sudden projection of its price from $1 per coin to around $1,250.00 per coin (Wang et al., 2022). This increase in the price of Bitcoin brought about attention to the crypto market, and many crypto coins started flooding the market with promises of different levels of usability. The most serious development of this market was witnessed at the beginning of the year 2020 with the outbreak of COVID-19. In addition, Decentralization in blockchain initiatives has enabled firms to resist censorship and fraud, enhance security and better privacy.
Cryptocurrency is a digital or virtual form of currency that uses cryptography for security.2. It operates independently of a central authority, such as a government or financial institution.3. The most well-known cryptocurrency is Bitcoin, created in 2009 by an unknown person or group of people using the pseudonym Satoshi Nakamoto.4. Cryptocurrencies are stored in digital wallets and transactions are recorded on a decentralized public ledger called a blockchain.5. The value of cryptocurrencies can be highly volatile, with prices fluctuating rapidly.6. Cryptocurrency transactions are typically irreversible, making them attractive for online purchases and international money transfers.7.
These digital currencies have gained popularity due to their decentralized nature, which means they are not controlled by any government or financial institution. In conclusion, the growth analysis of cryptocurrencies shows that the adoption process of cryptocurrency is high in the global world. Lack of enough knowledge and information is the major drawback to this market. However, with well-regulated policies, the crypto market can grow faster. Moreover, the cryptocurrency market analysis shows that not many people would invest in it due to its volatile nature. Many investors prefer to use bonds, shares, and stocks as they have stayed for a long and are trusted by huge organizations.
The fixed eventual supply ensures digital currencies relatively deflate over time. Under the premise of maturity of technology, disappointment and the desperate need for financial stability makes the innovation of digital currency almost inevitable. However, there is a lack of appropriate regulation and insufficient oversight. This causes the digital currency market chaos and has attracted the attention of governments. Since the discovery of cryptocurrency in 2009, the impact of these activities has been felt in all aspects of life. Socially, Cryptocurrencies have created a more affordable and reliable remittance payment method (Wilson, 2019).
According to various sources, funds from the Russian government were transferred through Crypto into the USA during this election period (Ajmi & Arfaoui, 2020). In Ukraine, research has it that 57 government officials have declared over 21,000 bitcoins. Different cryptographic strategies, like hash functions and zero-knowledge protocols, have enabled businesses to achieve Decentralization. For instance, using key rotations in everyday operations has reduced the likelihood of data compromise. The frequent rotation of master keys on the firm’s key stakeholders enables the development of secure information that safeguards the information (Das et al., 2022).
If it reaches a certain scale, the regulation and control of the central bank will be adversely influenced. The prerequisite for the central bank’s regulation is the monopoly currency issuance right and the lender of last resort. By putting in or recovering the base currency, it regulates the liquidity of the banking system, affects short-term interest rates, and thus affects economic behavior such as savings and investment.
