In recent years, cryptocurrency—particularly Bitcoin—has demonstrated its value, now boasting 14 million Bitcoins in circulation. Investors speculating on the future possibilities of this new technology have driven most of the current market capitalization. This is likely to remain the case until a certain price stability measure, and market acceptance are achieved. Apart from the declared price of the cryptocurrency, those invested in it appear to be relying on a perceived “inherent value” of cryptocurrency. This includes the technology and network itself, the integrity of the cryptographic code, and the decentralized network.
Blockchain public ledger technology (which underlies cryptocurrency) has the potential to disrupt a wide variety of transactions, in addition to the traditional payments system. These include stocks, bonds, and other financial assets for which records are stored digitally. There is currently a need for a trusted third party to verify the transaction.
