3. Problem Statement
Legalization of digital currency;
We all know that digital currency is now a medium of exchange that is , encrypted, decentralized and digital.
There is no central authority to determine the value of digital currency.
Instead, the value of digital currency is determined by its customers over the Internet.
The government is failed to amuse the people.
4. Objectives
We’ll cover how can we adopt the digital currency in the legal way by using business analysis tools and techniques
which we had already cover in our course;
SWOT Analysis
PESTLE Analysis
Porter’s Five Forces Analysis
V-MOST
Business Canvas Model
Stakeholder Wheel
Ansoff Model
Six Sigma
5. Background
Digital currencies are currencies that are only accessible with computers or mobile phones because they only
exist in electronic form. Typical digital currencies do not require intermediaries and are often the cheapest
method for trading currencies.
So many people have same query in their mind after reading this how mining process occur?
Here is the answer;
We can say which option we are choosing proof of stake or proof of work in order to mine the native
currency of specific chain on which the person is miner in this way he/she can get their transaction done and
get the reward that reward will be in native currency.
8. Bitcoin strengths: cryptocurrency can’t be tracked or stolen.
Bitcoin weaknesses: crippling slow transactions and accessibility loss.
Bitcoin opportunities: Safety from compromising data breaches.
Bitcoin threats: The anonymity against governments and banks.
Bitcoin Strengths: Cryptocurrency can’t be tracked or stolen
Bitcoin uses blockchain (a peer-to-peer) network between the sender and the receiver. Only these two
parties are involved. It’s unlike any other method of transferring currency — which involves a third party,
like a bank. A middleman is prohibited from Bitcoin transactions.
Bitcoin Weaknesses: Crippling slow transactions and accessibility loss
Bitcoin transactions aren’t as fast as they were a few years ago. This is one of the downsides of Blockchain.
Basically, the blocks get bigger the more it’s in use. Making the whole process clunky and slow.
9. Bitcoin Opportunities: Safety from compromising data breaches
we’re moving away from physical money in favor of cashless currencies. In fact, big names like Amazon
are already accepting Bitcoin as payment for their goods. If companies the size of Amazon are recognizing
Bitcoins’ viability, it’s safe to assume others will follow.
The blockchain is a phenomenal technology with much promise. The blocks may be able to keep data like
criminal records, birth certificates, and public records private. It may pave the way for impenetrable
encryption. That’s something the masses are leaning towards for data protection.
Bitcoin Threats: The anonymity against governments and banks
Anonymity is a benefit. An opportunity. But it’s also a problem.
It’ll be a problem for the government or law enforcement, after all. If more criminals adopt Bitcoin into
their illegal purchases, law enforcement will face a challenge in finding and prosecuting these criminals.
And just because cryptocurrency appears infallible now, doesn’t mean it will in the future. As more
information about it surfaces, the holes will reveal themselves. People, such as criminals, will take
advantage of the issues ASAP.
12. In this section, the different elements that impact the growth and adoption of cryptocurrency industry using
PESTLE analysis.
Political: With large growth forecasted by analysts worldwide, the use of cryptocurrency is still new to the
market, it’s facing many challenges
Government Policy: Government support or opposition are extremely influential for the future of the
cryptocurrency industry, both in terms of regulation and for public sector adoption of blockchain
technology.
Political Stability: Regulators globally have raised the alarm over cryptocurrencies, saying they may aid
money laundering and terrorist financing, hurt consumers and undermine trust in the global financial
system.
Corruption: Use of cryptocurrencies lead to widespread government opposition and regulation. Less
chances of corruption due to the decentralization.
Tax Policy: Purpose of cryptocurrency as a decentralized mechanism, and regulations hinder investor profit
on tax collections
13. Trade: Recognizable assets such as stocks, commodity, or cryptocurrency are being affected by mainstream
global trade tussles.
Economy: Banks are significant institutions in financial and political framework of modern economies.
Economic Growth: It benefits through innovation, investment, jobs and taxes. Business benefits of adopting
crypto as a digital asset include access to new demographics and technological efficiencies.
Interest Rate: Higher interest rates may take the shine off some crypto investments, as they give savers the
opportunity to secure more attractive returns in a lower-risk way. However, the value of major digital
assets, such as bitcoin and ether, aren't just influenced by the cost of borrowing.
Unemployment Rate: An added advantage of cryptocurrency is that it's completely decentralized, which
means that for citizens living in countries with currency instability, cryptocurrency allows them to trade
freely across borders with citizens of more well-off countries, creating a level of economic equality.
14. Social: Cryptocurrencies seem to work out for those living in less developed world countries
Population and Growth Rate: Cryptocurrency seems to be driven into the mainstream as a currency and a
means of exchange by economies that are failing rather than thriving. Places lacking in financial
infrastructure or highly inflated currencies are more likely to identify Bitcoin as an alternative measure for
transaction. In the US and most developed countries, bitcoin is primarily a speculative investment.
Career: By adapting the newest technology we can flourish in our career as well. One of the most in-
demand careers in cryptocurrency is in data and software development. These jobs are in high demand and
offer a lucrative career path.
Cultural Barriers: The majority of the crypto community may not exactly mind the complexities of
entering in 42-character addresses or securing their private keys with all crypto prices. So, user's ability on
this matter may cause a barrier for crypto adoption. We people are not completely comfortable with the
digital currencies and still preferred the old transaction method.
15. Technology: Cryptocurrencies are built on a breakthrough technology called “Blockchain”.
Level of Innovation: The main innovation in cryptocurrencies is, that they are based on cryptographic proof
instead of trust, enabling two willing parties to transact directly and irreversibly with each other in a
decentralized manner without the need for a trusted third party to verify all transactions (Nakamoto 2008)
R&D Activity: The Blockchain technology is touted as having the capacity to be revolutionary in various
sectors such as finance, e-commerce, health, logistics, real estate, and jewelry industries, etc., even fighting
against corruptions. The transparency and security of data stored in a blockchain facilitate trust and
efficient.
Environment: Sustainable mining is another barrier on which many developers are still working on.
Environmental Policies: Proof of Stake could be a viable solution, but it is less safe and more prone to the
centralization that specific Proof of Work. Today, different countries like Canada and Australia allow for
crypto mining and using top crypto prices while using sustainable energy resources. We just need to
decrease the amount of computational power than blockchains that need to run.
16. Legal: Cryptocurrencies are built on a breakthrough technology called “Blockchain”.
All types of Law: The legality will be affected by the political disposition of the target country, as well as
the predominant economic theory that steers the countries markets. Most important is to settle the
jurisdiction of the classification of cryptocurrency
22. Vision
The Bitcoin vision is to create a new form of money outside the authority of any central issuer. The DeFi
vision inverts this, and takes the money creation part for granted. After all, you can spend a dollar on the
Ethereum network using a USD-backed stable coin, so why reinvent the wheel?
The main point of cryptocurrency is to fix the problems of traditional currencies by putting the power and
responsibility in the currency holders' hands.
Mission
To provide an alternative channel for everybody to flourish under a truly globalized and populist approach
of financial assertion and transparency paradigm.
This is essentially sought after by the people who vow to be economically free by fleeing from too much
interference in the case of democratic and monarchy governments that reserve the sole authority of
regulations and flow of money in the system.
23. Objective
The very first such cryptocurrency created is known as Bitcoin. It allows you the freedom to do what you
want with your money at any time and with anyone, anywhere around the world, without any restrictions
whatsoever other than those you place upon yourself. In essence, cryptocurrencies help people break free
from the constraints placed upon their money by companies, banks, their own governments, or even foreign
powers with a large leverage over the global financial system.
Strategy
When it comes to finding the perfect entry and exit point in a crypto market, it is best to assume that timing
the market is next to impossible. So, a rather sound way to go about investing in cryptos is ‘Dollar Cost
refers to investing a fixed amount at a regular interval. One of the most important trading strategies is to do
primary research. You need not be an expert at trading to conduct primary research on the value of the asset
you wish to purchase. This involves being updated with all the news flow regarding the crypto industry.
24. Tactics
Like trading in commodities and equities, crypto trading has its own pitfalls and risks. But earning long-
term benefits is also possible. To earn long-term benefits from trading in digital currencies, market
enthusiasts have to develop such strategies that make trading safe and fun at the same time. On that note,
let’s go through a couple of strategies that are helpful in getting favorable returns.
.
30. Blockchain technology can be viewed as a collection of components or layers. There are different ideas
around the number and organization of these layers, but for the purpose of this article, we’ll examine the
following:
Protocol layer: This includes fundamental architecture as well as the consensus layer, activating layer,
contract layer, and application layer.1
Networking layer: This relates to how the protocols (software) are implemented.2
Application layer: This layer acts as a user interface with the blockchain and includes smart contracts,
decentralized apps, and chain code.
These layers involve various stakeholders at each developmental stage who are involved in infrastructure
development, building services and products, funding, or education.
33. The four generic growth strategies recommended by Ansoff Matrix are –
Market Penetration
Market Development
Product Development
Product Diversification
Market Penetration: Leaders at Bitcoin Payments can use Ansoff Matrix to understand- Market Penetration.
It involves sales-driven approach in the present environment.
Market Development: This strategy involves efforts on part of the Bitcoin Payments to create new markets
and channels for the current products.
Product Development: It involves Bitcoin Payments either adding new features to the current product or
developing new products for the existing market
Product Diversification: Bitcoin Payments can use diversification strategies when both the product and
market is new to the firm.
36. From a Blockchain perspective there are many qualities it provides which can complement a Lean Six
Sigma operating model.
DMAIC – Define, Measure, Analyze, Improve and Control (DMAIC).
From a Blockchain perspective, to enable our assessment we will use its four key characteristics, namely:
Consensus, Provenance, Immutability, Finality.
37.
38. Solution;
Evidently, the legalization of digital currency will benefit world economies in the longer run. But, only if
the laws and regulations are implemented systematically and sustainably.
It will benefit a global population by offering access to basic financial and credit systems.