Modernization of. Currency

Evolution Of Currency: Bartering System: Grains and cattle are popular in Barters. Firstly recorded in Egypt. Coinage: Metals were used as coins to represent value. Difficult to carry with. No place to store value.

Evolution Of Currency:: (continued) Paper Notes:: Firstly printed in Sweden. Great for Business. Easy to carry with. No raw material required for mass production. Centralized by National Banks.

Evolution Of Currency:: (continued) Transfer of money via Telegrams. (1860) Credit Cards: (1946) By John Biggins named “Charg-It”. Mobile Banking: (1999) Europian banks started with smart phones. Euro begins to circulate.(2002) Contactless payment cards issued in UK.(2008) Cryptocurrency (2009)

Cryptocurrency: (Intro) Type of Digital currency. Virtual and Alternative Currency. Uses cryptography : To secure transactions. Control creation of another unit. Verify Transfers. Prove ownership.

Cryptocurrency: (Intro) Decentralized Currency. Proof of work is analyzed by ‘Cryptocurrency Hash Functions’. Not required a central athourity.

Cryptocurrency: (Intro) Bitcoin: The first cryptocurrency and is released in Till now more than 4000 cryptocurrencies were introduced and about 1300 are present at that time. Cryptocurrencies are transferred and regulated by ‘Blockchain System’.

Blockchains: Discovered in 1991 to timestamp digital documents. Distributed database containing records called Blocks. Open Ledger (anyone can host). Hash: Unique identifier which identifies a block. Hash rate value is calculated as a block completes. Proof of Work Protocol: Private and Public keys These signatures were used for verification

Blockchains: (continued) Security Hash + Proof of work Peer-to-peer Anyone can have copy of blockchain. Block can’t be added without the verification of each note of POP System

Mining of Bitcoins: Systems works as third party and solve algorithms. By private and public keys, these algorithms are solved. Powerful systems are Used. Mining Fee:

Crypto Wallets:: Acts as storage. Keep keys of the currency. Protected by passwords.

Advantages of Cryptocurrency: Transactions: Peer-to-peer network (cutting middleman). Asset transfers. More confidential Transactions. Not actual transaction fee.

Advantages of Cryptocurrency: Greater Access to credit. Easier International Trade. No time or geographical limit. Individual Ownership. Adaptabilty.

Advantages of Cryptocurrency: Strong Security. Can make money: Mining. Trading.

Disadvantages: Difficult to Understand. Lack of Legal Backing. Lack of market utility. Irreversible Wallet.Transaction

Disadvantages: (continued) Decentralized. Money Laundering Illegal Activites. Anonmity. Darkweb Market.

Legality: Virtual currency lacks many regulations and costumer protections. Many countries have banned cryptocurrencies. Including Pakistan. In some countries it has some limitations. Some countries considered it Legal like USA & Canada. No Insurrance.

Importance: Due to limited stock, demands are increasing. Worth more than 4 trillion US$ by In US, it is considered as property. Thai government announces their own cryptocurrency.

Conclusion: It is beneficial but also has a lot of negative aspects. Its impossible to stop cryptocurrencies. Govt’s have to make monetary policy. Tax regulations have to be decided.