GSBS6144 T1 assignment

1 Topic

Recent years have seen rapid development in crypto currencies, including Bitcoin and Ethereum. The effect of crypto currencies on banking business is challenging. Some see these currencies as a new, overdue form of currency. However, some argue that crypto currencies have major shortcomings, as they lack regulation, low transaction cost and general acceptance as a medium of payment. In this assignment, you are required to prepare a report to discuss the following issues surrounding crypto currencies:

1. Describe the crypto currencies and their market. Outline the creation process of crypto currencies and contrast its main features with traditional currencies. Discuss the currencies currently in the market and the platforms where they are traded.

2. Crypto currency supporters state that they could solve many problems of traditional currencies. Research some of those arguments and critically assess the viability of those arguments. Focus on topics such as inflation, money supply and associated risks of both systems.