Question

Cryptocurrency has seemingly taken the world by storm over the last several years, and will likely be an ongoing issue which presents challenges to governments, banks, and businesses across the globe. Your task for this assignment is to do some cursory research on the subject of cryptocurrency and answer the following question;

What impact might cryptocurrency have on international business in the next 5 years, especially considering the aspect of exchange rate risk?

Your answer should be approximately 250-500 words, and I am particularly interested in YOUR analysis of the matter.

***** Please type in a word document*****

Answer 1

Bitcoin Price will surpass $100,000 per Bitcoin-Outside of complete system failure, Bitcoin is probably the most battle-tested crypto-asset and we're still early in the exponential curve. Many may call the tulip bubble along the sidelines, our society has never before had such a global and artificially scarce dimension. Regular amounts of transactions (in USD) of Bitcoin are actually around 100X what they were at the beginning of this year when the value was moving closer to $1,000 per Bitcoin. While most institutional managers are still sitting on the sidelines, this volume growth is waiting for mature custody technology.

Commodity Markets for All Digital One of the main disruptive fields will be digitally deliverable services: measurement, bandwidth, and the like. Advances in blockchain technology can make marketplaces easier to shape and carry enormous amounts of digital supply. It is still unclear which protocols will be the winners, current or still to be developed. The winners would naturally bring the speculators needed to make a market (both purely financial and node providers). How much these customers will eat in Amazon's AWS and Google's cloud sector or whether most ambitious operators will run their businesses on top of these platforms

The challenges of building a liquid and deep market in a decentralized fashion are quickly noted by many. Current centralized exchanges are eager to see how their business will evolve while minting a huge amount of profit at the moment. Market forces will drive the sharing and interconnection of all decentralized order books but once the entire market is fully connected, exchanges become fully, well, exchangeable. Regulation is likely to be a major driver of decentralization — as some currencies and currency exchanges become more heavily regulated, it will push actions either to entities that comply adequately (for institutional investors) or underground.

Increasing liquidity for both workers and venture capital supply would cause more and more experienced entrepreneurs to miss registering their company in a regional domain. Or cause value creation to occur outside this standard corporate formula. The words "vanilla" usually pursued by investors and the value of stock options for employee compensation may no longer be the dominant way for companies to organize themselves. With new innovation that takes advantage of blockchain technology, the Delaware C. Company itself may fall out of favor.

Crypto Equities Emerge: Licensed Equity Tokens Just as more new projects are going to be built around a cryptocurrency economy, more companies are looking to attach their ownership or interest to a legal tokenized equity framework. Quick trading, flexibility, and freedom to list resources for any exchange— these are not merely advantages of token economies. There will have to be more oversight, however look for private equity shareholders and other trapped capital to try liquidity without the NYSE or Nasdaq listing.