Survey Paper On Cryptocurrency

Abstract

We all buy/sell stuff using various currencies like dollar, euro, rupee etc. Do you remember, we used to exchange services with wheat and rice grains which then interpolated the value provided by us in terms of the grains and the services provided by the seller for the amount of grains. These conventional methods were a fail as the seller could just fool around the customer with the price/value of both wheat and the service. As of now, we use Printed currency. So we know the set value of both the wheat and the services, now the customer can buy the services for exchanging the currency notes. Notes reduced many of the problems faced by a person who used wheat and rice. As of near future we see digitization of the modern currency. If the currency of Utopia Declines against the currency of Atlantis There can be an advantage for Utopia and a disadvantage for Atlantis and vice versa. Depends on certain factors. If Utopia has products or goods that is in in high demand by Atlantis then by the simple laws of demand and supply, Utopia would stand to earn more money or revenue provided Atlantis can cough up the money to pay for its imports from Atlantis. But since there is not an unlimited supply of money available to pay for imports from Atlantis, there will come a point where imports have to be decreased and the people of Atlantis will be living below what they consider their normal standard of living. Utopia will also suffer from not earning the amounts of revenue they are used to earn from exports to Atlantis. To Remedy this Atlantis might decide to devalue their currency to make their export to Utopia more attractive at least in the short term.This would be good if Atlanta has unlimited quantities of good or natural resources such as oil or bauxite for sale . If all things remain normal in Utopia then there should be a resurgence in imports from Atlantis. Once again the citizens of utopia might feel that they are again enjoying a higher standard of living .Economists call this state of affairs the equilibrium or satiation point. So one disadvantage of currency appreciation might be to reduce the amount of money from exports from the revauling country in that, countries importing might reduce imports. The revaluing country will reduce the value of their product will only get the advantage if their products are unlimited.. The advantage to buying country is that they can resume the quantities of their exports an thus increase their standard of living. Fluctuation in the values of currencies encourages short term trading in the currencies and might further complicate things in the trading countries also might have political implications.