Question 1
You are required to identify the relative financial merits of a cryptocurrency or crypto asset and speculate as to the economic value and financial valuation of that currency or asset. Your answer must take the form of an executive summary and be no more than 1000 words.
You should select the cryptocurrency or crypto asset from the following list:
Lower Fraud Risks for Buyers
Litecoins make it possible for buyers to complete their payments without divulging any sensitive financial information (like credit or debit card details) to the seller.
Thus, they enjoy a certain degree of financial anonymity that most credit cards fail to offer.
Litecoins act more like a digital cash that hackers cannot intercept in any possible manner. At the same time, your identity is also concealed for good. This helps a lot in preventing targeted data breaches like the UPS Store breach.
Reduced Transaction Fees
Transaction fees for Litecoin payments are significantly lower in comparison to the ones made for credit and debit card purchases.
This feature alone should make it a favorite go-to destination for small business ventures.
No Risk of Inflation; Individuals Can Preserve Coins
With Litecoins, there’s basically zero risks of inflation.
Inflation usually occurs when the Government issues more money over the year, decreasing the purchasing power of the people, on the whole.
But the Litecoin system was created with the sole purpose of being finite (and that number is speculated to be around 21 million). Thus, without the possibilities of issuing excess currency, the threat of inflation comes down to almost zero. This point benefits both the seller and the buyer, in general.
Easy to Use in Any Situation
As far as international transportation of Litecoins is concerned, the job is as easy as a piece of cake. All you will need is a simple memory stick* and you are sorted enough for the job.
You can even use the same currency in a different country without going through the pains of contacting the local bank for any purpose of currency conversions. If this doesn’t count as a benefit, what does?
*Note: You use the memory stick for transporting Litecoins in it in the same way you do audio, video, executable programs, and other related data.
No Involvement of Any Third Party
The entire process of Litecoin transactions is peer to peer.
There’s no involvement of a third party. No one can freeze, tax, or claim your coins. They cannot be stolen and cannot be seized by the government in no possible circumstances.
Quick Payments
Credit card funds can be locked up for as long as a week (or even more) in case a customer asks for a chargeback. Thus, payment delays occur for apparently no reason whatsoever.
This is generally not the case with Litecoins. They are usually much quicker** in comparison to conventional credit card settlements.
A Safer Ecosystem
Each Litecoin wallet transaction is signed by an authentic digital signature before it is sent to a blockchain.
This complete process makes the app a safe place for storing and exchanging cryptocurrencies.
International Payments Made Easy for Small Business Ventures
Small online sellers and retailers don’t often sell their services or products internationally because of the high cross-border transaction fees.
Litecoins, being global, relives this pressure once and for all, thereby making payments cheaper, safer, easier, and faster.
Smart Contracts
The idea of smart contracts was conceived by the researcher, Nick Szabo in the nineties (1990s).
The primary idea was to implement a self-executing and programmable agreement without the intervention of any third party.
Although, the actual implementation of this concept hasn’t been truly realized yet, but the emergence of Litecoins is slowly and steadily giving momentum to this type of contact between parties.
Asset Distribution
The strong value of the Litecoins’ network gives total credence to the value of a Litecoin as a new form of an asset class.
Meaning, people today, are seeing them as a form of an asset that can be used to back the value of anything with worth.
Litecoin asset distribution can help companies raise money in a much more secure environment without relying a lot on professional bankers charging massive fees.
Litecoin Mining
This is the process in which computers confirm the fact that a transaction has actually happened on the network.
Litecoin mining has all the potentials of turning into a big business, in itself.
Wallet Building Technology
With the emergence of Litecoins, comes the virtual wallet technology allowing users to store, pay, and receive their cryptocurrencies from anywhere on the planet.
Although this technology has already been in use since the first software client for cryptocurrencies were created, it does not signify that this sector has progressed with zero innovation.
More and more advanced wallet technologies are being built now to secure the entire Litecoin ecosystem. This has actually given rise to several business opportunities where companies are focusing more on the wallet-building part of the job making a good amount of money out of the same.
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