How do firm strategy, technology, investment, ethics, supply networks, production, market, geography, and government affect the emergence of the Cryptocurrency industry Assignment | Custom Essay Services

1. How do firm strategy, technology, investment, ethics, supply networks, production, market, geography, and government affect the emergence of the Cryptocurrency industry? 2. Describe opportunities for entities such as inventors, firms, investors, government, society, etc., on the emerging of the Cryptocurrency industry?

Cryptocurrency Industry

1. Among all the benefits that cryptocurrency has for its users, freedom is one of the main reasons that has helped this industry to emerge for the last ten years. The owner-less and decentralized economic system used by the digital currency has made it possible to transfer digital value and make payments without the need for an intermediary (banks or governments) in total freedom, 24 hours a day and 365 days a year. However, all of this represents a relevant ethical dilemma in whether or not such freedom will take away the privacy and protection of its users while the emerging of the industry continues to grow.

From an ethical point of view, cryptocurrencies attract speculative investment without adequate investor protection against situations of market abuse. Furthermore, its anonymity makes it susceptible to criminal activities, terrorist financing, and even the exploitation of human beings (Krugman). All of this has influence negatively in the industry losing credibility of many of its recent and future users. One measure that can be taken to mitigate the negative effects of the misuse of cryptocurrencies without excessively affecting their own idiosyncrasy will be the implementation of licenses at the portfolio level (Global Legal Research Directorate).

Although, the license will not cover the entire commercial spectrum because the portfolio that is behind a fraudulent business such as the ransomware payment service, will not go through a “license hoop”, but someone who wants to use her/his portfolio for legal purposes could be interested in issuing a license, especially if the law ends up obliging them. The environment becomes a little less complex, maintaining the privacy of license holders and regulating illegal conduct.

On the other hand, the cryptocurrency will lose some of its decentralized essences just with the idea of having to place trust in X specific organizations, but as long as the privacy of communications takes precedence, perhaps this is the little step that cryptocurrencies need to cover generally. If licenses work properly, cybercriminals will be forced into other payment systems and out of the cryptocurrency since any transaction that is reported by a licensed victim would be monitored by official regulatory authorities.

In the end, it is about striking a balance between security, privacy, and decentralization.

Of course, everyone wants systems to be as secure, private and decentralized as possible. But it needs to consider, especially when people’s savings are at stake, with the logical security of the assets and the malicious uses that there may be.

If generating a secure, private and decentralized system clandestine businesses will proliferate, and that will end up undermining everyone’s security and protection (Capital, SwissOne).

On the contrary, a secure, private and centralized system similar to our current treasury system creates power, which will end up taking its toll on users, whether at the level of security (misrepresentation of the initial objectives by those who are up the chain) and privacy.

An unsecured system or one that involves zero privacy should not even be considered in an emerging industry since there are assets that in this type of system should be secured (CryptoCurrency).

2. Identify the locations in the world where companies in your emerging industry are located and explain why the industry is located in these global locations.

Global location of Cryptocurrency Industry

The map above shows the location of crypto mining, which in the cryptocurrency world is the transaction’s validation process to verified information and then updating it to a blockchain digital ledger (Stroud). The map shows estimations of the locations of “medium-to-large scale mining operations” worldwide.

As shown in the map, most of the crypto mining/currency firms are mainly located in North America, Northern and Eastern Europe as well as in China, which means the use of largest amounts of electricity. China head the global list of being the country hosting most of the crypto mining ecosystems. To choose a zone for the establishment of a mining facility depends on three factors. Access to cheap electricity, prevent mining equipment from overheating, and high-speed Internet connections to receive and spread data to and from other nodes.

Worksite

Stroud, Forrest. “Crypto Regulation - 2019 Summary Update.” Medium, Medium, 4 Mar.              2019, medium.com/@Swissonecapital/crypto-regulation-2019-summary-update-              ea08c77bc3ff.

CryptoCurrency – Ripple Expands Global Regulatory Team in D.C. and Joins the Blockchain       Association: Ripple.” Reddit,             https://www.acc.com/sites/default/files/resources/vl/membersonly/Article/1489775_1.pdf

Global Legal Research Directorate. Regulation of Cryptocurrency Around the World, 1 June        2018, www.loc.gov/law/help/cryptocurrency/world-survey.php

Krugman, Paul. “Bubble, Bubble, Fraud and Trouble.” The New York Times, The New York       Times, 29 Jan. 2018, www.nytimes.com/2018/01/29/opinion/bitcoin-bubble-fraud.html.